CHENNAI: In the absence of regulation, cryptocurrency exchanges in India are unable to get insurance protection against cyber risks such as ransomware attacks and business disruptions. This is mainly because the RBI, which poses a higher risk to the insurance underwriter, does not recognize cryptocurrencies. a senior executive at Future Generali India Insurance Said that the insured loss can be settled only in rupees and dollars – the currencies in which cyber insurance claims are settled. Insurers said they can come up with a definition of insured loss for this section only if a law on cryptocurrency is introduced. In ransomware attacks, hackers usually demand a ransom in bitcoin or other cryptocurrencies. Insurers pay 50-60% of the premium collected through cyber risks as a claim.
“There is no insurance underwriter in this country that has a product to cover our risks – cyber theft or ransomware attacks – with the lack of any clear regulation for accepting cryptocurrency trading exchanges, insurers do not cover us. If the exchange loses a large amount of money against the theft of ransomware, then it has to bear the loss,” said Nischal Shetty, CEO vizierX, a crypto exchange. A non-life general insurance company executive said most exchanges are international companies with a very high degree of exposure to risk. Another insurer said that insurers have placed crypto exchanges on decline lists or businesses that are excluded from coverage. Sharan NairChief Business Officer of Coinswitch Kuber, a crypto exchange, said, “There is no insurance cover in India to cover us from the consequences of a cyber attack. Even the covers offered abroad are inadequate and the exchanges have may not provide coverage for the entire crypto asset that exists.”
“There is no insurance underwriter in this country that has a product to cover our risks – cyber theft or ransomware attacks – with the lack of any clear regulation for accepting cryptocurrency trading exchanges, insurers do not cover us. If the exchange loses a large amount of money against the theft of ransomware, then it has to bear the loss,” said Nischal Shetty, CEO vizierX, a crypto exchange. A non-life general insurance company executive said most exchanges are international companies with a very high degree of exposure to risk. Another insurer said that insurers have placed crypto exchanges on decline lists or businesses that are excluded from coverage. Sharan NairChief Business Officer of Coinswitch Kuber, a crypto exchange, said, “There is no insurance cover in India to cover us from the consequences of a cyber attack. Even the covers offered abroad are inadequate and the exchanges have may not provide coverage for the entire crypto asset that exists.”
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