Drone Insurance Policy
Context: Recently, various companies such as HDFC Ergo, ICICI Lombard, Bajaj Allianz, and Tata AIG and public sector companies such as New India Assurance have launched its unmanned aircraft system insurance. Key Highlights
• Insurance players are now offering drone coverage within the framework set by the Insurance Regulatory and Development Authority of India (IRDAI)
• The ‘New India Unmanned Aircraft System (UAS/ UAV/ RPAS/ Drone) Insurance’ will cover large aircraft to solo flying gliders. Coverage will be offered to drone owners, operators, and manufacturers
• The product provides a diverse option of over 15 different add-on covers for customers to pick and choose from. These add-on covers are designed as per the drone industry’s requirements.
• The policy covers physical damage to the aircraft and its theft. It also provides cover for accidental physical injury to the third party and/or damage to their property due to the aircraft’s operations.
• The policy is designed to cover fixed wing, rotor wing and hybrid UAS that can be controlled remotely (with pilot intervention) or autonomous drones (without pilot intervention).
These aircraft are generally deployed for military and non-military applications, including surveillance, geography and infrastructure inspections and aerial photography
Third-party liability coverage will cover legal liabilities like bodily damage or property damage claims to third parties arising out of the usage and operation of drones
Drone market in India
• India’s potential: Drones and allied component industries can boost India’s manufacturing potential by approximately $23 billion by 2030.
• Market size: India’s drone manufacturing industry crossed annual sales of Rs 60 crore in FY 2021 and is expected to grow to Rs 900 crore by FY 2024.