Whether you’re a hobbyist pilot, a drone services company, or a training institute, understanding drone insurance is critical for safe and legal operations in India. This comprehensive FAQs is arranged in sections and covers everything about drone insurance in India, from drone insurance regulations and types of coverage to drone insurance costs, claims, and common concerns—so you can fly with peace of mind.
📋 Regulations & Compliance in India
Yes, drone insurance is mandatory under the Drone Rules, 2021, for drones weighing more than 250 grams. Operators must obtain third-party liability insurance to legally fly drones. This regulation is enforced by the DGCA and applies to both individuals and commercial entities.
Yes, if the drone weighs more than 250 grams. Regardless of whether you are flying commercially or for leisure, if the drone does not fall in the nano category, it must be insured for third-party liability. Recreational use is not an exemption.
Nano drones (weighing 250 grams or less) are exempt from mandatory insurance. However, operators are still encouraged to get insurance voluntarily, as accidents can still occur even with small drones.
Third-party liability means you are covered for legal and financial responsibilities if your drone causes injury to a person or damage to property. It does not cover damage to your own drone but protects you from being sued or fined by others.
Drone insurance falls under the purview of the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation. Insurance companies must follow the standards outlined in the Drone Rules and coordinate with the Digital Sky platform.
Flying an uninsured drone in required categories may result in:
- A penalty of up to ₹1,00,000.
- Confiscation of the drone.
- Suspension or cancellation of the Remote Pilot Licence (RPL).
- Legal consequences in the case of third-party damage.
🛡️ Types of Drone Insurance
There are two primary categories:
- Third-Party Liability Insurance: Covers injury or property damage to others.
- Comprehensive (Hull) Insurance: Covers third-party liability plus damage or loss to your own drone.
Comprehensive policies often cover:
- Accidental damage to the drone.
- Theft or burglary.
- Fire, natural calamities.
- Third-party injury or property damage.
- Optional add-ons like payload cover, night-flying, or cyber risks.
Hull insurance refers to the protection against physical damage or total loss of the drone due to crashes, fire, theft, or natural disasters. It is especially useful for expensive or commercial drones.
Payload cover protects the equipment your drone is carrying—like cameras, LiDAR sensors, or delivery payloads. It is an optional add-on and needs to be specifically included while purchasing the policy.
Yes, many insurers offer optional personal accident and medical coverage for the remote pilot. This helps if the operator is injured while handling or flying the drone.
Some policies offer cyber protection against hacking, unauthorized access, or privacy violations caused by drone data. It is usually offered as an advanced add-on in corporate or enterprise-level policies.
💸 Cost, Premiums, and Pricing Factors
Costs vary based on drone category and usage. Typical premiums:
- Third-party only: ₹4,000–₹20,000 annually.
- Comprehensive coverage: ₹10,000–₹50,000+ annually, depending on drone value and usage.
Premiums depend on:
- Drone weight and value.
- Type of operation (recreational vs commercial).
- Pilot experience and training.
- Flight environment (urban, rural, offshore).
- Claims history.
- Add-ons like payload, cyber, or night-flying coverage.
Yes. Commercial usage implies higher risk, stricter regulations, and higher liability, which naturally increase the premium compared to personal or hobbyist flying.
Yes. Operators with a clean track record often enjoy lower premiums, while those with prior claims may see higher premiums due to perceived risk.
Yes. Opting for a higher deductible (out-of-pocket payment during a claim) can reduce your annual premium. However, it also means you’ll pay more in the event of a loss.
🏢 Insurers & Buying Process
Several private and public sector companies offer drone insurance, including:
- ICICI Lombard
- TATA AIG
- Bajaj Allianz
- HDFC ERGO
- IFFCO Tokio
- SBI General
- National Insurance
Yes, many insurers and aggregators offer online drone insurance. You can compare plans, fill out details, upload documents, and make payments digitally.
You may need:
- Drone registration number (UIN).
- DGCA license (if applicable).
- Remote Pilot Licence (RPL) for commercial drones.
- Invoice of the drone.
- Images or serial number.
- KYC documents for the owner.
Yes, fleet insurance is available for companies or organizations that operate multiple drones. This simplifies policy management and may reduce the per-unit premium.
Yes, some providers offer flexible durations such as hourly, daily, monthly, or annual policies—depending on your operational needs.
Many insurers allow you to endorse or modify the policy mid-term to include additional coverage like payload or night flying. However, premium adjustments may apply.
🧾 Claims & Disputes
Steps usually include:
- Notify your insurer immediately.
- Submit a claim form with supporting documents (photos, logs).
- Cooperate with the appointed surveyor.
- Get damage assessed.
- Receive settlement (repair or replacement, depending on coverage).
You may need:
- Copy of the insurance policy.
- Drone flight logs.
- Images or videos of the incident.
- Police FIR (in case of theft or third-party injury).
- Original purchase invoice and serial number.
Most insurers require notification within 24–72 hours of the incident. Delayed intimation can lead to claim denial.
Depending on complexity, it may take 7–30 days to complete verification, documentation, and payment disbursal.
⛔ Exclusions & Limitations
Common exclusions include:
- Wear and tear, corrosion.
- Flying in no-fly zones or restricted areas.
- Violations of DGCA regulations.
- Operating under the influence of alcohol/drugs.
- Deliberate damage or negligence.
Some comprehensive policies cover weather-related incidents like storms or lightning. However, careless flying in known poor weather conditions may be excluded.
Indoor flying may be covered if declared and approved in your policy. It’s crucial to ensure your operating environment matches what’s disclosed to the insurer.
⚙️ Add-ons & Specialized Coverages
BVLOS (Beyond Visual Line of Sight) coverage protects you during long-distance or automated drone flights. This is an advanced operation mode and needs a specific DGCA permit and insurance add-on.
By default, most policies exclude night operations. However, if night flying is permitted by the DGCA and included in the policy via endorsement, coverage is possible.
Yes, institutions certified as RPTOs (Remote Pilot Training Organizations) can insure their training drones and even students operating under supervision.
Yes, but this usually falls under specialized commercial coverage. The drone, payload, and third-party liabilities must be disclosed in detail.
✍️ Operational & Practical Queries
Only if that person is:
- Authorized in the policy.
- Holds a valid RPL (if required).
- Complies with operational rules.
Ensure no one is injured.
Secure the drone and area.
Document the incident.
Notify your insurer immediately.
File a police report if third-party damage is involved.
Most policies are valid for 12 months and must be renewed annually. It’s advisable to renew before expiry to avoid compliance issues.
Yes, some insurers offer transit cover for newly purchased or imported drones. You can also insure the drone once it arrives in India.
Certain agricultural and industrial use cases may receive government subsidies, though drone insurance is usually privately arranged. Some drone corridors or schemes may mandate subsidized insurance.