PYQ Question

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the funds and other bene

August 6, 2026 en

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:

A. 1, 2 and 4 only
B. 1, 3 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4

Answer: B

Explanation

Cyber Insurance is designed to guard businesses from the potential eﬀects of cyber-attacks. It helps an organisation mitigate risk exposure by ofsetting costs, after a cyber-attack/breach has happened. To simplify, cyber Insurance is designed to cover the fees, expenses and legal costs associated with cyber breaches that occur after an organisation has been hacked or from theft or loss of client/employee information. In India, cyber insurance covers (generally) the following: Identity theft Cyber-bullying and cyber-stalking 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 Social Media Cover Phishing Cover E-mail Spoofing Media Liability Claims Cover Cyber Extortion Cover Privacy Breach and Data Breach by Third Party. Hence only options 1, 3 and 4 are correct.