What is a Drone insurance policy?
Drone insurance covers your drone against loss, damage or theft when operated by a licenced pilot or authorised individual. It also offers coverage for third-party liability, helping you pay for any accidental injuries to people or damage to property caused by your drone.
Additionally, a drone insurance policy provides benefits for the operator, including coverage for accidental death and medical expenses if the operator is injured while flying the drone.
Who needs drone insurance in India?
Under the Drone Rules 2021, the Directorate General of Civil Aviation (DGCA) has made it mandatory to have drone insurance (Remotely Piloted Aircraft Insurance) in India. This means that if you are using a drone for commercial work, you are required by law to have a commercial third-party liability insurance policy. All drone operators, service providers and pilots using drones for business purposes must have drone insurance.
Drone insurance – inclusions
A drone insurance policy covers the following:
- Accidental damage to drone
- Loss or theft of the drone
- Third-party liabilities, including bodily injury and property damage
- Protection of drones during transit
- Cyber liability risks associated with drones
- Protection for drones against cyber threats, including hacks or data breaches
- Coverage for legal expenses arising from drone-related incidents or claims
Drone insurance – exclusions
The following are the exclusions of a drone insurance policy:
- Losses resulting from wear and tear or gradual deterioration
- Drone damage caused by mould, rot, fungus, vermin or infestation
- Claims arising from failure to comply with authority guidelines
- Intentional or deliberate damage to the drone
- Damage resulting from improper maintenance or user error
- Losses that occur while the drone is being operated by an unlicensed pilot
How drone insurance shields you from accidental damages and third-party claims
Here’s how drone insurance shields you from accidental damages and third-party claims:
- Coverage for theft and loss: If your drone is stolen or goes missing during flight or while stored, a drone insurance policy comes to your rescue. It provides financial compensation to replace your drone or cover the loss, giving you peace of mind in case something unexpected happens.
- Coverage for third-party liabilities: This coverage protects you if your drone causes harm to others. If your drone accidentally injures a person or damages someone’s property, the insurance will cover the medical costs or repair expenses. Additionally, it shields you from legal claims and lawsuits that may arise from such incidents, helping you manage both financial and legal risks.
- Legal expense coverage: If you are sued after an accident involving your drone, legal expenses can quickly drain your savings. However, drone insurance covers the cost of legal defence, including lawyer fees and court costs, ensuring you are not financially burdened in the event of a legal dispute.
- Cyber liability coverage: Some drone insurance policies also offer protection against cyber risks, such as hacking or unauthorised access to your drone’s systems and data. This coverage is crucial if your drone is remotely compromised, ensuring that you are covered for potential data breaches or security threats. It helps mitigate the risks of cyberattacks, which are becoming more common in drone operations.
- Protection during transit: If you are transporting your drone from one location to another, insurance protects against accidental damage during transit. Whether the drone gets damaged while being moved or transported in a vehicle, this coverage ensures you are financially covered for any incidents along the way.
Conclusion
Drone insurance is an important coverage that protects you from unexpected costs. It helps cover repair expenses for your drone or any damages it causes to others, so you don’t have to worry about paying out-of-pocket. With the right coverage, you can fly your drone with confidence without stressing over what might go wrong. Moreover, if you are undertaking commercial operations, having a commercial third-party liability drone insurance policy is mandatory. Drone insurance India is an essential safeguard to ensure you are protected from financial risks.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.