Drone
Insurance

Drone Insurance pays for the repair/replacement cost for the physical damages of your drone due to a crash. It also pays the penalties and other associated costs when your drone crashes on the property of any other individual or physically injures him/her.

As a drone insurance buyer in India, it is critical for you to understand your drone usage and the benefits of the policy.

Commercial drone pilots need drone insurance. A pilot caught flying an uninsured drone for commercial purposes is liable to pay penalties and fines.

Commercial drone insurance policies vary between providers, but mostly include personal/public liability cover protecting a pilot from claims made by a third person. Additionally, it includes covers such as Drone Damages, Third-party Liability, damages to the Payload Cameras & Lidars, Drone Delivery & BVLOS operations and Transit Cover

The use of drones also known as Unmanned Aerial Vehicles (UAV) or Remotely Piloted Aircraft Systems (RPAS) have increased significantly over the last couple of years. Businesses are now using UAVs for commercial purposes including Crop Science, Mapping, Filming, Photography and Surveillance to name a few and are using such technology to advance their services. DGCA & Ministry of Civil Aviation has recognised the considerable growth in this sector and the risks associated with the use of UAVs/ Drones and have mandated Drones Insurance for any Flight Operations in India. Technically, everyone with a drone needs to have Third-Party liability insurance, to protect themselves from financial losses which arise due to a claim from anyone on whom your drone has crashed.

However, an object with a weight of around 10 kgs and falling from a height of 200 metres would have immense kinetic energy and acceleration. This could cause unfortunate damages upon landing. A Drone could crash even if it is being flown by the most experienced pilot. This could be due to a malfunctioning battery or a faulty rotor blade. Therefore, it is important to get drones insured and get covered against financial damages.

Drone insurance covers physical damages to a drone, or claims made when the drone may have accidentally damaged a third person or his/her property. For instance, if a drone accidentally lands on a third person’s car- the insurance policy not only pays for the damages that happens to the drone but also covers the damages that the drone may have caused to the car.
In Partnership with India’s leading insurance providers, namely- TATA AIG, Bajaj Allianz and National Insurance, TropoGo has developed a Tailor Made Drone insurance for India and Indian Drone Ecosystem to cover third party liability, physical loss and/or damage and premises, products and hangar keepers liability for commercial UAV operators.
It usually covers:

• Drone hull insurance for physical damage to the machine, cameras, sensors and control stations
• Aviation third party legal liability insurance for drones and flight models
• Cover for aerial system, remote control and additional equipment (e.g. camera, surveying equipment)
• Flight accidents
• Damage by direct impact of lightning strike, landslide, earthquake, rock - fall, high water, flooding, hail, avalanches, snow pressure, storm, fire and explosion
• Theft, robbery and unauthorized use by persons outside the company

A Third-party is an unrelated person in a drone operation. This person could be any random person on the street or a house owner from the neighbourhood. Any damages that happen to this “third person” or to his/her property due to your drone operation is covered under Third-Party Liability Insurance.

Purchasing the lowest cover is enough to comply with the law and suitable for most fliers. It is however recommended that commercial drone operators consider higher value third-party covers. Claims arising due to serious damages to a third party can be high and basic cover may not be sufficient. Such situations are likely and may pose a significant financial risk to commercial drone operations and profitability.

An accidental damage insurance provides coverage if you lose or damage your drone aircraft.

To make a purchase for this insurance, you have to opt for a comprehensive policy available on the TropoGo website or app. This policy not only covers your accidental damages but also protects you from third-party damage claims.

Any attached payload (cameras, sensors) to the drone can be more valued as compared to the value of the drone itself. The payloads can be insured by purchasing an additional endorsement. Therefore, it is recommended to specify the payloads attached to the drone while purchasing the damage insurance.

Drone insurance offers a lot of benefits to fliers and businesses -

• Pilot error
• Accidental damage
• Loss of data link
• Fly away
• Accidental loss
• Mechanical failure
• Bird strike
• Loss of power
• Weather
• Theft

The premium of drone insurance typically costs in the range of 0.5 to 10% of the sum insured. Factors that decide the premium are -

• Type of drone insurance
• Age of the drone
• Type, size and features of drone
• Original price of the drone and current perceived value
• Type of drone operations for which the insurance is being purchased
• Flying location and conditions
• Pilot’s flying experience and claim history
• Hours of intended operation

As is the case with all types of insurance, timely renewal of your drone insurance is vital. Missed renewals lead to legal compliance issues and financial risks that arise due to non-coverage. In the event of an unfortunate incident during a non-coverage period, claims raised will not be honored by the insurer.