Cyber Insurance at Bajaj Finserv Markets

1. What is Cyber Insurance With increasing visibility of people and businesses in the virtual world, cyber-crimes are on the rise. From social media accounts to bank accounts, and personal data to identity are all prone to hacks and cyber thefts. While a Cyber Insurance policy cannot protect you from cybercrime, it can definitely cover the financial risks associated with it. Moreover, a Cyber Insurance policy can be used to cover IT-related risks as well. What does Cyber Insurance cover? Cyber insurance is a relatively new concept in the insurance domain. This policy covers both 1st party and 3rd party losses associated with cyber damage. In the event of a cyber-breach, a Cyber Insurance policy will cover the following: – Forensic investigation– If there is a cybercrime, the business or the individual needs to bring on board a forensic investigator to analyse the extent of damage. A forensic team can also help mitigate the occurrence of such eventualities in the future. A cyber insurance policy will cover the fees charged by 3rd party investigators or the security firms for investigation and mitigation consulting services. Revenue loss– If there is monetary loss due to cyber breaches such as phishing, network shut-down, latency, identity theft or cyber extortion, cyber insurance plans online can definitely help you out, like the cyber insurance Finserv Markets offers. Legal expenses– If there is a dispute raised in the court of law with respect to a data breach, the company has to pay fines and penalties due to cyber extortion. A cyber insurance policy will cover you for all such legal expenses. Counselling Expenses– Dealing with the aftermath of a cyber security breach can be a traumatic experience. A Cyber Insurance policy will cover you for all reasonable fees, costs and expenses of an accredited psychiatrist, psychologist or counsellor chosen by you, treatments relating to stress and anxiety caused due to the cyber breach. IT Consulting Expenses– If you want to avail IT consulting services post a cyber- breach, your cyber insurance policy will provide for cover the expenses incurred. What is the eligibility to apply for Cyber Insurance? Any individual above 18 years of age can buy a cyber-insurance policy. What is the premium and sum insured for Cyber Insurance? Online cyber insurance plans are quite flexible. The premium is calculated based on factors such as: The probability of data or identity theft. The data security arrangements of the individual. The coverage sought by the individual.

2. What is excluded in cyber insurance policies? Though the insurance companies provide a wide coverage under this insurance type, there are some specific events which are not covered. These include Illegal online activities performed by the insured. The financial losses that have been reimbursed by the bank. Negligence from user-end which leads to data loss or Cybercrime or data loss which took place before the insurance period commenced. Claims reported to the insurance company after 6 months of the incident. Any distribution of unsolicited correspondence or communications. Bodily injury or property damage. War, terrorism or government acts. Therefore, besides taking strong cyber security measures enabling firewalls, software patches, penetration testing frameworks and procedures etc., it’s also important to have a Cyber Insurance to enjoy an all-round protection. Opt for Cyber Insurance Plan today and grow your business online, tension free! Why Do You Need Cyber Insurance Given the rapid increase in cyber crime today, cyber security has become more important than ever; specially to prevent private and confidential information from being divulged or compromised in any way, both on the personal and professional front. Most of our transactions are carried out on online portals that have questionable safety standards. Perils of embedded malware and phishing are constantly jeopardizing our digital security. A cyber insurance plan is designed to cover the risk encountered in case of a security breach. The monetary losses incurred in such a case can be recovered if you have a digital insurance policy. Ever since 2005, cyber insurance has been purchased by individuals to recover from unwanted security breaches that happen almost every other day. If you don’t have a Cyber Insurance plan yet, here are some important reasons to get one:- Data breaches can lead to potentially huge losses–According to Ponemon Institute’s 2017 Cost of Data Breach Study, the average cost of a data breach in the country rose nearly 8% year-on-year to Rs. 11.9 crores ($1.7 million). These losses include costs like stolen records, customer defections, investigation costs, opportunity loss, legal action, reputation management and customer support, among others. The instances of cyber breaches are increasing exponentially– According to a survey conducted by defence grade technology, the incidences of cyber-security breaches in India are higher than the global average. Cyber Insurance offers comprehensive protection– Cyber insurance offers comprehensive protection against a wide range of risks. A Cyber Insurance policy covers the losses incurred due to identity theft, cyberstalking, malware attack, email spoofing, cyber extortion, privacy and data breach by the third party and various other costs

3. incurred due to data breach. With Finserv Markets, you can get a cyber-insurance plan that covers you in the event of these cyber-security threats. Cyber insurance compensates legal and other monetary losses– Cyber insurance reimburses the losses incurred by first parties as well as third party claimants. An investigation procedure where damage repair is delved into, can be covered with a Cyber Insurance. Financial losses are assessed, also taking into account the damage to the reputation of the individual in question and the lost data that is to be recovered. Cyber insurance also covers the legal expenses as well as the cost of notifying those customers who are the victims of a data-breach. Minimizes online risk- Most business organizations connect with their potential customers on various social media platforms and many times monetary transactions are carried out through the same medium as well. This gives hackers the scope to launch cyber-attacks. The graver the position, the severity of the risk also increases exponentially. Hence, to reduce their vulnerability factor, individuals need to have a cyber-insurance in place. While buying cyber insurance online, one should understand that the coverage varies from insurer to insurer. Usually, most insurers cover the above-mentioned concerns. Additionally, there can also be deductibles attached and hence you must compare insurance plans before buying them online. Certain policies can be time bound – that can roll into months or years. You should pick a digital insurance policy that will give you comprehensive coverage and protect your online accounts. Factors to Consider While Buying a Cyber Insurance Plan There is a significant increase in the number of cyber fraud cases nowadays and it is time you take steps to protect yourself from the same. One incident could make you lose your hard-earned money, within a span of a few minutes. Since we tend to carry out financial transactions on our computers and phones, we sometimes end up using public Wi-Fi, which is not secure. Therefore, it is best to get a cyber insurance plan, which will cover you in case of online breaches across all gadgets that are connected to the Internet. It is easy to get a policy but there are certain factors you need to consider before buying one. The coverage You need to consider the inclusions of the policy you purchase. There are some plans, which treat inclusions like a clause, and you need to understand the liability arising out of the same. One of the most important elements of the policy is cover against malware threats and most plans provide it as an optional cover. You need to ensure that the plan offers covers against the same. An ideal plan should cover against the following: Phishing and Spoofing Fraudulent transaction carried out on your bank account or on your card

4. Reputation liability, which includes claims alleging defamation, loss caused due to identity theft Restoration cost incurred due to the damage caused due to the malware, Claim for damages against the third party caused due to data breach Cyber extortion loss. Sub-limits Every policy offered has a sub-limit, which means the cover will remain restricted to a specific percentage. The insurer will be required to pay a cover cost, which will vary according to the plan opted for. In cyber insurance plans, there are sub-limits for every clause; however, malware is optional in certain cases and comes at an additional cost. Prevention is always better than cure, which is why you need to invest in a digital insurance plan that provides comprehensive coverage and best suits your requirements today. Major Hurdles for Cyber Insurance It’s no secret that the internet has revolutionised the way we live our lives. From shopping to education and everything in between – cyberspace is the enabler of life in the 21st century. Sometimes, sharing personal and financial information online is prone to multiple security hazards. This renders us vulnerable to issues like identity theft and misuse of our personal data. Even in the world of business, data breach is one of the leading manifestations of cyber-crime and this has longstanding implications on everyone involved. In India currently, there are more internet users than ever before, and the number continues to rise steadily. Add to this the fact that an increasing amount of our everyday life takes place online, the need for cyber insurance is greater than ever. Yet, there are still some major obstacles that impede its popularity. Let’s take a look at why cyber security hasn’t quite become as popular as it should: Lack of uniformity in internet devices – The internet boom in India has been made possible because of the sheer variety of devices available to the consumer – from high- end voice assistants and laptops to basic smartphones. Typically, higher end devices offer more security (via encryption services) than their lower end counterparts do. This creates a massive gulf in the level of security offered. The end result is that such a scenario makes it almost impossible for legal and technical standards to be set for data protection by the concerned authorities. Lack of architecture – Private sector companies run their own critical infrastructure to deal with internal security, while the government as well as the armed forces have their own security provisions. Vitally missing is a national security architecture that unifies the efforts of various agencies and stakeholders to make sure that any and all cyber threats are dealt with and tackled effectively. Global playing field – Unlike a country or a state that has certifiable physical boundaries, cyberspace is completely boundless. The fact that the internet is open and global is its greatest asset but also its biggest threat because attacks can come from

5. anywhere. This means that the scope of vulnerability could be anywhere from an individual attack to a national one. To combat this, there is the urgent need for a conscious effort to develop the architecture and mechanisms necessary to make cyberspace safe for everyone. Lack of awareness – Perhaps the most pressing issue for digital insurance is the lack of awareness of the sheer magnitude of the threat of cyber attacks. The lack of a legal framework to deal with cyber-crime compounds this problem and presents a grey area which can be exploited by cybercriminals. Despite the hurdles that cyber insurance faces, it’s important that every individual and the corporate entity does what it can to prevent data hacks and keep the internet as safe as possible. With Finserv Markets, buying cyber insurance online is easy, convenient and completely hassle- free. What’s more? You get a host of other features and benefits such as high sum assured, extensive coverage etc. So why wait? Head over to our website and get yourself insured, today! Cyber Insurance: A Game Changer Digital India was one of the major initiatives launched by our Hon’ble Prime minister Shri. Narendra Modi. In a country like India, which prides itself as a pioneer of digital revolution, the need for cybersecurity today, is now more than ever. Since, both individuals and businesses these days need to maintain data online and use various online applications and services in their day to day activities. It has become critical to safeguard yourself against all online frauds and threats. Right from data to online transactions, everything should be protected with adequate security measures. Though new applications are being designed to ensure cyber safety, Cyber Insurance or Digital Insurance has become the need of the hour for individuals and more so for businesses. Ecommerce companies which deal with a large volume of financial transactions are especially susceptible to cyber threats. Also, websites that amass a large volume of data are also vulnerable to data thefts. A Cyber Insurance can help avert the huge financial losses resulting from cyber security breaches. Here’s how Cyber Insurance has become a game changer for Digital India: – Investigation– A forensics investigation is necessary to determine the type of cyber breach, how to repair damage and how to prevent the same type of breach from occurring in the future. Investigations may require the services of a third-party security firm, as well as coordination with law enforcement and the CBI. A Cyber Insurance policy covers all investigation costs. Financial losses– A Cyber Insurance policy compensates for monetary losses caused due to cyber breaches such as business interruption, data loss recovery, network downtime and costs involved in crisis management, which may involve repairing damage to your reputation as well. Lawsuits and Extortion– This includes legal expenses associated with the release of confidential information such as intellectual property, regulatory fines and legal settlements. This may also include the losses occurred due to cyber extortion, such as from ransomware.

6. Counselling Expenses– Dealing with the aftermath of a cyber-security breach can often be a disturbing experience. A Cyber Insurance policy will provide compensation for all reasonable fees and expenses of an accredited psychiatrist, psychologist or counsellor chosen by you for treatments relating to stress and anxiety caused due to the cyber breach. IT Consulting Expenses– If you want to avail IT consulting services post a cyber- breach, your Cyber Insurance policy will provide for cover the expenses incurred.