ICICI Lombard introduces Cyber Insurance cover for individuals

ICICI Lombard introduces Cyber Insurance cover for individuals

In these unprecedented times owing to the COVID-19 crisis, remote working has become the new normal. Since the lockdown was announced, like everywhere else, S. Mohan’s company too announced remote working. Before everything shut down, Sameer wanted to buy a laptop, since his device was faulty. He kept browsing different websites to find a good deal for the new laptops.One day, he got a mail offering an unbelievable deal on his favorite brand.  However, buying the laptop needed his credit card information. Since the website offered home delivery within 48 hours (even in the lockdown) he made an impulsive purchase through his credit card. Next morning Mr. Mohan woke up to a message from his bank stating that he has surpassed his credit card limit which was around INR 3,00,000. When he opened the mail again, the ‘page was not found’. It then dawned upon Mr. Mohan that he has fallen prey to online fraud. He had lost approx. INR 3, 75,000 in a single night. He could do nothing about it as he did not have any protection to see him through.

To help customers overcome such tragedies, ICICI Lombard General Insurance, India’s leading private sector non-life insurance company, announced the launch of its Retail Cyber Liability Insurance policy. This policy offers complete protection to individuals and their families against any cyber frauds or digital risks that could result in a financial or reputational loss.The retail cyber insurance product is a form of insurance that protects individuals against losses that individually vary from online theft to unauthorized transactions.

India is one of the most prominent digital markets, with a vast potential for exponential growth. India is the second-largest App Market by Download and has over 180 Mn+ e-commerce users. When it comes to phone-based transactions, we have over INR 1 Trillion UPI transactions. This lays the ground for a huge potential for cyberattacks. Undoubtedly, and this opportunity is followed by the menace of cyber risks and frauds which, too, have been growing considerably. According to a recent Reuters report quoting Indian Home Ministry officials, cyber-attacks have soared 86% in the four weeks roughly between March and April and 37% in the first quarter of 2020. Additionally, the hackers based in China attempted over 40,300 cyber-attacks in India in third week of June; these are mostly scams pertaining to COVID-19. According to the authorities, the attacks were aimed at causing issues such as denial of service, hijacking of internet protocol and phishing.The financial implications of these attacks are huge; INR 1.24 Trillion is the amount lost by India in the past 12 months directly or indirectly through cybercrime. There were a total of 131.2 Million Cyber Crime victims in 2019 alone out of which 63% were impacted financially.Going by this data, we are at a high risk of exposure, and personal cyber insurance seems the only respite.

The company’s product is designed to secure the digital world against losses in the event of a cyberattack. The coverage will include protection against:

  • Identity theft
  • Cyber-bullying
  • Cyber extortion
  • Malware intrusion
  • Financial loss due to unauthorized and fraudulent use of bank account, credit card and mobile wallets
  • Legal expenses arising out of any covered risk

ICICI Lombard has innovated by covering newer threats such as

  • Reputation injury– all the expenses incurred in restoring digital reputation with means of removal of the harmful publication from the internet can also be claimed.
  • Individual lost wages– if someone loses wages that would have been otherwise earned, for the time necessarily taken off from work to rectify facts arising out of any covered risk can also be claimed

The policy can be purchased at an affordable rate by all digitally active individuals. The premium ranges from INR 6.5 per day to INR 65 per day. The Sum Insured for the cover ranges from INR 50,000 to INR 10,000,000 as opted by the policyholder. The policy provides coverage to the entire family, including children for a duration of 1 year.

Speaking on the launch, Sanjay Datta, Chief – Claims, Underwriting and Reinsurance said, “We are living in a digital world where data is being engendered, transmitted and deposited every nanosecond. Today, data is gold. And, to protect it, is paramount. While we live a digital life, the risks of cyberattacks have also grown exponentially. Our new product comes at an opportune moment when everybody is working remotely, using social media and net banking and is digitally active. The product is designed to protect individuals against the dangers that come with the connected life like cyber-bullying, identity theft and more. The policy asserts the company’s pledge to provide innovative new-age risk solutions to our customers while protecting their reputation, prospective data breaches and losses in case any vital information is stolen or abused.”

ICICI Lombard’s commitment to providing the best for its consumers reflects through these offerings and more which ensure that the policyholders are stress-free while they work from home and even after. True to its ethos of “NibhaayeVaade” (Keeping Promises), ICICI Lombard always aims at being ahead of the curve to provide the customers with innovative and unique products against the new risks.