In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of 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:

1, 2 and 4 only

1, 3 and 4 only

2 and 3 only

1, 2, 3 and 4

APEDIA

UPSC Prelims

2020 • 04 Oct, 2020 • Paper-1

In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of 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:

Correct Answer

1, 3 and 4 only

Scope of Cyber Policies: Individual cyber insurance policies are fundamentally designed to mitigate financial and digital losses stemming directly from virtual ......

💡 Analysis & Explanation

Scope of Cyber Policies ▼

Individual cyber insurance policies are fundamentally designed to mitigate financial and digital losses stemming directly from virtual threats, data breaches, and online fraud.

IT Restoration and Legal Costs ▼

Standard coverage packages universally include the technical expenses required to remove malware and restore corrupted data systems (Statement 1), the consulting fees incurred during complex ransomware/extortion negotiations (Statement 3), and crucial legal defense costs against third-party privacy lawsuits (Statement 4).

Hardware Exclusion Rule ▼

Cyber insurance strictly covers non-tangible, digital damages. It functions entirely differently from physical property or home insurance. Willful physical destruction, hardware theft, or water damage to a computer is categorically excluded from standard cyber policies. Thus, statement 2 is incorrect.

Conclusion ▼

Options 1, 3, and 4 represent typical and accurate policy inclusions.

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