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IRDAI instructions to insurance companies on deletion of exclusions related to Genetic Disorders from mediclaim/health insurance policy and for consideration of claim

20 Mar 2018
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In one Mediclaim Hon’ble High Court of Delhi observed that Health Insurance Policy exclusionary clause related to ‘Genetic Disorders’ is too broad, ambiguous and discriminatory violating Article 14 of the constitution of India. Hence on the direction of High Court, IRDAI has on 19-03-2018 instructed all the Insurance companies that no claim in respect to existing health insurance policies shall be rejected based on exclusions related to ‘Genetic Disorder’. Further, it is also directed to the insurance companies not to include ‘Genetic Disorder’ as one of the exclusions in new health insurance policies in respect to all the existing products and also in new products launched and/or filed with IRDAI

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24 Jan 2018
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CYBER LOSSES AND ITS SOLUTION-CYBER INSURANCE:

On 27 th June 2017 “Not Petya” Cyber attack had caused significant direct financial loss and business interruption loss to dozens of firms. “Not Petya” is a destructive virus that spread quickly across computer networks, crippling computers by encrypting hard drives so that machines cannot run. The attack caused massive disruptions to the industrial networks that rely on computers.

Among the affected firms the MERC & CO was one who suffered a massive loss. The company has not yet fully quantified its loss but they are insured against the Cyber Loss and it is estimated that Insurers could pay $275 million to cover the insured portion of drug maker Merck & co’s loss from this cyber attack. The magnitude of its uninsured losses is not been disclosed. This shows the severity of the overall loss to one company from a single cyber attack and the extent protected by Cyber Insurance Cover.

Cyber Insurance Policy typically covers expenses stemming from a data breach such as forensics and data restoration among the other costs. Coverage also helps to pay for business interruption expenses when a breach or malware attack shuts down a company’s website.

Cyber Insurance Policy also protects companies against extortion like ransomware attacks. It covers the investigation cost and also pay the ransom. Cyber Insurance Policies also covers the cost of notifying those whose data has been breached, hiring a PR agency to address reputational damage and arranging credit monitoring for those affected, as well as potential legal suits.

For the Industrial Networks that rely on computers, the most imaging solutions for their business protection is CYBER INSURANCE,

Losses arising from Cyber Attacks tend to fall into two categories. ‘First Party’ losses and ‘Third Party’  losses. First party losses consist of costs/losses directly incurred by the company as a result of the cyber attack e.g. cost incurred in connection with business interruption, privacy notifications, public relations efforts, forensic investigations, restoration of data and ransom/extortion payments. Third party losses are liability losses and include defence costs and indemnity payments in connection with customers’ claims for damages including defence cost and regulatory investigation.

CYBER INSURANCE IS NOT WIDELY USED OUTSIDE UNITED STATES BUT GETTING POPULARISED IN ALLOVER THE WORLD INCLUDING INDIA. WITH THE INCREASING E-BUSINESS AND USE OF COMPUTERS AND ONLINE WORKS, IT IS VERY IMPORTANT TOOLS FOR THE RISK MANAGEMENT OF YOUR FIRM.

 

POST SOURCE: www.reuters.com

 

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