Drone Insurance: Meaning, Coverage And Steps To Claim

Drones have become an indispensable part of companies as well as professional vloggers. If you have traveled to the rural sections of India or have lived in those outlines, you must have seen how drones are making the lives of farmers easier. More than 29,000 users have registered for drones, and more are expected in the coming years too.

What Are Drones Used For?

A natural question to raise is why drone technology is gaining so much spotlight. The answer is essentially that drones can perform tasks that would have been either too challenging or cost-intensive.

Remote Access

A large number of drones are used by the Indian army for surveillance at cross-border sections. Drones can easily reach and survey remote places where human accessibility is limited. Moreover, drones are also being used by army nationals for airstrikes and similar purposes.

Time-Saver

Quick commerce companies are utilizing drone technology for faster delivery of goods. While a delivery partner would be jostling through traffic to reach the customer, a drone is an aerial asset. This makes drones a hyper-convenient option to reach customers without navigating immense traffic.

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Faster Delivery

Logistics companies are using drones for faster delivery. The future of freight is slowly changing with the evolution of drone technology, as more and more logistics companies in India are adopting drone technology. Lowering last-mile delivery time and reducing transportation costs are two main reasons why logistics companies are using drones.

What Is Drone Insurance?

Drone insurance is an attempt taken by drone owners to insure their aerial assets against all forms of damage while the drones are actively operating. An insurance for drones covers all expenses related to major accidents, any physical injuries while the drones are still in transit. Drones come at a higher cost because of high utility, hence protecting them with insurance becomes crucial. Let’s know the insurance coverage for drones now.

What Does Drone Insurance Cover?

Here are the coverage details for drone insurance:

• Accidental damage to drones while they are in transit
• Physical injury and property damage to third-party
• Coverage for theft
• Coverage for cyber liability risks
• The cost incurred for transporting the most damaged segments of the drone
• Reimbursement for the wages paid to fix the most damaged part
• Emergency expenses for forced landing (this is subjected to a sub-limit of 10% of insurance)

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What Are The Exclusions of Drone Insurance?

• No coverage for wear and tear
• No coverage for gradual degradation in quality or depreciation
• No coverage for rot, mold, fungus, or any infestation damage
• Excluding all expenses for non-compliance with state authority on drone purchase
• Attempted or actual theft of your drone with your consent
• Mechanical or electrical breakdown Note that as per IRDAI policy, there is a deductible of net ₹36,500 applicable while claiming insurance benefits. This deductible is applicable whenever you apply for the loss of your drone per event, in a manner where the insured is indemnified.

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Reason For Having Drone Insurance

If you are an entrepreneur, a content creator, or a freight company director, commercial drone insurance is a necessity for you. You’ll be surprised to know that the use of drones has expanded beyond traditional agriculture and defense. Now content creators, quick commerce platforms, real estate, and construction architects are actively using AI for getting quicker results. Insuring your drone is a way of financially covering all losses that your drone may undergo.

Let’s understand this with an example.

Example

Kartflow Enterprises is a freight company in Bangalore, operating for 14 years. Until recently, they have adopted drone technology to lower latency in delivery and improve their logistics. They also wanted to acquire more stakeholders with reduced cost, hence using drones for remote delivery seemed a feasible option.

However, four of their drones got dysfunctional due to accidental damage while they were flying in extreme weather conditions.

Each of their aerospace assets cost the company ₹1,20,000, which resulted in total loss of ₹4,80,000. The company can easily cover for this loss if it has bought drone insurance liability. Paying for annual premiums on drone coverage is a better business strategy than losing revenue on uninsured drones.

Here are the main reasons why you should have drone protection:

Reasons For Having Drone Insurance India

• Recover from accidental loss of revenue
• Lower risk for remote and extreme weather drone deliveries
• Deploy advanced drones without worrying about looming dangers
• Protect your drones against all third-party liability

Main Documents Required To Buy Drone Insurance

Before you can claim the insurance reimbursement, you have to submit a few of these documents to be eligible to receive your insurance premium. You can take a screenshot of these or note down these documents:

• Insurance claim form
• Photos of your damaged drone
• Drone purchasing invoices
• Drone flying log books
• Documents required by the insurer

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Wrapping Up

Drones are the new future of delivery and surveillance in modern India. While the market demand for drones is skyrocketing, most commercial institutions and logistics brands are rooting to bring in more drones for optimal performance. Besides having drones, their security is of prime importance. Flying a drone in extreme weather or extremely remote places may not be safe enough, as drones are simply aerial devices that can break down time. Drone insurance is the answer to securing your drones at a minimal cost. Insuring your drone not only protects your business from colossal revenue loss, but you can also fly your drones beyond limits.