In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits?

1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer.

2. Cost of a new computer if some miscreant wilfully damages it, if proved so.

3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion.

4. Cost of defence in the Court of Law if any third party files a suit.

Select the correct answer using the code given below:

The correct answer is 1, 3 and 4 only.

Cyber insurance policies designed for individuals in India generally focus on covering financial losses, legal liabilities, and expenses arising from cyber-related incidents and digital threats, rather than physical damage to hardware. Here is a step-by-step breakdown of why each benefit is covered or excluded:

1. Cost of restoration of the computer system in case of malware (Covered):
If malware or ransomware infects an individual's computer, causing disruption or data loss, cyber insurance policies typically cover the cost of hiring technical experts to clean, restore, or reinstall the operating system and software to its pre-attack state. Therefore, statement 1 is correct.

2. Cost of a new computer if some miscreant wilfully damages it (Not Covered):
Wilful physical damage to hardware by another person falls under physical property damage or malicious damage, which is traditionally covered under standard home insurance or property insurance policies, not cyber insurance. Cyber insurance strictly covers intangible digital assets, system recovery, and financial losses resulting from cyberattacks. Therefore, statement 2 is incorrect.

3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion (Covered):
In situations like ransomware or digital extortion (where extortionists threaten to leak personal data or lock systems), policies cover the professional fees of specialized security consultants or negotiators to manage, mitigate, and resolve the threat. Therefore, statement 3 is correct.

4. Cost of defence in the Court of Law if any third party files a suit (Covered):
If a third party sues the policyholder for claims such as accidental transmission of malware, data breach, or defamation (invasion of privacy) originating from the insured's system, the policy covers the legal defence costs and court expenses. Therefore, statement 4 is correct.

Consequently, since statements 1, 3, and 4 represent standard coverage features while statement 2 is excluded, the correct option is "1, 3 and 4 only".