Scammed on UPI? Bank Won't Refund You! Why You Need 'Cyber Insurance' to Cover Phishing & QR Frauds
You get a call from a "Bank Manager" asking you to update your KYC. You share the OTP. Within seconds, ₹50,000 is wiped from your account via UPI.
You rush to the bank, but they say: "Sorry, sir. You shared the OTP/PIN yourself. Under RBI guidelines, this is 'Gross Negligence'. We are not liable."
You are devastated. But if you had a Cyber Insurance Policy (which costs less than a large pizza), you could have claimed that ₹50,000 back.
In Digital India, your phone is your wallet. Here is why Cyber Insurance is the new "Life Insurance" for your bank balance in 2026.
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| Why You Need 'Cyber Insurance' to Cover Phishing & QR Frauds |
1. The "Bank Liability" Myth
Most Indians believe the RBI Ombudsman will save them. The truth is harsh.
RBI circulars state that if the loss is due to the customer's negligence (like sharing OTP, clicking a phishing link, or scanning a QR code to "receive" money), the bank has Zero Liability.
Since 95% of scams involve tricking you (Social Engineering) rather than hacking the bank's server, the bank legally owes you nothing.
2. What Does Cyber Insurance Cover?
A good Cyber Insurance policy (offered by insurers like HDFC Ergo, Bajaj Allianz, ICICI Lombard) covers:
- Theft of Funds: Reimburses money stolen via Phishing, Vishing (Voice phishing), or Sim Swapping.
- Identity Theft: Pays for legal fees if someone takes a loan in your name using your PAN.
- Restoration Costs: Covers the cost of IT experts to restore your hacked computer or mobile.
3. The "Social Engineering" Clause (Crucial)
This is where most people get rejected. Standard/Basic policies often say "We don't cover voluntary transfers."
You must ensure your policy specifically covers "Social Engineering Fraud." This covers situations where you were manipulated or tricked into sending money yourself (e.g., the classic "KYC Update" scam). Without this specific add-on, standard policies might pay ₹0.
4. The "FIR" Requirement: No Police Report, No Money
Buying insurance is step one. Filing a claim requires step two.
If you are scammed, you MUST file an FIR (First Information Report) or register a complaint on the National Cyber Crime Portal (Call 1930) immediately (usually within 24-48 hours).
Warning: Insurance companies will reject your claim 100% if you do not attach the FIR copy. They need proof that it was a crime, not just you spending money.
5. How Much Does It Cost?
It is shockingly cheap compared to the risk.
- Coverage: ₹1 Lakh
- Annual Premium: Approx ₹700 - ₹1,200 (varies by add-ons)
For just ₹100 a month, you protect yourself from losing your hard-earned savings to a Jamtara scammer.
Don't Trust, Just Insure
You lock your house. You lock your car. But you leave your UPI wallet exposed.
Scammers are getting smarter with AI voice cloning. You will make a mistake eventually. Buy Cyber Insurance today, and remember to dial 1930 the moment you sense fraud.
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