IRDAI mulls basic standard policy for cyber attacks

  IRDAI has formed a working group, to examine the need for standard cyber liability insurance products. Observing that cyber attacks are on the rise with a number of high-profile data breaches amid the Covid-19 pandemic, IRDAI  said cyber security is the “most important need” for all sectors today to address the numerous risks posed by cyber attacks. The general liability policies do not cover cyber risks, and cyber cover products currently available are highly customised for clients. “Hence, it is felt that a basic standard product structure is required to provide insurance cover for individuals and establishments to manage cyber risks,” IRDAI said in a circular. The panel will study various statutory provisions on information and cyber security to evaluate critical issues involving the legal aspects of transactions in cyberspace. It will also examine the various types of incidents involving cybersecurity in the recent past and possible insurance coverage strategies for those, and the cyber liability insurance covers available in the Indian market and in other developed jurisdictions. The working group will submit its report within two months.