The Role of Cyber Insurance in Indian Insurance Industry

The economic development of the country is possible when the nation takes the responsibility to perform and accountability to check the functions performed by it in a responsible manner. Digitalization means the process of integration of converting any information in e-format with the help of developed technologies. It changes the business model along with the digital technologies. In this era of digitalization there is a possibility of higher level of transparency because of digital economy. But along with the benefits of digitalization, there is a possibility of cyber risk. When the digital data is accessed by any unauthorized source with the objective of making harm to the individual, group or any company directly or indirectly, physically or mentally by using any modern telecommunication network it becomes cyber-crime. Nation’s financial health and security can badly affected by it. So for the purpose of cyber security information technology act has been passed in the year 2000. The cyber laws are there as a mechanism to give punishment to the person who made a cyber-crime. Cyber insurance is a mechanism which secures the victim of cyber-crime by mitigating and providing the coverage against the losses arising out of cyber risk or cyber insecurity or cyber-crime. IT Act 2000 provides security against cyber-crime by punishing a criminal and IRDA provides mechanism for coverage of loss by cyber insurance. This paper will helps to understand the role of cyber insurance and awareness of it in the era of digital economy among the participants. This is a fundamental research along with the secondary data sources. I am doing this research to create an awareness regarding cyber insurance in the present scenario.