Cyber Insurance for Non-banking Financial Company

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: 

• 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: 

• 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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