Leading company directors have rejected the Labor government’s proposal to impose a ban on cyber ransom payments, arguing that in the case of life or death, or faced with the threat of catastrophic damage to infrastructure, such outlays may be justified.

Mike Wilkins, chairman of Medibank, Australia’s largest health insurer which last year suffered a massive ransomware attack, said that while the company had not paid the criminals, he would not rule out agreeing to a ransom.