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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Cyber Crimes and Investigation Procedures

Aarav Fintech Pvt Ltd holds customers' sensitive personal data on its own servers. Negligence in maintaining reasonable security practices leads to a leak causing wrongful loss to a customer. What is the consequence under Section 43A?

The company is liable to pay damages by way of compensation to the affected customer. Section 43A applies where a body corporate handling sensitive personal data is negligent in maintaining reasonable security practices and thereby causes wrongful loss or wrongful gain to a person.

  1. AThe company is liable to pay damages by way of compensation to the affected personCorrect
  2. BThe Director General of CERT-In must be imprisoned for one year
  3. CThe company is automatically disqualified from using digital signatures
  4. DThe customer must first obtain a Magistrate's permission under Section 526 of the BNSS

Explanation

Section 43A makes a body corporate that is negligent in implementing and maintaining reasonable security practices, and thereby causes wrongful loss or gain, liable to pay damages by way of compensation to the person affected. The other options are not consequences under that section.

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