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 willfully 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 D, because all four benefits are typically covered under individual cyber insurance policies in India, alongside loss of funds.

• Statement 1 (correct): Restoration of the computer system after malware disrupts access is a standard first-party expense covered under data and system restoration.
• Statement 2 (correct): Replacement of hardware damaged by a cyber attacker is covered as a loss caused by a cyber event. The insured must prove the malicious act, which is why the question says 'if proved so'.
• Statement 3 (correct): Cyber extortion cover includes the cost of a specialist consultant to handle the threat and limit the loss.
• Statement 4 (correct): Legal defence costs against third-party claims, for example from a person whose data was leaked through the insured's device, fall under the liability section of the policy.

The core concept is the split between first-party cover (your own losses) and third-party cover (liability to others). Mains GS3 on cyber security and digital financial inclusion often asks why individuals need such products when UPI and net banking are widely used. Policy wording and sub-limits vary by insurer, so always read the schedule of benefits.

Trap: Aspirants assume cyber insurance pays only for money stolen and reject statements 1 to 3 as 'device or service costs'. Read each statement against the policy categories.