What Does Cyber Insurance Cover?Financial Fraud: Unauthorized transactions, phishing, email spoofing — up to full sum insured.Identity Theft: Legal fees, credit monitoring, and restoration costs if someone misuses your identity.Cyber Stalking/Bullying: Legal expenses and psychological counseling costs.Malware/Ransomware: Data recovery costs and ransom payments (for businesses).Social Media Hacking: Account recovery, reputation management, financial losses from compromised accounts.IT Theft: Replacement costs for stolen laptops, phones with data breach implications.Individual vs Business Cyber InsuranceFeatureIndividual PlanBusiness PlanCover Range₹1-10 Lakh₹10 Lakh - ₹50 CroreOnline Banking Fraud✓✓Data Breach Liability✗✓Ransomware Payment✗✓Third-Party Lawsuits✗✓Regulatory Fines✗✓Annual Premium₹1,000-5,000₹25,000-5,00,000+⚠ Warning: India's Digital Personal Data Protection Act (2023) imposes penalties up to ₹250 Crore on businesses for data breaches. Without cyber insurance, a single breach can destroy a company financially.Top Cyber Insurance Providers in IndiaBajaj Allianz: Individual Cyber Safe — ₹1-5 Lakh cover, starts ₹1,200/year.HDFC ERGO: Cyber Sachet — ₹50,000-1 Crore, affordable for individuals and SMEs.ICICI Lombard: Cyber Risk Insurance — comprehensive business coverage.Tata AIG: Cyber Guard — covers online banking fraud, identity theft, phishing.Common Cyber Attacks in India (2024)UPI Fraud: Fake payment requests, screen sharing scams, QR code manipulation.OTP Phishing: Caller pretending to be bank staff to steal OTP.SIM Swap: Criminals duplicate your SIM to access banking OTPs.Business Email Compromise: Fake emails from CEO/CFO directing fund transfers.Ransomware: Encrypting company data and demanding Bitcoin payment.Frequently Asked QuestionsDoes cyber insurance cover crypto theft?

Most policies in India do not cover cryptocurrency theft as crypto is not legally recognized as currency. Some global insurers offer crypto-specific riders, but these are rare in India.

Is cyber insurance tax deductible?

For individuals, no specific tax deduction exists. For businesses, cyber insurance premiums are fully deductible as a business expense under Section 37(1) of the Income Tax Act.

Cyber Insurance in India 2025: Protect Yourself from Online Fraud & Data Breaches

By Admin • Feb 23, 2026 • 📖 4 min read • ✅ Updated Feb 24, 2026

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Insurance & financial content specialist at PolicyBaazar. Helping Indians make informed insurance decisions with expert analysis and unbiased reviews.

📅 Published: Feb 23, 2026 🔄 Updated: Feb 24, 2026 📖 820 words ⏱️ 4 min read

Cyber Insurance in India 2025: Protect Yourself from Online Fraud & Data Breaches

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