Page 28 - Insurance Times February 2021

flight and for how long. However as the Digital Sky portal is Mandatory Third Party Insurance of
itself in a beta version no one can get this NPNT permission
certificate which makes it legally impossible to fly drones in Drones:
India as of now other than those drones that don't require As per rules, "No unmanned aircraft (UA) system shall be
such permit as mentioned above. operated in India unless there is in existence a valid third
party insurance policy to cover the liability that may arise
Permission for trials on account of a mishap…," The Covid-19 crisis has resulted

The rules came at a time the DGCA has permitted food in increased adoption of drones after they were deployed
in multiple states, such as Delhi, Maharashtra, Kerala,
startups like Zomato and Swiggy to conduct trials for drones Telangana, and Punjab, for surveillance and containment
beyond the visual line of sight (BVLOS). As many as 13 activities. The draft says that no drone can be operated in
consortia, including SpiceJet, have received permissions from India without having a valid third party insurance policy to
the aviation safety watchdog to conduct trials. Trials for cover the liability that may arise during mishaps, causing
these 13 companies could take up to six months to conclude. death or bodily injury to any person or damage to property.
Each of these companies will then submit a report to the
DGCA, which will then examine the feasibility of remote The Covid-19 crisis has resulted in increased adoption of
operations of drones. A separate set of rules which will drones after they were deployed in multiple states, such as
enable use of drones for e-commerce or delivering medical Delhi, Maharashtra, Kerala, Telangana, and Punjab, for
supplies may take at least a year. surveillance and containment activities. For drones flown on
a private and as well as commercial basis, it is mandatory
This time-frame may be too optimistic, as regulatory to buy third-party liability insurance in India. However, in
clearances are slow and tardy. Food delivery by drones in the absence of a defined product structure, both insurers
India is quite some time away despite the DGCA's nod to
aggregators like Zomato and Swiggy for trials. The Centre as well as drone enthusiasts are finding it difficult to find
has notified draft rules prohibiting "carriage of payload" as specific covers at affordable rates. Most insurance firms are
well as "dropping of articles" by unmanned aerial vehicles. unwilling to offer covers citing lack of reinsurance support.
Also worth noting is that India has specific requirements
regarding the types of features a drone must have to be An IRDAI working committee has recommended a
flown in India (excluding those in the Nano category). These comprehensive insurance cover for drones with a third-party
mandatory requirements include: liability which should be in line with aircraft or aviation
GPS liability - as is the practice in the developed nations - instead
of following the Motor Vehicles Act. While drone operators
Return-to-home (RTH) continue to have minimum levels of insurance such as third-
Anti-collision light party liability cover, the committee on remotely piloted
ID plate aircraft (RPA) systems/ drone technology said this may not
be comprehensive enough to address the requirement of
A flight controller with flight data logging capability drone operators. If an accident occurs there is a risk that

RF ID and SIM/No Permission No Takeoff (NPNT) coverage is not comprehensive and that an injured member

Category Nano (up to Micro (>250g Mini (>2kg Small (>25 kg Large (>150
250 gm) to < 2kg) to <25 kg) to <150 kg) kg)
Unique identification number (UIN) NO YES YES YES YES
Unmanned Aircraft Operator NO YES YES YES YES
Permit (UAOP)
Estimated approval time NO 2 days 2-7 days 2-7 days 2-7 days
Height (AGL) allowed to fly 50 feet 200 feet 200 feet 200 feet 200 feet
Visual Line-Of-Sight operations YES YES YES YES YES
Local police permission YES YES YES YES YES
Flight plan and ADC NO NO YES YES YES

The Insurance Times, February 2021