A working group set up by Insurance Regulatory and Development Authority of India (IRDAI) has reportedly suggested a broad policy framework and procedures for insuring drone industry.

The group was formed by the Indian insurance watchdog in June this year as part of its effort to design suitable insurance products for drones.

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In addition to several procedures to be followed and the documentation required in the event of a claim, the IRDAI working group put forward several risks related to the use of Remotely Piloted Aircraft Systems (RPAS), reported Press Trust of India (PTI).

This framework covers several aspects of drone insurance. This includes legal liabilities to third party, drone hull cover, accidental medical cover to operator, etc.

In India, insurers have adopted drones for use in crop cutting experiments. The drones are also used in carrying out surveys of industrial locations in connection with property insurance programmes.

Regarding premium, the working group proposed pricing to be exclusively a domain of actuaries, reported PTI.

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“Hence the work group has no intention to suggest a particular price for the product recommended in this report and leaves the determination of price to each insurer’s Appointed Actuary, in the context of data available with them, the assumptions taken, the underwriting and pricing philosophy of the company and the expense and profit loadings unique to that insurer,” the group reportedly stated in its report.

In July, IRDAI permitted health insurers in the country to offer Corona Kavach as a group insurance policy for public and private sector companies.