'Compensation for failure to protect data' is contained in which Section of…
2022
'Compensation for failure to protect data' is contained in which Section of the Information Technology Act, 2000?
Answer: B. Section 43 A — ConceptWhen identifying a statutory provision, match the legal effect named in the question with the Act chapter that governs it. Compensation provisions…
- A.
Section 40 A
- B.
Section 43 A
- C.
Section 66 A
- D.
Section 66 F
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Correct answer: B
Concept
When identifying a statutory provision, match the legal effect named in the question with the Act chapter that governs it. Compensation provisions impose civil liability for loss or harm, whereas offence provisions define prohibited conduct and punishment.
Application
The phrase ‘Compensation for failure to protect data’ is the heading of Section 43A of the Information Technology Act, 2000. It imposes compensatory liability on a body corporate that is negligent in implementing and maintaining reasonable security practices for sensitive personal data or information and thereby causes wrongful loss or wrongful gain.
Contrast
Section 40A prescribes duties of a subscriber of an Electronic Signature Certificate.
Section 66A dealt with offensive messages sent through communication services and was struck down by the Supreme Court in 2015.
Section 66F defines and punishes cyber terrorism.
Result
Therefore, the relevant provision is Section 43A.