Social media liability insurance protects you from online frauds

India is a leader when it comes to social media consumption. Sample this: There are around 346 million Facebook users in India and YouTube accounts for 325 million monthly active users in India. As of January 2021, according to estimates, there were 448 million social media users in India. And this wave will continue to rise with estimates predicting around 1.5 billion users by 2040.

With the rise of smartphones and Internet services, the digital wave has reached almost every nook and corner of the country. But with an increased reach comes greater responsibility, as one cannot ignore the risks arising from the use of these social media platforms. Not to mention we often come across videos and photos going viral with many ending up in defamation suits. “We all are connected to the digital world of mobile banking, social media and online transactions. This leads to a significant amount of individual data getting generated, transmitted and stored. While technology comes with huge advantages it also brings a few risks. The risks involved sensitive personal data getting compromised,” said Suvendu Prusty, co-founder and director, Riskcovry.

Therefore, given the rise in digital transactions, particularly after Covid-19 when every brand seems to be leveraging on their digital transformation, the risks associated with such transactions has increased manifold. This is where cyber insurance or social media liability may come to your rescue at the time of need.

What is the social liability policy?

While cyber insurance cover is quite popular at the corporate level, not many are aware that any individual above 18 years of age can buy the policy. These policies are suitable for brands, individual users, especially influencers and bloggers. The policy offers a wide range of protection varying from identity theft, cyber stalking , malware/phishing, e-mail spoofing, media liability to cyber extortion cover.

What does the policy indemnify for? “The policy indemnifies for defence cost as a result of any claim by the affected party. Costs incurred for the prosecution of a criminal case under The Information Technology Act 2000 (No 21 of 2000), and or any other applicable law prevalent in India including the relevant provisions of the Indian Penal code against a third party for identity theft of the insured from a legitimate social media account by a cyberattack,” said Prusty.

The policy also covers reasonable expenses incurred on transportation for attending court summons and photocopying of documents. It also reimburses you for counselling services for stress or anxiety a victim of a cyber-attack goes through. A few of the major players in the segment are Bajaj Allianz General Insurance Company and ICICI Lombard General Insurance.

Premium cost

These are affordable policies with a sum insured depending on the cover sought by you. Here the age of the insured does not affect the premium rates.“While the sum insured for the cover ranges from Rs 1 lakh to Rs 1 crore, the premium for this policy is quite affordable and ranges from Rs662 – Rs 8933 (excluding GST) approximately depending on the sum insured opted and is the same across all ages,” T A Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance told Money9.

Claim process

If you become a victim of cyber fraud then you should immediately inform your insurer first. Thereafter, for filing a claim, Prusty said, you need to submit a list of documents to be submitted to the insurer in the event of a loss:
• Fully completed and signed claim form
• Copy of FIR lodged with police authorities / cyber cell
• Copies of legal notice received from any affected person/entity