|News Update|| |
Irdai committee recommends insurance for drones on the lines of Motor Vehicles Amendment Act 2019 for third-party liability
Insurance Regulatory and Development Authority of India (IRDAI) constituted a Working Group in June 2020 to study and understand the insurance needs of RPAS owners and operators and make recommendations relating to design and development of products meeting the needs of RPAS owners and operators, including Third Party Liability.
The Working Group has now submitted the report. The committee notes that the Draft UAS 2020 has suggested compensation in respect of Third-Party Liability to be on the lines of Motor Vehicles Amendment Act 2019, which in the group’s opinion is partially acceptable in situations like Section 164 of Amendment Act of 2019 (Payment of compensation in case of death or grievous hurt). However, as per the committee the unlimited liability (Section 166) and Solatium Fund appearing under MV act is a cause of concern to develop a feasible drone insurance ecosystem in view of non-availability of claim data for drone losses and lack of re-insurance support for unlimited liability.
The report has looked into the insurance requirements of the RPA owners and operators, suggested coverage’s along with draft / specimen wording, factors which affects the pricing (premium) and finally the underwriting considerations which may be followed.
Few suggestions / recommendations have been made on the governance /privacy issues, and if adopted will provide a robust environment in the country for the drone operations.