In early 2024, Hyundai Motor India suffered a serious data breach. Sensitive information about customers—like names, addresses, phone numbers, and vehicle details—was stolen. Similarly, Paytm, one of India’s biggest digital payment platforms, faced a hacking attempt. The hackers demanded ₹10 crore, threatening to reveal important data by 2029. These cases show how cybercrime is becoming a huge problem in India, and it’s something we can’t ignore.

A Growing Need for Cyber Protection

Why Cyber Protection is Needed Cybercrime is growing rapidly, and it’s putting both businesses and individuals at risk. No matter how careful we are, criminals often find ways to trick us. In India, many people don’t fully understand how digital fraud works, which makes them easy targets.

Cyber-attacks can happen in many forms—phishing emails, ransomware, data breaches, and identity theft. Sometimes, it’s as simple as clicking on a fake link or giving an OTP to the wrong person. Hackers can even take control of social media accounts to trick friends and family into making payments. The danger is real and widespread, and everyone needs protection.

The Government Steps Up

Government Action Seeing the rise in cybercrime, the Indian government has taken action. In 2024-2025, the government increased the budget for cybersecurity from ₹400 crore to ₹759 crore, showing how urgent the issue is. The Securities and Exchange Board of India (SEBI) also introduced new rules to improve cybersecurity across the financial sector, making things safer for everyone.

In the digital lending space, the Digital Lenders Association of India (DLAI) created a “fraud repository.” This system helps fintech companies catch and prevent fraud more easily, adding another layer of protection.

The Role of the Digital Personal Data Protection (DPDP) Act

The Digital Personal Data Protection (DPDP) Act The DPDP Act strengthens India’s data protection laws. Under this new law, businesses must protect personal data, and if they fail, they can face heavy fines. This makes cyber insurance even more important, as companies have more to lose if they are hit by a cyber-attack or data breach.

Why Cyber Insurance is Essential

Why Cyber Insurance is Important With cyber threats growing, the demand for cyber insurance is increasing in India. What was once a niche product is now essential for both businesses and individuals. A study by Deloitte found that India’s cyber insurance market, worth around $50–60 million in 2023, is expected to grow by 27–30% every year over the next five years.

Cyber insurance offers several key benefits:

1. Recovery Assistance: It helps businesses bounce back quickly after a cyber-attack, reducing downtime and financial loss.
2. Damage Coverage: Cyber insurance can cover losses from cyber incidents, helping businesses stay financially secure.
3. Expert Help: It gives access to professionals like forensic experts, lawyers, and public relations specialists who can contain the situation and reduce harm to the company’s reputation.
4. Quick Response: The first 48 hours after a cyber-attack are critical. Cyber insurance ensures that businesses get expert help during this time.

Cyber Insurance for Everyone Cyber insurance isn’t just for big companies anymore. With cyber threats affecting businesses of all sizes—startups, government agencies, schools, and even individual consultants—everyone who handles sensitive data needs protection. Whether it’s phishing, ransomware, or identity theft, the risks are everywhere. As the digital world grows, so does the need for cybersecurity.

Future of Cyber Insurance in India

The Future of Cyber Insurance in India As businesses continue to go digital and use new technologies like artificial intelligence, cyber threats will evolve. This will push more companies to get cyber insurance to protect themselves from financial and reputational damage. One trend is the rise of small, affordable cyber insurance products, making it easier for individuals and small businesses to get coverage.

India’s cyber insurance market is at a turning point. With more digital transactions and government services going online, there’s a growing need for strong cybersecurity. The Deloitte report warns that AI-driven threats and more advanced cyber-attacks will make cyber insurance a key part of any business’s risk management strategy.

Conclusion

The rising cost of cybercrime, shown by the data breaches at Hyundai and Paytm, highlights the need for better cybersecurity and the importance of cyber insurance. In today’s digital world, no one is safe from cyber-attacks. Businesses, organizations, and individuals must act now to protect their data and assets. Cyber insurance, combined with stronger cybersecurity, is essential for staying safe in the future.

Author: Rahul Agarwal, Founder and CEO, Ideal Insurance

Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinions or policies of ObserveNow Media. The author is solely responsible for ensuring the accuracy, completeness, and validity of the information presented, encouraging readers to independently verify and seek professional advice if needed.