Insurance for online fraud coming to India

This is the time of uncertainty. We want get insured for almost all the things like life, health, vehicles, stock, property and so on. So what’s about frauds especially online fraud? There is a big rise in online frauds in recent times. So National Payments Corporation of India (NPCI) is planning to provide insurance for these kinds of transactions.

In this context, NPCI will tie up with General Insurance for providing insurance which called Request for Proposal (RFP). This insurance will cover up both domestic as well as international transactions which are done by swiping a card, PIN- based transactions on ATMs or points of sale and e- commerce transactions with two- step authentication.

There is very hard to get money back in the financial cyber-fraud as according to data, 41% of the people who lost their money with cyber-fraud didn’t get a penny returned. So this is a big thing to worry as people want to shop online and cyber-fraud is always a big threat to them.

There are many advertise issued by web like what to do and what not to do in respect of online purchasing but technology gives immense power to hackers too to have a one step ahead.

The NPCI insurance cover will be over and above any policy taken by a member- bank. The policy will cover compromised and disputed transactions carried on the National Financial Switch (which facilitates inter- bank ATM transactions) ATM Network. It will also cover disputed transactions on the NFS Network. The RFP issued by NPCI is to identify and appoint the general insurer for providing insurance cover for fraudulent transactions that result in financial loss to the customers of NFS members or sub- members; also for non- bank ATM operators.

In the case of disputed transaction with debit or credit card, the responsibility is with the customer to prove he is not at fault.  As long as he doesn’t prove, the responsibility belongs to him.

The best way to escape this is opt for debit or credit card with zero-liability features which is provided by big players like Visa and MasterCard. Rupay card will also provide this feature at the yearend as per official statement.
Tags-insurance for online fraud,insurance for cyber fraud,cyber fraud insurance
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About Nitin Aggarwal

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