What portion of your salary should you spend on loan EMIs?
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In this age of cybercrime, we all should have a comprehensive cyber insurance policy. It is a type of insurance policy that covers the policyholder against cyber-crimes and digital frauds. It protects the policyholder from risks of getting exposed to cyber-attacks such as email spoofing, IT theft, cyber extortion, online banking-related problems etc.
Several cyber insurance plans are offered by some of the insurance providers. Expert recommends ones that are designed specifically to cover the individuals against potential cyber threats and risks. Money9 gives you a brief idea about six main points before you opt for a cyber insurance cover.
Exposure
Evaluate your risk before opting for a plan. Simply figure out how much of your private data is exposed, such as financial transactions, card payments, e-wallet payments etc. Along with information stored on digital devices, social media, cloud storage etc. Then you can fix your insurance limit.
Threats covered
Before finalising an insurance cover, understand the coverage offered by the insurance company. This will help you understand what is covered in the policy. Usually, these policies cover 10 or 15 major cyber threats, like email spoofing, cyberstalking, fraud online transaction, malware attacks, identity theft, data breach by the third party, media liability, cyber extortion, social media liability, IT theft loss, phishing, password related fraud etc.
Limit
Experts say policyholders should opt for a sufficient limit of insurance, based on their risk and exposure. The sum insured should depend on the risk covered. For instance, ICICI Lombard or Bajaj Finserv offers sum insured options ranging from Rs 50,000 to Rs 1 crore with their individual Cyber Safe Insurance Policy.
Premium
Along with the premium understand the policy first. Maximum companies offer a deductible clause, in which the policyholder has to bear the loss first by himself and the insurance company pays over and above the same later on. Some insurers offer low premium rates but have deductibles. Experts say it might be better to pay a decent premium rather than have high deductibles in case of a claim.
Not included
Cyber insurance policies will not cover any loss arising out of or based upon a person’s dishonest conduct, physical injury, property damage, infringement of business-related intellectual property, etc. It is always advisable to read the fine print carefully and understand what is excluded and what is not.
Add-on
There are certain add-ons in some policies. These can be personal ATM card cover. The personal payment card loss cover provides cover for loss of ATM card liability, counterfeit card liability, as well as ATM robbery, wherein, the policyholder will get covered also against unauthorised transactions made online, including loss or theft of the ATM card.