UPSC CSE Prelims
Question 72
In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits?
- Cost of restoration of the computer system in case of malware disrupting access to one's computer
- Cost of a new computer if some miscreant wilfully damages it, if proved so
- Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
- Cost of defence in the Court of Law if any third-party files a suit
Select the correct answer using the code given below:
View correct answer and explanation
Correct answer: B
Correct Option: B (1, 3 & 4 only)
Explanation: Personal cyber-insurance products commonly cover malware restoration, cyber-extortion response consultants and third-party legal defence. Physical vandalism of a computer is generally a property-insurance rather than cyber-insurance loss.
Statement / Pair / Item-wise Analysis:
1. Correct - Cyber policies can reimburse restoration of corrupted systems after malware attacks.
2. Incorrect - Physical destruction of hardware by a vandal is normally excluded from cyber-specific cover.
3. Correct - Cyber-extortion expenses may include specialist negotiators or incident-response consultants.
4. Correct - Covered cyber-liability claims may include defence costs for third-party suits.
Option-wise Analysis:
A. Incorrect-includes incorrect item 2 (Physical destruction of hardware by a vandal is normally excluded from cyber-specific cover); omits correct item 3 (Cyber-extortion expenses may include specialist negotiators or incident-response consultants).
B. Correct-includes all and only valid statements/items 1, 3, 4.
C. Incorrect-includes incorrect item 2 (Physical destruction of hardware by a vandal is normally excluded from cyber-specific cover); omits correct item 1 (Cyber policies can reimburse restoration of corrupted systems after malware attacks); omits correct item 4 (Covered cyber-liability claims may include defence costs for third-party suits).
D. Incorrect-includes incorrect item 2 (Physical destruction of hardware by a vandal is normally excluded from cyber-specific cover).
Review note: Actual limits, exclusions and sub-limits depend on insurance policy wording.