Liability Insurance

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Drone insurance is growing popular as many types of businesses have adopted drones.  They have become the preferred mode of delivery or photography. A drone can be an expensive equipment costing several lakhs of rupees. Hence it is important to insure your drones and several insurance companies today provide comprehensive coverage to remotely piloted aircraft or drones.

What is Drone Insurance?

It is a comprehensive insurance product that covers loss, damage or theft to the drone. It includes coverage of the drone’s payload, for attached camera/equipment, and any third-party liabilities due to any damage caused by the drone to a counterparty.

The DGCA guidelines initially offered coverage to drones within a Visual Line of Sight (VLOS) and during the day. However, the DGCA changed the guidelines to offer coverage beyond the visual line of sight. Public authorities extensively used drones for health surveillance activities in Covid-affected areas to ensure proper social distancing among communities.

Hence, Insurance companies can insure any drone used for commercial usage under comprehensive insurance under the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation (MoCA).

There is a comprehensive coverage product where the operator will be able to opt for Hull and Liability cover.

Additional Read: How does product recall liability policy work, and what does it cover?

Features and benefits offered by drone Insurance plans:

Comprehensive drone insurance covers the risks below:

  1. Hull cover:

    This covers theft, damage or loss of the drone, or its disappearance due to faulty drone operation within the scope of the policy. However, the insurance excludes loss arising due to wear and tear, and gradual depreciation of equipment over time.

  2. Payload cover:

    This offers coverage for accidental damage to equipment or the payload arising from damage to the drone while in operation. Payload could include, for instance, fertilisers that are being sprayed by the drone.

  3. Equipment cover:

    This offers coverage for spare parts, engine / motor and other equipment damaged during operation of the drone.

  4. Personal accident cover:

    This coverage is applicable for the authorised operator who sustains any physical injury which arises due to drone operation and for the occurrence of any accident.

  5. Medical insurance cover:

    The medical insurance cover is allowed for the authorised operator of the drone. The policy covers any hospitalisation due to physical injury arising due to drone operation.

  6. Third-party liability:

    This feature provides coverage for damages caused by the drone including accidental bodily injury or any damage to the property of the counterparty. Third-party liability covers consequential losses which arise out of drone operation.

  7. Add-on covers in Drone Insurance:

    There are many add-on covers, which also offer pay-per-use model of payment. These provide consumers with a holistic experience of a customised drone insurance plan which aligns with their coverage requirements.

All coverage is offered within compliance with DGCA guidelines. However, the policy does not cover any loss or Damage to an insured drone outside of the guidelines.

Additional Read : What are different types of liability insurance?

Which insurers offer drone insurance?

There are several general insurance companies which offer drone insurance in India. The prominent ones are:

  • HDFC ERGO General Insurance Company Limited:

HDFC ERGO in partnership with Tropogo offers commercial drone operators and owners drone insurance since 2019. They offer flexible, pocket-friendly insurance plans which offer ‘pay as you fly’ for authorised drone operators.

  • Tata AIG General Insurance company Limited:

TATA AIG General insurance company tied up with the Drone Federation of India (DFI) for design to provide drone insurance cover. They tailor-make drone insurance products for authorised operators within the regulatory framework laid out by IRDAI.

 

  • ICICI Lombard

ICICI Lombard offers comprehensive coverage for authorised drone operators and owners. It also offers a range of add-on covers including BVLOS (Beyond VLOS) endorsement, invasion of privacy cover, alternate hire charges, cyber liability cover, drone war liabilities etc., they offer the pay-per-use model which enables applicants to choose the right policy as per their needs.

 

  • TROPOGO

TROPOGO is a technology giant which offers this insurance cover for its authentic customers. They offer three types of plans, namely for commercial pilots which offer the flexibility of coverage for hourly, daily and monthly operation of drones, and for enterprise clients which offer coverage for unlimited flights within India with a duration between 01 months to 01 years. The coverage can be extended for up to 20 drones within a single insurance plan.

Drone insurance, as a product is at a nascent stage, it may be a while before all types of risks are identified and the products are standardised and comprehensive. Like other insurance products, it is important to compare features across offerings. Securenow is happy to provide comparisons that fit your requirements.


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