Delhi High Court orders protection of insurance company's customer information after data breach

The Delhi High Court recently directed various online platforms including Telegram to ensure blocking of accounts linked to an anonymous user who had threatened to leak the customer data of Niva Bupa Health Insurance [Niva Bupa Health Insurance Company Limited v. Telegram FZ-LLC & Ors.]..Justice Manmeet Pritam Singh Arora passed the order on the insurance company's suit seeking protection of its confidential data.Disclosure of the sensitive and confidential customer data can be highly damaging to both the insurance company and its customers, the Court said."The plaintiff has pointed out that publication, sale or misuse of the data can result in identity theft, financial fraud, privacy violations and unauthorized transactions. The data can be misused for a variety of purposes including for the purpose of impersonating the plaintiff, which would also involve infringement of the plaintiff’s registered trademark and passing off. Such damage cannot not be compensated in terms of money especially since defendant No.7 in an unknown entity," it added..The Court thus proceeded to restrain the unidentified entity from using, copying, sharing, distributing, transmitting or disclosing the insurance company's confidential information through any means or platform.Further, it directed Telegram and other internet-based platforms to take all necessary steps to remove or disable any accounts, content, domains, emails, or phone numbers using the insurance company's name, likeness, mark to leak its confidential information.The Court also directed intermediaries to disclose all available details of the unidentified entity..In the suit, Niva Bupa Health Insurance Company said it had received an email from an anonymous entity claiming that it has accessed a large portion of the company's sensitive customer data. The email also contained a sample of the data with a threat the user information would be leaked if the insurance company refused to agree to its demands. The attacker not only communicated with the company through a Telegram account but also messaged it on its website. The insurance company told the Court that elaborate security measures were put in place by it but it seemed that the same were breached..The Court issued summons on the suit and listed the matter for hearing on January 10, 2025. .Senior Advocate Pradeep K Bakshi and advocate Kushagra Pandit assisted by a team from White & Brief Advocates & Solicitors including Partner Mohit Bakshi and Associate Akshaja Singh appeared for Niva Bupa Health Insurance.Advocate Madhav Khosla represented Telegram while advocate Ekta represented another defendant in the case. .[Read Order]