UPSC Previous Year Question | Prelims GS | 2020

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

  1. 1, 2 and 4 only
  2. 1, 3 and 4 only
  3. 2 and 3 only
  4. 1, 2, 3 and 4

Answer

Correct Answer

1, 3 and 4 only

Explanation

Cyber insurance policies typically cover restoration costs after malware, consultant fees for cyber extortion, and legal defence costs of third-party suits. They generally do not cover wilful damage to hardware, so statement 2 is excluded. This was a debated item, and the key retained (b).

Topics: cyber insurance for individuals, economy, insurance, money & banking