Page 51 - Insurance Times March 2021

Issuance of digital insurance policies by Market are offering insurance cover for RPAS/Drones
through existing products under Aviation Insurance.
insurance companies via Digilocker
Considering the unique characteristics of Drones that
IRDAI/ INT/ CIR/ DGLKR/ 030/ 02/ 2021 differentiate them from other aircrafts and taking into
Date:09-02-2021 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
1. Digilocker is an initiative under the Digital India program
by the Government of India where citizens can get requirement of drone owners and operators.
authentic documents/ certificate in digital format from 2. In line with the above objective of making basic
original issuers of these certificates. It aims at insurance covers available by the general insurers for
eliminating or minimising the use of physical documents Drones and to facilitate flexibility and innovation in the
and will enhance effectiveness of service delivery, development of insurance coverage for evolving
making these hassle free and friendly for the citizens. technology requirements, the following product
2. In the insurance sector, Digilocker will drive reduction in construct is provided.
a. Section I: Legal Liability to Third-Party.
costs, elimination of customer complaints relating to non-
delivery of policy copy, improved turnaround time of Indemnify the insured against its legal liability
insurance services, faster claims processing and (including Defence Costs) to pay Damages, for third
party civil claims arising out of bodily injury or death
settlement, reduction in disputes, reduction in fraud and
improvement in customer contactability. On the whole it or property damage, by an accident or a handling
is expected that it will lead to better customer experience. error on part of the authorized operator. Currently,
TP Liability cover should be offered in line with
3. In order to promote the adoption of Digilocker in the
Aircraft/ Aviation Liability. The change, if any, in
insurance sector, the Authority advises all insurers to
Government of India rules/guidelines in respect of
enable their IT systems to interact with Digilocker
TP Liability cover for Drones from time to time may
facility to enable policyholders to use digilocker for
be adhered to.
preserving all their policy documents.
b. Section II: Physical Damage to Drone Body /Hull
4. The insurers should inform their retail policyholders
Indemnify the insured in respect of repair/
about Digilocker and how to use it. Insurers are also
replacement of the insured RPAS. RPAS means an
advised to enable the process by which the policyholders
Unmanned Aircraft System including payload,
can place their policies in the digilocker.
ground handling tools and/or equipment on Hull
5. Digilocker team in NeGD (National e-Governance Agreed Value basis.
Division) under Ministry of Electronics and Information
c. Section III: Personal Accident cover to Operator.
Technology shall provide necessary technical guidance
Indemnify the Insured/ Authorised operator for
and logistic support to facilitate adoption of Digilocker.
bodily Injury sustained by the Insured/ Authorised
A brief for on-boarding documents and contact details
Operator anywhere in India while operating drones
of resource persons in NeGD is annexed.
and arising out of an Accident.
d. Section IV: Medical expenses cover to operator.
T.L. Alamelu
Member (Distribution) Indemnify the Insured/ Authorised operator for the
medical expenses who has been hospitalized
Product Structure for Insurance of because of a Bodily Injury arising out of flight of the
covered Drone.
Remotely Piloted Aircraft System (RPAS) /
e. Optional Covers to enhance the coverage.
Drones i. Alternate Hire Charges
IRDA/CIR/MISC/031/02/2021 ii. Drone War Liabilities
Date:11-02-2021
iii. Cyber Liability Cover
1. Currently, only a few general insurers in the Indian iv. Invasion of Privacy Cover

The Insurance Times, March 2021 51