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Basic mistakes that can avoid your drone insurance

Posted on 23 Oct, 2023

Drone technology has revolutionized various industries, offering new perspectives and unparalleled opportunities. As drones become integral to commercial operations, safeguarding these valuable investments becomes crucial. Drone Insurance, often known as Remotely Piloted Aircraft Insurance, is designed to provide protection against a range of risks, from accidental damages to third-party liabilities. However, there are common mistakes that can void your drone insurance policy coverage, leaving you vulnerable to significant financial losses and legal liabilities.

drone insurance policy

Understanding the Significance of Drone Insurance

Drone insurance offers a safety net that not only shields your investment but also mitigates risks associated with operating these aerial vehicles. The key features of a drone insurance policy encompass coverage for accidental damage to the drone itself, protection against third-party liabilities, and compensation for bodily injuries or property damage caused by drone operations. Furthermore, adhering to the legal mandates set by authorities is mandatory.

One such legal requirement is the mandate imposed by the Drone Rules 2021, issued by the Directorate General of Civil Aviation (DGCA) in India. According to these rules, commercial drone operators must obtain third-party liability insurance before undertaking any commercial operations. This regulation emphasises the need for commercial operators to be adequately covered to protect themselves and their businesses.

Common Mistakes That Can Void Your Drone Insurance Policy:

Ignoring Legal Compliance:
Failure to comply with DGCA guidelines can have serious consequences. Operating a drone without the necessary insurance coverage can lead to penalties, legal actions, and even the suspension of operations. To avoid such outcomes, ensure you obtain commercial third-party liability insurance before initiating any commercial drone activities.

Failing to Understand Coverage Exclusions:
Every insurance policy comes with exclusions, and a drone insurance policy is no exception. Common exclusions include damages due to wear and tear, gradual deterioration, and losses arising from non-compliance with authority guidelines. Check if the insurance will offer coverage for the drone:

  • when it is in flight, for more than one operator

  • for flyaway or disappearance, during training etc

Failing to understand these exclusions can result in unexpected claim rejections. Therefore, carefully review your policy to ensure you are aware of what is covered and what is not.

Missing the Registration Deadline for Claims:
In the event of a mishap, registering a claim promptly is critical. Insurance companies often impose time limits for claim registration. Failing to report damages or incidents within the specified time frame can lead to claim denials. Always adhere to the designated time limit to ensure a seamless claim process. At ICICI Lombard, you need to register for the claim within 14 days.

Insufficient Documentation:
A solid claim relies on proper documentation. Ensure you have all the necessary documents readily available when registering a claim. This includes photographs of the damage, incident reports, and any other relevant information. Accurate and complete documentation can make the claims process quick and increase the likelihood of a successful claim.

Unauthorized Operators and Non-Compliance:
Allowing unauthorized individuals to operate your drone can nullify your insurance coverage. Authorized operators should undergo proper training and adhere to DGCA guidelines. Non-compliance with these guidelines can jeopardize your insurance coverage and expose you to avoidable risks.

Not Ensuring Proactive Risk Management:
Insurance is not a substitute for responsible drone operation. Proactive risk management practices, such as adhering to flight guidelines, performing regular maintenance, and prioritizing safety protocols, are crucial for accident prevention. Implementing these measures not only reduces the chances of accidents but also maintains your insurance coverage.

Unclear Communication with Insurer:
Maintaining transparent and open communication with your insurance provider is essential. Ensure you understand the terms, coverage limits, and exclusions of your policy. If you have any doubts or questions, seek clarification from your insurer to avoid misunderstandings that could lead to coverage gaps.

Not Ensuring Timely Policy Updates:
As your drone operations evolve, your insurance needs may change as well. Failing to update your policy to reflect these changes could leave you with coverage gaps or inadequate protection. It's crucial to keep your insurer informed about any modifications to your drone operations to ensure continuous and appropriate coverage.

In the world of drone operations, a comprehensive insurance policy is more than just a financial investment—it's a safeguard against unforeseen challenges. Ignoring legal compliance, failing to understand policy exclusions, missing claim registration deadlines, insufficient documentation, allowing unauthorized operators, neglecting risk management, unclear communication with insurers, and not updating your policy in a timely manner are all mistakes that can potentially void your drone insurance policy. By staying informed, adhering to regulations, and practicing responsible drone operation, you can maximize the benefits of your drone insurance policy and ensure a secure and thriving venture in the skies

  • Drone Insurance
  • Product Code: 2005
  • Product UIN: IRDAN115RP0006V01202021

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Drone Insurance, 1016 , IRDAN115RP0006V01202021)