Who can buy Cyber Insurance for Non-banking Financial Company?
The following fund houses need cyber insurance for non-banking financial companies:
- A pawnshop offering financial solutions must purchase a cyber security policy
- A saving and loan cooperative must subscribe to the cyber security policy
- The capital market including a non-bank financial institution must purchase a cyber security policy
- Companies dealing in the money market must obtain cyber security policy
- Venture capital companies may avail of a cyber security policy
- The insurance companies must subscribe to the cyber insurance policy
- The leasing companies are also prone to cyber risk
- The Fintech non-financial institutions are also susceptible to cyber risks
- Pension fund houses or companies such as Employer Pension Fund (EPF) must purchase cyber security policy
Cyber Insurance for Non-banking Financial Company: Inclusions
The cyber security policy offers comprehensive coverage against the claim made by third parties:Â
- The policy offers forensic investigations against the cyber breach
- The policy offers legal advice to the insured against a claim made by the client or third party
- The policy offers the benefits of crisis management
- The policy indemnifies the insurer against the penalties resulting from a lawsuit
- The policy appoints an attorney in case of a lawsuit
- The policy offers coverage against the regulatory penalties upon the breach of IT rules
Cyber Insurance for Non-banking Financial Company: Exclusions
Cyber security does not provide coverage for the following:Â
- The cyber insurance contract does not include any bodily injury
- The insurance policy is not subject to provide any damage to the physical property of the insured
- The insurer is not liable for the loss caused due to ignorance of knowledge
- The loss caused due to participation in the dishonest and malicious activity shall not be covered under the cyber security policy
- The willful and fraudulent act of the insured shall not be covered under the cyber security policy
- The insurance contract excludes losses caused due to electrical disturbances or mechanical failure
- The unexplained loss shall not be covered under the cyber security policy
Claiming Process for Cyber Insurance Policy for Non-banking Financial Company
The insured is required to follow the below mentioned steps in order to file a claim under cyber security policy:
- Step 1: The insured must lodge a police complaint at the police station or cyber cell department upon noticing the incident
- Step 2: The insured is required to inform the insurer regarding the cyber threat or fraud
- Step 3: The grievance of the insured must be submitted in a written form to the insurer
- Step 4: The insurer shall appoint an investigator
- Step 5: A cyber expert shall also be deployed in case of the seriousness of the cyber offence
- Step 6: The investigator shall verify the event and furnish a report to the insurance company
- Step 7: The insurance company shall either admit or reject the claim on the basis of the report submitted by the investigator
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