Cyber Insurance – A Risk Mitigation Tool for Cyber Risk in India

Abstract

The disruptions in cyberspace, can emanate from both natural events as well as through human accidental and intentional interventions. These man-made cyberspace disruptions are more onerous, and are occurring with increasingly alarming frequency, intensity and viciousness.

The ‘e-space’ ecosystem in India has undergone humongous transformation during the last few decades. This paradigm shift demands that platforms on which these are built are tamperproof, and the user-edifices that control them, should be citizen-friendly, user-transparent and free of all types of vulnerabilities, any of which, if overlooked or mutualized, will portend enormous credibility crises having, financial social and ethical consequences particularly in a democracy.

This paper is an attempt to trace the vulnerability of India and her citizens to cyber-crime, explore the potential effects, and examine whether the risk of cyber-crime can be managed reasonably, with the insurance as an effective Risk Transfer Medium, inter alia, with various Public-Private Partnership measures to combat this ever-present threat.