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Under the Space Activities Bill (pending enactment) and the current IN-SPACe regulatory framework: (1) Commercial satellite operators must maintain third-party liability cover as a condition of IN-SPACe launch authorisation. (2) NSIL launch contracts for PSLV, GSLV, and SSLV commercial missions include insurance requirements for both the launch vehicle operator and the satellite owner. (3) Satellite financing from SIDBI, Exim Bank, or private venture capital/debt lenders requires insurance on the satellite asset as a financing covenant. (4) India is a signatory to the Liability Convention (1972), which establishes state liability for damage caused by its space objects — making government-backed third-party liability cover essential for all Indian-registered satellites. (5) The cost of space insurance has declined significantly over 2020–2025 as the global space insurance market has expanded capacity, particularly for LEO SmallSat missions.
| Phase | What It Covers | Key Risk | Typical Cover Limit | When Placed |
|---|---|---|---|---|
| Pre-Launch (SCPD) Satellite Construction & Pre-Delivery |
Satellite during manufacture, integration, testing, and transportation to the launch site | Factory fire, handling damage, test anomaly, faulty component, transit loss | Replacement cost of satellite (typically USD 20M–400M) | At contract signing / start of manufacture |
| Launch Insurance Launch Vehicle Flight Insurance for PSLV, GSLV, SSLV |
Period from ignition through separation from the launch vehicle and initial orbit acquisition | Launch vehicle failure, upper stage anomaly, fairing separation failure, orbit insertion error | Full satellite replacement value + launch costs | 6–12 months before launch; bound at L-30 days |
| In-Orbit Insurance Ongoing coverage for satellites once they are operational |
Satellite once operational in its final orbit — covering partial or total loss from in-orbit anomalies | Solar panel failure, thruster anomaly, battery degradation, software fault, space debris impact | Agreed value (typically 80–100% of replacement cost) | From successful orbit acquisition, renewed annually |
| Third-Party Liability Satellite Third-Party Liability Insurance |
Damage caused to third-party satellites, property, or persons by the insured satellite or debris from it | Space debris collision, uncontrolled re-entry, interference with other satellite orbits | USD 100M–500M per occurrence (state liability treaties) | Throughout all mission phases |
| De-Orbit Insurance Satellite De-Orbiting Insurance |
Costs and liability associated with controlled de-orbiting and re-entry disposal at end of life | Uncontrolled re-entry causing ground damage, failure to de-orbit per ITU/UN guidelines | Bespoke; typically USD 50M–200M | Arranged before end-of-life operations begin |
GSAT-6A (2018): ISRO’s GSAT-6A communications satellite experienced a power system failure shortly after launch and was lost. Had commercial insurance been in place at the satellite’s USD ~120 million replacement cost, the insurance payout would have covered a significant portion of the rebuild investment. • PSLV-C37 — Record 104-Satellite Launch (2017): The single most significant rideshare insurance event in Indian history — 104 satellites on a single PSLV required coordinated insurance for dozens of international CubeSat operators, each with separate insurable interests. • Indian NewSpace EO Startup (2024): A Bengaluru-based Earth Observation startup launching two SAR satellites on PSLV required launch insurance, in-orbit cover, and third-party liability for their investor syndicate — TropoGo structured the programme with Lloyd’s capacity within 6 weeks of engagement.
Satellite insurance — also called space insurance India — protects satellite owners, operators, and investors from financial losses arising from satellite failure during manufacture, launch, or in-orbit operations. Cover types include: (1) Pre-launch (SCPD) insurance during manufacture and transport; (2) Satellite launch insurance covering failure of the launch vehicle (PSLV, GSLV, SSLV, commercial rockets); (3) In-orbit insurance providing ongoing coverage for satellites once they are operational; (4) Satellite third-party liability insurance for damage caused to other satellites or property; (5) Space debris liability insurance; (6) Satellite transponder insurance for specific transponder revenue losses; and (7) Satellite de-orbiting insurance for end-of-life disposal. TropoGo structures all phases under a coordinated programme.
The difference between pre-launch and launch insurance is the phase of the satellite mission covered. Pre-launch insurance (also called SCPD — Satellite Construction and Pre-Delivery) covers the satellite from the start of manufacture through factory testing, transportation to the launch site, and integration with the launch vehicle — before ignition. Launch insurance covers the period from ignition of the launch vehicle (for PSLV, GSLV, or SSLV) through successful separation, orbit acquisition, and initial signal check — typically ending 30–60 days after launch (the Launch Plus Early Orbit Phase). After successful orbit acquisition, in-orbit insurance takes over to provide ongoing coverage for satellites once they are operational.
In-orbit insurance provides ongoing coverage for satellites once they are operational in their final orbit, covering partial or total loss from in-orbit anomalies — solar array failure, thruster malfunction, attitude control system failure, battery degradation, space debris impact, or electronic system failures. It is typically structured as an annual agreed-value policy renewed throughout the satellite’s design life (5–15+ years for GEO satellites, 5–7 years for LEO constellations). The policy pays the agreed insured value on a total loss, or a proportionate partial loss payment for capacity reduction. In-orbit policies are renewed each year and premium rates typically decrease as the satellite ages and passes through its higher-risk early operational years.
SmallSat / CubeSat insurance covers small satellites (1–500 kg) and nanosatellites on rideshare missions — the primary mission type for Indian NewSpace startups. It differs from large satellite insurance in several ways: (1) Smaller sums insured (USD 500K–USD 30M vs USD 50M–USD 400M for large GEO); (2) Rideshare risks — the CubeSat shares a launch vehicle with dozens of other payloads, requiring coordination with other satellite owners’ insurance; (3) Often shorter mission lives (1–5 years vs 15+ years for GEO); (4) Higher per-unit rates due to less engineering heritage data; (5) Constellation batch policies covering multiple satellites launched simultaneously. TropoGo specialises in SmallSat / CubeSat insurance for Indian NewSpace companies.
Space debris liability insurance covers the liability of a satellite operator if their satellite becomes debris — either through a fragmentation event, collision, or failure to de-orbit as required by ITU/UN COPUOS guidelines — and that debris causes damage to another operator’s satellite. Under the 1972 Liability Convention (to which India is a signatory), India as the launching state bears absolute liability for damage caused by Indian-registered space objects on the ground and fault-based liability for damage in orbit. IN-SPACe is expected to formally require space debris liability insurance as a condition of launch authorisation under the forthcoming Space Activities Act. TropoGo recommends space debris liability cover as a standard component of all Indian satellite programmes.
The cost of space insurance for an Indian NewSpace startup depends on satellite value, launch vehicle, orbit, and mission design. Indicative rates: Launch insurance on PSLV (proven vehicle): 4–8% of insured value — so for a USD 10M satellite, USD 400K–USD 800K. Launch insurance on a new Indian private rocket (first flights): 10–20% of insured value. In-orbit insurance for a LEO SmallSat: 0.3–1.0% of insured value per year. Third-party liability (USD 100M limit): approximately USD 200K–USD 500K per year. A complete programme for a USD 5M CubeSat mission (launch + 3 years in-orbit + TPL) typically costs USD 300K–USD 600K in total premiums. TropoGo obtains competitive quotations from multiple Lloyd’s syndicates and global space insurers.
Satellite transponder insurance covers the loss of revenue from specific transponders on a communications satellite when those transponders fail in orbit — without necessarily constituting a total loss of the entire satellite. A GEO communications satellite may have 40–72 transponders, each generating significant contracted revenue. If a cluster amplifier or transponder unit fails, reducing capacity by 10–30%, the satellite hull policy may not pay (as it is not a total or constructive total loss), but the operator suffers a real revenue loss. Satellite transponder insurance fills this gap, covering the specific revenue-generating transponders independently of the overall satellite hull. This is particularly relevant for Indian DTH operators, VSAT service providers, and telecom companies leasing GSAT transponder capacity.
Fill in the “Get a Satellite Insurance Quote” form on this page or call +91 7439 324 645 with your mission details — satellite name, orbit type (LEO/GEO/MEO), launch vehicle, intended launch date, insured value, and cover required. TropoGo’s space insurance specialists will prepare a mission summary for submission to global space insurance markets (Lloyd’s syndicates, AXA XL, Global Aerospace), obtain competitive quotations, and structure a programme that meets your investor, lender, and IN-SPACe regulatory requirements. For most SmallSat and CubeSat missions, an indicative quotation can be provided within 5–10 working days. For large GEO satellite programmes, allow 4–6 weeks for a full market submission and comparative analysis.
