Protect your Data, Reputation, and Revenue from Cyber Attacks
For Individuals and families
For Business
Both
Cyber Insurance: Defending Your Digital Life and Business
Cyber insurance is a vital safeguard in today’s digital-first world, protecting individuals and businesses from the growing threat of cyberattacks, data breaches and online fraud.
According to the Telangana Cyber Threat Report 2025, the State recorded 62,52,023 malware detections (an average of 17,128 per day), 17,505 ransomware attacks (about 47 per day), and over 1,23,465 cybercrime cases in 2024. These incidents included identity theft, impersonation, business and investment fraud, UPI fraud, and other forms of digital crime. This emphasises the vulnerability of individuals and businesses in the digital world.
These figures reflect just one State. And across the country, cyber risks are significantly higher. TATA AIG offers Cyber Insurance policy options with the Cyber Risk Protector policy for businesses and the CyberShield policy for individuals, offering protection against a wide range of digital threats and related losses.
From data recovery and legal expenses to crisis management, our cyber security insurance covers financial losses and also offers counselling support beyond just financial impact.
Cyber Insurance Meaning: What is Cyber Insurance?
Cyber insurance is a type of insurance policy designed to protect individuals and businesses from financial losses arising from cyber attacks, data breaches, and other online threats.
For individuals, cyber security insurance covers losses arising from unauthorised use of bank accounts, credit or debit cards, and mobile wallets. It also covers E-reputation loss due to cyberbullying or defamation events (repeated online harassment and harming someone’s reputation), data recovery costs, and other cyber-related risks. It also covers extortion threats, where someone demands money by threatening to harm your computer system if the payment is not made.
Key Features of TATA AIG Cyber Insurance
TATA AIG CyberShield for Retail Users (Individuals, Students, Families, Professionals)
| Multiple Plan Options for Individuals and Groups/ Families | Coverage for Digital Theft and Data Recovery |
|---|---|
| Digital Theft of Funds (bank accounts, credit/ debit cards, mobile wallets) and Data Recovery (data restoration costs, legal defence costs, investigation costs and extortion money). |
| Coverage for E-Reputation Loss and Extortion Threat | Optional Cover |
|---|---|
Cyber Bullying or Defamation Event and Data Extortion (for professional fees to remove online material, legal defence costs, counselling costs, lost wages, and extortion money). |
|
| Option of Monthly or Annual Plan | Cyber Security Insurance Coverage |
|---|---|
|
|
Types of Cyber Insurance for All
TATA AIG offers two types of cybersecurity insurance plans.
TATA AIG CyberShield
TATA AIG CyberShield is designed exclusively for individuals and families. It offers extensive coverage against various digital risks and recovery-related expenses, including digital theft of funds, data restoration, counselling services, and more. You can choose between monthly and annual plans.
There are two plan options under TATA AIG CyberShield:
- Plan A - Digital Theft of Funds Covers financial losses due to theft of funds resulting from hacking of your bank account, credit or debit cards, or mobile wallets by a third-party.
- Plan B - Comprehensive Plan
Covers digital theft of funds, losses due to cyber bullying or defamation events, expenses incurred to restore lost, altered, corrupted, or destroyed data and to clean and restore your computer system after a cyber incident, and more.
TATA AIG Cyber Risk Protector
TATA AIG Cyber Risk Protector is designed for business organisations. It offers coverage for a wide range of cyber risks, including data breaches, network security failures, and liabilities arising from third-party claims. We will discuss the extensive coverage and optional add-ons offered under this cyber insurance policy in the following sections.
Who can buy a Cyber Insurance policy?
Cyber insurance is for anyone who uses digital platforms or handles online data. It can be purchased by individuals and businesses.
Individuals
Individuals who use online banking, UPI, and digital wallets, and retired individuals who keep their retirement funds in banks, need cyber insurance.
Students
Students who rely on digital services for research, projects, and savings for future education need a cyber insurance policy as a safeguard against online risks.
Families
As families use multiple devices for online banking, shopping, and social media, cybersecurity insurance is required for protection against various digital risks.
Why do you need a Cyber Insurance policy?
Rising Risk of Unauthorised Transactions
The increased use of UPI, credit or debit cards, and mobile wallets has led to a rise in unauthorised transactions in online banking. According to a survey conducted by LocalCircles in 2025, 1 in 5 families with a UPI user have experienced fraudulent actions at least once in the past three years. Cyber insurance helps in covering your financial losses and related recovery costs.
Increased Exposure due to Digital Usage
From shopping online to social media and entertainment, daily digital activities increase exposure to phishing, hacking, and identity theft. According to the same survey, 40% of the UPI users who faced online fraud said it happened because they accidentally clicked on a fraudulent payment link. Cybersecurity insurance offers protection against such online threats.
Risk of Data Loss
Incidents such as hacking and malware on personal devices can lead to loss or misuse of personal data. Cyber insurance helps in these risks and covers the recovery costs.
How does Cyber Insurance work?
Choice of Policy
Individuals and families can compare the different policy options, features, and optional extensions to choose and buy a suitable cyber insurance policy.
Raising a Claim
In the event of a cyber incident, you inform TATA AIG about the incident and register a claim.
Document Submission
Submit the required documents to support the claim, including bank statements, screenshots, and complaint reports.
Claim Investigation
Our claim experts will investigate the case, verify the details, and evaluate the extent of the loss.
Claim Settlement
Once the claim and documents are reviewed and approved, the claim is settled as per the policy terms and conditions. This includes financial losses, legal assistance, and counselling support.
Cyber risks covered under TATA AIG Cyber Insurance policy
Digital Theft of Funds: Covers losses due to theft of funds arising from hacking of your bank account, credit/ debit card, or mobile wallets by a third party. It also covers legal defence costs and minimum balance charges from the bank due to the theft of funds.
E-Reputation Loss or Extortion Threat: Covers loss due to cyberbullying or defamation events. This includes professional fees for removing online material, counselling expenses, lost wages, and legal defence costs. In case of an extortion threat, the extortion loss is reimbursed.
Data Recovery: Covers expenses incurred to restore lost, altered, corrupted, or destroyed data and to clean and restore your computer system due to a cyber incident. It also covers extortion loss due to a data extortion threat.
Media Liability: Covers defence and legal liability costs arising from defamation, breach of copyright, title, trade name, or breach or interference of privacy rights resulting from media activities.
Cyber risks not covered under TATA AIG Cyber Insurance policy
Retroactive Date : Any loss occurring prior to the retroactive date mentioned in the policy is not covered.
**Dishonest or Improper Conduct : **Any dishonest, criminal, or deliberate conduct by you is not covered.
Bodily Injury and Property Damage : Any physical injury, sickness, or disease, emotional distress other than due to cyber bullying or defamation, and loss or destruction to tangible property are excluded.
**Business or Professional Activities: **Any activities carried out by you for business or professional purposes are excluded.
**Intellectual Property and Trade Secrets : **Losses due to infringement of trade secrets, patents, trademarks, or other intellectual property are excluded unless they are specifically covered under an add-on.
Government Authority: Losses due to confiscation, demand, or destruction due to a government order are excluded.
Non-Fiat Currency: Any loss or made due to cryptocurrencies or other currencies that are not issued by the government are not covered.
**Outage Loss : **Any failure, degradation, or outage of infrastructure or related services of third-party providers, such as telecommunication, cable, and electricity, is not covered.
Expenses Incurred before Claim Intimation : Expenses incurred prior to the notification of a claim are excluded.
Insolvency : Bankruptcy, liquidation, or insolvency of an issuing bank or mobile wallet provider is not covered.
War : Losses arising due to war or warlike activities are not covered.
Add-ons under cyber insurance
Identity Theft
This add-on applies to identity theft, which refers to unauthorised use of your personal information. It covers lost wages for up to 7 working days, costs incurred for credit monitoring services and identity monitoring, and counselling costs up to actual incurred costs or up to 15 hours, whichever is less.
Family Cover
This add-on allows you to extend the coverage available under the cyber insurance policy to your family. It helps in protecting them against cyber risks such as identity theft, online fraud, and misuse of personal information.
Why choose TATA AIG Cyber Risk Protector Insurance?
- Exclusive Cyber Insurance Plans
TATA AIG offers distinct and exclusive cyber insurance plans for different needs: TATA AIG CyberShield for individuals and families, and TATA AIG Cyber Risk Protector for business users.
- Comprehensive Cyber Risk Coverage
Our cybersecurity insurance covers a wide range of cyber risks, such as digital theft of funds, identity theft, extortion threats, data breaches, data recovery, and more.
- Protection beyond Financial Loss
We extend our support beyond covering financial losses to cover additional expenses, such as legal costs, counselling services, and recovery support.
- Customisable Plan Options
You can determine the cyber insurance policy option and coverage limits based on your individual digital exposure or business risk assessment.
- Additional Protection with Optional Add-ons
You can enhance protection with optional add-ons such as multimedia liability and network interruption coverage for broader financial security.
- 24/7 Customer Support
Our dedicated customer support team is available 24/7 for any product or claim-related queries.
- Seamless Claim Settlements
You can experience a streamlined and efficient claim settlement process designed for quick and hassle-free resolutions.
How to claim a Cyber Insurance policy?
Report the Incident Immediately
- Inform TATA AIG about the claim as soon as possible. Share complete details of the loss, such as theft of funds, E-reputation loss, extortion threats, or third-party claims under media liability.
- In case of theft of funds, inform us within 72 hours of the incident.
- Contact the TATA AIG helpline: 022 6489 8282 or use the contact details mentioned in your policy document.
Cooperate with our Claim Experts
- Cooperate with our claim experts to help them assess the cyber incident and the extent of loss.
- Provide accurate and complete information related to the incident.
Gather the Required Documents
- Copy of FIR
- Bank Statements
- Proof of ownership for the affected computer system.
- Proof that the compromised personal data belongs to you.
- Copies of legal notice or court summons, if applicable.
- Copies of invoices for expenses claimed under the policy.
- Copies of invoices for advisor or specialist service providers.
- Details of costs for filing a claim for damages against a third party, if applicable.
Claim Submission
- Submit the completed claim form and the required documents.
Claim Settlement
- TATA will review your claim and supporting documents.
- Once the claim is approved, the eligible expenses will be reimbursed to you.
What happens if you do not have Cyber Insurance
- Financial Loss
If you frequently use online banking, credit or debit cards, or mobile wallets, a cyber incident such as hacking can lead to significant financial losses.
- No Legal Support
Taking legal action for the loss can be expensive. Without a cyber insurance policy, you may have to pay the consultation fees and related costs.
- Pay for the Data Recovery Costs
If your personal data is lost, altered, corrupted, or destroyed, you will need to pay for data recovery costs.
- Mental Stress from unresolved Cyber Issues
Incidents like cyberbullying, online harassment, or defamation can cause severe stress. Any counselling support required would also have to be paid for out of pocket.
The Role of Cyber Insurance in Cyber Defence
Whether you’re running a small startup or managing a large enterprise, cyber threats can hit when you least expect them. The good news? You don’t need a huge budget to build a strong line of defence. A few smart practices can go a long way in protecting your business from data breaches, downtime, and financial losses.
Protection against Financial Loss
Covers financial losses arising from online fraud, identity theft, cyberbullying, and misuse of personal data.
Provides Access to Support Services
Extends financial support to access legal assistance, counselling support, data restoration, and reputation management when a cyber incident occurs.
Last Line of Defence
Acts as a safety net when preventive measures such as antivirus software and secure passwords fail.
Common cyber security threats
Cyber threats are now a daily reality for businesses, and even a small mistake can lead to major consequences. Understanding the most common types of cyber attacks helps you stay alert and prepared.
Phishing
Fake emails or messages that appear to be from your bank, a delivery service or even a coworker. They trick you into clicking a link or sharing sensitive information like passwords or credit card numbers. For example, it can be a fake job offer.
Identity Theft
A cyber incident or hacking of your bank account, credit or debit card, or mobile wallets to commit fraud or make unauthorised transactions in your name.
Ransomware
A type of cyber attack that locks your system or files and demands payment to restore access. Due to such an attack, a business's data becomes unreadable overnight, and the only way to get it back is by paying the hacker.
Malware
Short for “malicious software,” it’s like a digital infection. It sneaks onto your device through downloads or malicious links and can steal data, spy on you, or slow down your system.
Social Media Fraud
Fake profiles or investment scams often target individuals and families to trick them for sending money or sharing sensitive information.
Cyber bullying or Online Harassment
Repeatedly harass, threaten, or misuse personal information or photos. This can lead to emotional distress and legal issues.
Data Breaches
Unauthorised access to confidential information, such as employee, customer, or business data, due to hacked accounts.
Insider Threats
Security risks that come from within, such as employees accidentally clicking on malicious links or intentionally leaking sensitive data.
Social Engineering
When hackers trick people, not systems, like calling your office pretending to be IT support to get a password.
How to Minimise Internet Security Risks?
Use strong and unique passwords : Try to create complex passwords for every account and change them regularly. Enable multi-factor authentication wherever possible.
Keep your devices updated : Ensure to update your computer systems regularly to fix security issues.
Protect your devices : Use reliable antivirus software, firewalls, and secure Wi-Fi networks to safeguard your devices from cybersecurity threats.
Be very cautious online : Avoid opening suspicious emails, links, or attachments. While sharing personal or financial information, always verify the source.
Back up your data regularly : Set a regular schedule to back up important data to prevent complete data loss in case of a cyber incident.
How to Choose the Right Cyber Insurance Policy for Your Needs?
- Assess potential threats
Identify the cyber risks you may face, such as identity theft, online fraud, and cyberbullying, based on your digital usage.
- Determine coverage
Based on this analysis, determine the level of coverage to protect against these risks. Also, consider the need for counselling support that might be really important for you.
- Compare options
Compare the available plan options based on the coverage and benefits offered, and decide on a policy that will best meet your specific requirements.
- Explore add-ons
Explore the optional add-ons and choose them if you require additional protection under the cybersecurity insurance.
- Evaluate premium
Check the premium for the selected coverage and ensure it provides adequate protection at a cost that fits your budget.
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