There is a lot of activity in India’s young drone insurance business. Following in the footsteps of HDFC Ergo, ICICI Lombard, Bajaj Allianz, and Tata AIG, the public sector New India Assurance has introduced unmanned aircraft system insurance.
Insurance companies are now giving drone coverage under the guidelines established by the Insurance Regulatory and Development Authority of India (IRDAI).
The ‘New India Unmanned Aircraft System (UAS/ UAV/ RPAS/ Drone) Insurance,’ according to the company, would cover anything from huge aircraft to solo flying gliders. Drone owners, operators, and manufacturers will all be covered.
“The product offers clients a varied selection of over 15 different add-on covers from which to chose. These add-on covers are designed to meet the needs of the drone industry. The coverage covers both physical damage to the aircraft and theft of the aircraft. It also covers unintentional bodily injury to a third party and/or damage to their property caused by the aircraft’s activities,” according to New India.
The policy is intended to include fixed-wing, rotor-wing, and hybrid unmanned aerial systems (UAS) that may be operated remotely (with pilot interaction) or autonomous drones (without pilot intervention). According to New India, these aircraft are primarily used for military and non-military purposes such as surveillance, geography and infrastructure surveys, and aerial photography.
The insurance coverage provided for damage to the drone and the payload it carries will cover the replacement or repair, unintentional loss or damage to the UAS resulting from the risks covered, including disappearance if the UAS is not reported after the start of Flight.
According to Bajaj Allianz, third-party liability coverage will cover legal liabilities such as bodily harm or property damage claims to third parties stemming from the use and operation of drones.
According to a recent EY-FICCI analysis, ‘Making India the Drone Hub of the World,’ drones and adjacent component businesses can improve India’s manufacturing potential by $23 billion by 2030. The paper emphasised the importance of creative and competitive manufacturing capabilities, as well as a robust action plan, to assist India in becoming a worldwide centre for drone production by 2030. It also emphasised the significance of developing manufacturing, attracting investments, and enabling exports.
“India’s drone manufacturing business achieved annual sales of Rs 60 crore in FY 2021 and is predicted to expand to Rs 900 crore by FY 2024,” said Neerja Kapur, Chairman and Managing Director of New India. Initially, the Director General of Civil Aviation (DGCA) provided coverage for drones within visual line of sight (VLOS) and throughout the day. The regulator, however, altered the criteria to provide coverage beyond VLOS. In February 2021, the insurance regulator IRDAI requested that insurers provide drone insurance coverage.
Drones are categorised as “aircraft” globally, and aviation officials have moved in to control the business. The Government of India enacted policies (Drone Policy 1.0, 2018 and Drone Policy 2.0, 2019) that prompted the DGCA to issue regulations – Civil Aviation Regulation CAR 1.0, 2018 and, most recently, Draft Unmanned Aerial Vehicle Systems, 2020.
What exactly is Drone Insurance? It is a complete insurance policy that protects a drone’s loss, damage, or theft. It covers the drone’s cargo, any connected cameras or equipment, and any third-party obligations resulting from harm caused by the drone to a counterparty.
At Truoosh, we’re here to help you navigate this overwhelming world of stuff. All of our market picks are independently selected and curated by the editorial team. All product details reflect the price and availability at the time of publication. If you buy something we link to on our site, Truoosh may earn commission.
