In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the funds and other benefits? 1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer 2. Cost of a new computer if some miscreant wilfully damages it, if proved so 3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion. 4. Cost of defence in the Court of Law if any third party files a suit. Select the correct answer using the code given below:
Explanation
Statement 1 is Correct: Cyber insurance policies for individuals typically cover the costs incurred for restoring the computer system and data if they are corrupted or disrupted by a malware attack.
Statement 2 is Incorrect: Cyber insurance is designed to cover digital risks, liabilities, and financial losses; it does not cover physical damage to hardware or the cost of replacing a computer due to physical vandalism.
Statement 3 is Correct: In the event of cyber extortion (such as ransomware), these policies generally cover the expenses of hiring specialized consultants to investigate the threat and minimize potential losses.
Statement 4 is Correct: Cyber insurance provides coverage for legal defense costs if a third party files a lawsuit against the insured for privacy breaches, data theft, or defamation resulting from a cyber incident.