What is cyber insurance, and how does it cover ransomware attacks?

Cyber insurance is a policy designed to protect businesses from financial losses due to cyber threats. For ransomware, it covers ransom payments, incident response, data recovery, business interruption, and legal costs. Coverage varies by policy, so reviewing terms is essential.

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Are emergency services covered under an HMO plan?

Yes, emergency medical care is covered even if received from an out-of-network provider, but non-emergency visits to out-of-network hospitals may not be covered.

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How does guaranteed replacement cost differ from extended replacement cost?

Guaranteed replacement cost covers full replacement, even if costs exceed policy limits, while extended replacement provides a capped extra percentage.

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Does a high Claim Settlement Ratio guarantee claim approval?

No, a high CSR indicates the insurer settles most claims, but individual claims may still be rejected due to documentation errors, policy exclusions, non-disclosure of facts, or fraud. Always review policy terms carefully.

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Are TPAs regulated by any authority?

Yes, TPAs in India are regulated by the Insurance Regulatory and Development Authority of India (IRDAI), which sets guidelines for their operations, licensure, and compliance.

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What is adverse selection in underwriting?

Adverse selection occurs when high-risk individuals are more likely to purchase insurance than low-risk individuals. This can lead to financial losses for insurers. Underwriters mitigate this by carefully assessing applications, using medical exams, credit checks, and pricing strategies to balance risk.

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Does renters insurance cover natural disasters like floods and earthquakes?

Standard renters insurance does not cover floods or earthquakes. You may need to purchase separate flood or earthquake insurance policies to protect against these disasters.

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What happens to reserves if an insurance company goes bankrupt?

If an insurer becomes insolvent, reserves are used to pay outstanding claims, and state guaranty associations may step in to protect policyholders.

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