Financial Daily from THE HINDU group of publications
Thursday, Nov 24, 2005
Financial Daily from THE HINDU group of publications Thursday, Nov 24, 2005 |
|
|
|
|
|
|
|
Home Page
-
Security Info-Tech - General Insurance `Cover against cyber crimes vital' — Insurance industry seeks tighter IT Act, tools to assess losses Our Bureau
Mumbai , Nov. 23 COMPANIES in India need to spruce up their security policies and buy insurance against cyber crime. With a vast number of transactions being conducted online, insurance would be integral to protection against cyber crime, say experts. Mr Vijay Mukhi, Chairman, e-security initiative, Natioanl Association of Software and Services Companies, said there were several kinds of software by which it was now easy to hack into systems and crack passwords. With several transactions being conducted online, it would be important for sectors such as banking and other financial services to purchase insurance, Mr Mukhi said. He was speaking at a conference on "Cyber security threats and the insurance industry". "Currently, sectors like banking still function as closed user groups. In time, as business will move online as is the global practice, they will be faced with the urgent need to increase security and buy insurance," he said. In the US, $100 million is paid as premium annually to cover cyber risks, while the claims paid out amount to $14 billion. Insurance is purchased to cover business interruption due to loss of data, cyber extortion and terrorism. In India, liability insurance covers to protect against cyber risks are purchased mainly by companies in the IT industry, which are listed in the US. According to Mr Rakesh Maini, Head, Market Research, Sahara India Life Insurance, the Information Technology Act needed to be tightened, as business losses from cyber crime were mounting. "The Act should give legal authority to the insurance company to inspect the computer of the victim as well as the perpetrator in order to assess the claims", he said. The quantification of losses in the case of cyber crimes is another issue for the insurance industry. Mr R. Chandrasekaran, General Manager, GIC, said currently insurance companies did not have the authority to examine evidence which in turn made it difficult to assess losses. Besides, there was little information about how cyber crimes were committed to design comprehensive policies and assess the premium, he said.
Related Stories:
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page More Stories on : Security | General Insurance
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|