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?
- Cost of restoration of the computer system in case of malware disrupting access to one's computer
- Cost of a new computer if some miscreant wilfully damages it, if proved so
- Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion.
- Cost of defence in the Court of Law if any third party files a suit.
Select the correct answer using the code given below:
Detailed Explanation:
Answer: Option 2 — 1, 3 and 4 only
Cyber insurance for individuals covers digital risks and financial losses arising from cyber incidents. It includes restoration costs for compromised systems, legal defense expenses, and consultant fees for handling cyber extortion, but excludes physical damage to hardware caused by willful acts of vandalism.
✅ Statement 1 – Correct: Cyber insurance covers the cost of restoring computer systems and data corrupted or disrupted by malware attacks.
❌ Statement 2 – Incorrect: Cyber insurance does not cover physical damage to hardware or replacement costs due to willful physical vandalism; it covers only digital risks and cyber-related losses.
✅ Statement 3 – Correct: Cyber insurance covers expenses for hiring specialized consultants to investigate cyber extortion threats (such as ransomware) and minimize associated losses.
✅ Statement 4 – Correct: Cyber insurance provides coverage for legal defense costs when a third party files a lawsuit for privacy breaches, data theft, or defamation resulting from a cyber incident.
Question 1 of 2 Cyber Laws in India
Practice PYQ questions from this topic across all years
First question in this topic
In India, it is legally mandatory for which of the following to report on cybersecuri...