Does your cyber insurance cover provide you protection against internet frauds in the healthcare industry?

What is a cyber insurance policy all about?

A cyber insurance policy typically covers losses arising out of thefts from your bank account or wallet, or if someone impersonates you online and withdraws money. A cyber insurance policy also covers you from cyber bullying; this is important for social media influencers who have a large and prolific social media following. Cyber extortion — an act where a criminal takes your computer, systems and data hostage and releases you only if you pay a ransom — is another common crime against which a cyber insurance policy covers you. And the policy covers the restoration and repair charges as well to get your systems back in shape.

SBI General's VaultEdge policy covers you against all these losses.  If you attempt to sell non-commercial goods over the internet and you are defrauded into, say, paying the buyer money instead of receiving money — you are covered too.

“Anyone who has a bank account is a potential customer of a cyber insurance cover,” says Manoj Kumar AS, Director - Liability and Mumbai Branch Head at Global Insurance Brokers Pvt Ltd.

If you unintentionally say something objectionable on any social media platform and get sued, the policy covers your legal costs and damages.

The policy covers negligence on your part. Obviously, if you indulge in any malicious activities, your losses won’t be covered. Any losses arising out of online gambling or cryptocurrencies will not be covered. The company also denies to comment if the patients will be covered against any losses caused by the cyber attack on healthcare system like the recent AIIMS ransomware attack.

What works?

Cyber insurance policies aren’t as popular in India as health and life insurance policies, or even motor insurance policies. But most of us now increasingly spend more time over the internet. For those who indulge in a lot of online shopping, maintain an internet bank account, and use social media platforms, VaultEdge is a good addition to have.

If you use social media a lot or are a social media influencer or a commentator, then this policy covers you against any unintentional damage you may cause due to your opinions. The policy covers your legal fees. And if you need any psychological assistance like counselling to get over a cyberbully attack, the policy covers those costs as well.

Another good inclusion in this policy is any unintentional damage caused by an underage member of your family, such as your child. Kapil Mehta, Co-founder, SecureNow Insurance Broker Pvt Ltd, terms this an important addition because underage children spend a lot of time on the internet and may not understand the consequences of some of their online behaviour. “And very often, their parents have to pay for the consequences,” he says.

What doesn’t? 

Insurance policies work well for you if the claims disbursement happens quickly and you get your insured amount back. Mehta says that there isn’t much evidence to show how quickly cyber insurance policies reimburse your sum assured.

Documentation can be lengthy. Typically, cyber policies need a police complaint or a letter from a bank that it won’t reimburse you your losses if money gets stolen from your bank account. You need to prove that you’ve lost money; like a bank account or a credit card statement. 

Apart from the above mentioned documents, SBI’s Cyber VaultEdge policy requires you to keep handy the copies of legal notice received from any affected person/entity, copies of summon received from any court in respect of a suit filed by an affected party/entity, copies of invoices for expenses incurred for the services of specialist, evidence of consultation with psychologist / psychiatrist, as required under different circumstances. 

Moneycontrol take

A cyber insurance policy needn’t be the first insurance policy you should buy. Your first policy should always be a health insurance policy, followed by life insurance, if you have financial dependents. A third-party motor insurance policy is mandatory as well. 

These could be followed by other policies like home insurance policy and cyber insurance policy. Mehta says that a cyber insurance policy works well for senior citizens who conduct internet banking but may not be very internet savvy. This makes sense because we get a lot of SMSs, emails asking to click on links; many of these could be phishing traps.

The policy also works well for young people who spend most of their time on the internet and prefer to carry out their transactions over the internet.