Here's what expert says about cyber insurance and why you need it

Even as we are all battling the coronavirus pandemic, I hear there has been a rise in cyber frauds. I have already installed anti-virus software. What will cyber insurance protect me against? Will one policy cover only my laptop, or even other devices in the house, like my mobile, spouse’s mobile, standard desktop, child’s iPad, etc.?

Cyber cover for individuals is indeed the need of the hour, especially in these times when most people are working from home, as it means prolonged exposure to technology, and hence to possible cyber risks. 

Typically, a cyber insurance policy covers all cyber threats impacting an individual arising out of any of the devices he uses that are connected to the internet, or any network, which includes his phone, laptop and common devices like the home desktop or a smart home device. It covers risks such as identity theft, malware attack and cyber stalking. It covers financial losses resulting from being an innocent victim of e-mail spoofing, phishing, IT theft and cyber extortion. 

The policy also covers losses and expenses related to defence and prosecution cost related to identity theft, and cost incurred on retrieving or reinstalling data or computer programme damaged by the entry of a malware. Expenses incurred on counselling services, claim for damages against third party for privacy breach and data breach, loss due to cyber extortion, and transportation for attending Court summons are also covered by this policy. Just as health insurance has become a necessity, so has cyber insurance, in this digital era.

Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance

What is the waiting period for pre-existing diseases? Is there an IRDAI law in this regard? If while buying a policy I unknowingly did not declare a medical condition because I wasn't aware of it, and the pre-existing period is over, will the claim pass through?

According to the IRDAI guidelines released in September 2019—Standardisation of Exclusions—there are standard definitions for pre-existing diseases. According to this circular, the maximum waiting period for pre-existing illnesses is four years. Every product in the industry has a specific waiting period for pre-existing disease, within the framework of the standard definition. 

If there was non-disclosure while buying the policy, your insurer will review the nature of the non-disclosed information, and then decide the admissibility of a claim or whether to continue the policy, based on its underwriting guidelines. 

It is imperative for anyone buying a health insurance policy to disclose all requisite information required by the insurer in order to have a smooth claim experience. However, an insurance company may consider a genuine case on merit.

My mother is a cancer survivor. She had stage one uterine cancer two years ago. She is 67 years old. What is Pradhan Mantri Suraksha Bima Yojana? Can I buy it for her? 

Pradhan-Mantri Suraksha Bima Yojna (PMSBY) is an accident insurance scheme provided by the Government of India which protects the insured against death or permanent total disability due to an accident. Every citizen of India who falls between the age group of 18 and 70 years and has a bank account can get enrolled under PMSBY. You can enrol your mother for this scheme, too, to provide her with additional financial protection. 

However, health-related expenses are not covered by this plan. If you are looking to provide coverage for health care or hospitalisation expenses for your mother or other family members, please approach an insurance company and get the best possible health cover for your family. Choose a policy that fits your requirements. Insurers offer a wide variety of health insurance policies, and they also have the flexibility to customise them, depending on the buyer’s needs. 

Please ensure you declare your mother’s pre-existing conditions clearly in the proposal form. This will allow the insurance company to take cognizance of them before underwriting the proposal. They will also be able to suggest the necessary medical tests before they accept the proposal.

Can I include my full-time domestic help in my family floater? I feel that in times of Coronavirus, everyone who stays in the house should have medical insurance.

Buying a health insurance policy is essential and should be a part of your financial planning, given the unprecedented increase in health concerns and also the rise in health care costs. Your desire to buy a cover for your domestic help is commendable. You can separately apply for an individual health insurance cover for your domestic help. You can choose a floater plan also if you are planning to cover all your family members as well. A health insurance policy ensures a life of dignity and gives you access to better treatment options. Just ensure that Coronavirus-related treatment is covered by the insurer you opt for.

The writer is MD and CEO, Bajaj Allianz General Insurance. The views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in