Monday, October 05, 2020

IRDAI working group suggests broad framework for insuring drones

New Delhi: A working group set up by regulator IRDAI has recommended a broad policy framework and procedure for providing insurance cover to the drone industry and also suggested various risks associated with the use of Remotely Piloted Aircraft Systems (RPAS).

The working group, set up by the Insurance Regulatory and Development Authority of India (IRDAI) in June to recommend suitable insurance products for drones, suggested various procedures to be followed and the documentation required in the event of a claim.

Among other things, the group in its report has come out with Specimen Policy Wording (Drone Insurance) which includes various definitions and covers various aspects, including legal liabilities to third party, drone hull cover, personal accident cover to operator, accidental medical cover to operator, general exclusions and general coverage.

The panel noted that the drone ecosystem is in nascent stages in India and finding more usage/applications in various sectors at a slower pace.

World over drone is classified as an ''aircraft'' and aviation regulators have stepped in to regulate the sector, though regulations for drone operations differ from country to country.

In India, insurers have started using drones in crop cutting experiments and survey of industrial units for the purpose of granting property insurance programs.

As per the report, ''drone insurance coverage'' can be broken into three sets -- physical damage/loss to drone due to various contingencies, third party liability arising due to usage of drone, and any additional coverage.

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