The requirement for insurance against online fraud is climbing steeply and likely to spike further after the private data protection laws are set up. Having paid heavily to cyber attacks such as the only on Cosmos Co-operative Bank, lenders are purchasing high insurance pay. When many private sector banks are including $10-50 million, one public sector bank purchased a pay of about $100 million.
The number of cases will also be on the upswing. Last year, around 3,000 online banking frauds took place in India. Based on industry estimates, one cyber attack occurs every 10 minutes with most cybercrimes documented in Maharashtra and Uttar Pradesh.
"Indian companies are increasingly viewed picking for cyber protection to receive facets like forensic expenses, cyber extortion expenses, and other first-party expenses covered," explained Manoj Kumar AS, senior vice-president, Global Insurance Agents. "There has been a growth in the number of policies by almost 25% cumulatively over the previous four decades and we expect this amount to move up by another 30% post implementation of Personal Data Protection Bill."
The duties of this proposed bill by Justice BN Srikrishna will result in the data liability cover with firms taking decent cyber risk cover and improving the present ones, experts feel. The ministry of information technology recently published the Personal Data protection Bill of 2018 in line with the European Union's GDPR. "The bill has come in the right time of major international events such as the recent violation by a British consultancy firm, the WannaCry and Petya attacks, banking info theft and in the advent of strong global privacy laws," said Kumar.
"While the bill will take the pure course of time in terms of becoming an Act, the current iteration of the invoice mostly showcases the intent and powers of the government with regard to privacy in India and also to place stiff obligations on Indian entities. The enactment of this bill would lead to a major effect on the present cyber insurance ecosystem throughout the country," he added.