IRDAI ramps up efforts to bring drone insurance products to the market

NEW DELHI:  The rapid rise in the number of people owning and using unmanned aerial vehicles or drones, the Insurance Regulatory and Development Authority of India (IRDAI) is ramping up efforts to extend sufficient insurance protection to drone-related incidents. 

In a circular sent to insurance companies earlier last week, the IRDAI urged all general insurance companies to launch covers for mishaps related to remotely piloted aircraft systems (RPAS) or drones. The regulator noted in its circular that only a few general insurers in India are currently offering coverage for drones. 

“Considering the unique characteristics of drones that differentiate them from other aircraft and taking into account the phenomenal growth in the usage of drones for multiple purposes, there is a need to augment the current insurance availability customized to the requirement of drone owners and operators,” the circular pointed out. 

With the use of drones steadily rising, the regulator had constituted a working group which eventually produced a template policy that can be used by insurance companies wishing to offer such a product. “The filling of the said product may be carried out at the earliest to respond to the new and quickly growing market,” IRDAI’s circular added. 

The template has several types of cover that general insurance firms may offer in their product. These include a third-party cover that will indemnify the insured against legal liability for third-party civil claims arising out of the use of the drone.  

The cover also has protection against accidents, with the regulator saying that the policy indemnify the insured for bodily injury sustained while operating drones. “The company shall pay the sum assured in the event of bodily injury resulting in the death of the insured within 12 months,” it said.