What Is Cyber Insurance? Coverage, Benefits, and Why Indians Need It Now
As more everyday activities move online — from banking and shopping to education and work — cybercrime in India is growing at an alarming pace. Fraudsters are increasingly using social engineering, data misuse, and impersonation techniques to target individuals and families, making digital safety a serious concern rather than an afterthought.
India’s digital ecosystem has expanded rapidly over the last few years. According to data from the National Payments Corporation of India (NPCI), December 2025 alone recorded over 21.6 billion digital transactions worth nearly ₹28 trillion, reflecting how deeply digital services are now embedded in daily life.
However, this convenience comes with risk.
Cyber Fraud Losses Have Tripled in a Year
Government data highlights the seriousness of the situation. Figures from the National Cyber Crime Reporting Portal (NCRP) and the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) show that cyber fraud losses in India jumped from ₹7,465 crore in 2023 to ₹22,845 crore in 2024 — a staggering 206% year-on-year increase.
This sharp rise indicates that cybercrime is no longer limited to tech-savvy attacks. Ordinary users are now among the most frequent targets.
Why Cyber Insurance Is Gaining Importance
On the occasion of Data Privacy Day, SBI General Insurance highlighted the growing importance of protecting personal data in an increasingly digital world. As dependence on online platforms grows, cyber insurance is emerging as a critical layer of protection, offering both financial and practical support when cyber incidents occur.
Unlike traditional insurance, cyber coverage focuses on digital risks that can directly impact personal finances, identity, and mental well-being.
Key Benefits of Cyber Insurance Explained
Here are some of the major protections offered under modern cyber insurance policies:
Identity Theft Protection
Covers financial losses caused by identity theft, including unauthorised use of personal information and fraudulent transactions. It also supports legal action to help restore the victim’s digital identity.
Protection Against Financial Theft
Covers losses resulting from unauthorised access to bank accounts, credit cards, debit cards, and digital wallets, along with legal costs involved in pursuing cybercriminals.
IT Support & Data Recovery
Reimburses expenses for IT specialists who investigate cyber breaches, restore lost data, and secure compromised devices, helping users recover faster.
Psychological Support
Recognising that cybercrime can be emotionally distressing, some policies include professional counselling to address stress, anxiety, or trauma caused by cyber incidents.
Loss of Income Coverage
Provides compensation for wage loss directly linked to identity theft, helping individuals maintain financial stability during recovery.
Family Coverage
Cyber insurance protection can often be extended to immediate family members, ensuring household-wide digital safety.
SBI General’s Cyber VaultEdge: A Holistic Approach
SBI General Insurance’s Cyber VaultEdge policy is designed to offer end-to-end support throughout the recovery process. The coverage spans multiple cyber risks, including data breaches and cyber extortion, aiming to provide both financial security and peace of mind.
The policy is positioned to meet the evolving challenges of today’s digital environment, helping individuals and families navigate online spaces with greater confidence.
About SBI General Insurance
Founded in 2009, SBI General Insurance is one of India’s fastest-growing private general insurance companies, backed by the State Bank of India (SBI). The company has expanded from 17 branches in 2011 to 146 branches nationwide.
In FY 2024–25, SBI General Insurance reported a Gross Written Premium (GWP) of ₹14,140 crore, registering 11.1% year-on-year growth. The insurer has received several industry recognitions, including multiple awards at Insurance Asia Awards, Mint BFSI Summit, and ET NOW BFSI conclaves.
With a workforce of over 9,000 employees and access to more than 22,000 SBI branches, the company serves customers across retail, corporate, SME, and rural segments through both digital and physical channels.
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Source: Press Release by NewsVoir
Disclaimer: This article is based on a syndicated press release from NewsVoir. TechMitra has edited and optimized the content for clarity, readability, and SEO. All facts, claims, and data are the responsibility of the source organization.
