IRDAI panel suggests cyber liability insurance: What kind of losses can be covered

A committee set up by the Insurance Regulatory and Development Authority of India (Irdai) has recommended the introduction of a cyber liability policy. This policy will protect the policyholders from cybercrimes.

In October last year, the IRDAI had set up a committee for cyber liability insurance. The committee has submitted its report with recommendations for the preparation of cyber liability insurance.

According to the committee report, “Cyber insurance policies, currently available, address the requirements of individuals reasonably well. But there are some areas in the product features and processes which need improvement. Recommendations made to fill in the gaps include the need for flexibility in the insistence of a First Information Report (FIR) at the time of claims, clarity in exclusion language relating to compliance with reasonable practices and precautions, targeted intrusion, unsolicited communication and the need for coverage for bricking costs etc.”