India:Non-life insurers asked to provide personal cyber risk coverage

Kathmandu: The Indian insurance regulator has asked non-life companies to launch individual cover soon and widen the scope of their existing cyber risk policies. The regulator Insurance Development and Regulatory Authority of India(IDRAI) has also recommended that insurers need not ask for a first information report (“FIR”) for losses below Rs 5,000 and settle them on the basis of an e-complaint at the National Cyber Crime Reporting Portal(NCCRP).

The regulatory authority has come out with a product structure for cyber insurance based on the suggestion provided by a working group. The group has come out with a model policy wording for personal cyber insurance cover.

The IRDAI has issued circular and directed non life insurance companies to come out with cyber risks cover for individuals at the earliest. Till date, most of the companies providing cyber security insurance coverage to corporate house.

An individual’s exposure to cyber risks is increasing with increase in exposure to the digital world. Considering the need for cyber insurance for individuals, IRDAI has charted out some salient features, coverage and suggestions in its guidance document on product structure for cyber insurance, which insurers can look to adopt.

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