“DRONE” INSURANCE FOR COMMERCIAL DRONE OWNERS / OPERATIONS

DRONE is popularly known as an abbreviated form of Dynamic Remotely Operated Navigation Equipment.  A UAV is defined as a “powered, aerial vehicle that does not carry a human operator, uses aerodynamic forces to provide vehicle lift, can fly autonomously or be piloted remotely, can be expendable or recoverable, and can carry a lethal or nonlethal payload”. The term unmanned aircraft system (UAS) was adopted by the United States Department of Defence (DoD) and the United States Federal Aviation Administration in 2005 according to their Unmanned Aircraft System Roadmap 2005-2030. 

The International Civil Aviation Organization (ICAO) and the British Civil Aviation Authority adopted this term, also used in the European Union’s Single European Sky (SES) Air Traffic Management (ATM) Research (SESAR Joint Undertaking) roadmap for 2020. This term emphasizes the importance of elements other than the aircraft. It includes elements such as ground control stations, data links and other support equipment. A similar term is an unmanned-aircraft vehicle system (DRONES) remotely piloted aerial vehicle (RPAV), remotely piloted aircraft system (RPAS).  Many similar terms are in use. But the most popular and known term as on date is DRONE.

Drones, India’s Regulations :

As per the definition given by DGCA (Director General of Civil Aviation) for Unmanned Aircrafts (UAs), “the UAS consists of an Unmanned Aircraft (UA), a Remote Pilot Station (RPS), Command and Control (C2) Link, the maintenance system and the operating personnel. Unmanned aircraft are either pilotless or do not carry pilot(s) on board. Remotely Piloted Aircraft (RPA), Autonomous Aircraft and Model Aircraft are various types of unmanned aircraft”, which is essentially what we call as Drones.

As per the Indian draft guidelines, issued in April 2016 by the DGCA UAVs have been categorized by weight into four classes: micro, which is up to 2 kilos, mini, exceeding 2 kilos but less than 20, small, exceeding 20 kilos and less than 150, and large, exceeding 150. All UAVs require a Unique Identification Number (UIN) issued by the DGCA. A UIN can be granted only to a citizen of India or to a company that is incorporated and has its principal place of business in India, with substantial control vested in Indian nationals. The UIN is a positive security measure with which any UAV operating in India can be tracked and identified.

The procedure and documentation for granting a UIN is already quite elaborate, requiring address and identity proof, information concerning the purpose of the UAV’s operation as well as its specifications, flight manual, and manufacturer’s maintenance guidelines, character verification of the operator by the local sub divisional police; and permission from the Department of Telecommunications to use the radio frequencies required for the UAV’s operation. Moreover, all civilian UAV operations at or above 200 feet in uncontrolled airspace for any purpose will require an unmanned aircraft operator permit (UAOP) from DGCA, while operation of civilian UAVs in controlled airspace is restricted. UAVs can enter controlled airspace only with the prior approval of the air navigation service provider, which will be in the form of an airways clearance. In addition, all UAV operators have to ensure that the UAV is flown within a 500-meter visual line of sight during the entire flight. 

The UAOP is valid for two years and is not transferable. A UAOP is not required for civil UAV operations below 200 feet in uncontrolled airspace that is clear of restricted areas, for model aircraft operating below 200 feet in uncontrolled airspace, or for indoor flying for recreational purposes. For all UAV flights above 200 feet, the UAS operator has to inform the local administration, the air traffic service unit, the Bureau of Civil Aviation Security, and any aerodrome operators, if applicable, both prior to and following the operation. The operator also has to file flight plans containing information about the flight, performance characteristics of the UAV, the number and location of remote pilot stations, payload, and insurance coverage for liability.

The guidelines also mandate UAV operators to carry out safety assessments of the launch site and maintain full control over the site of operation. This is integral to airspace security because UAV technology which relies on a closed loop of radio communications between the remote pilot station and the UAV and is thus less prone to man-in-the-middle type of attacks is highly prone to attacks at either end of the loop. By infiltrating either the UAV or the command and control facilities at the pilot station with malware or bugs, bad actors could gain control over the UAV and play havoc with its operation.

The guidelines also stipulate the training requirements for remote pilots. They should be above eighteen years of age and have a thorough training equivalent to that undertaken by the crew of manned aircraft or by the holder of a private pilot license. The training should also include preparation for a flight radio telephone operator’s license. In addition, remote pilots are required to undertake thorough practical training in the control of an unmanned aircraft in flight, including simulated flight training, so that they can build capabilities not only in controlling the UAV throughout its aerial operation but also for its safe recovery in the event of an emergency or system malfunction. These training requirements are not applicable to recreational flying and the flying of micro UAVs.

Drones are taking off in India. While sales are going through the roof, prior permission from authorities is necessary to fly them. There is immense growth potential for both the industry and the market for Drone which is expected to push up the projected value of the domestic industry to approximately $421 million by 2021.

Classification

Drone typically falls into one of six functional categories (although multi role airframe platforms are becoming more prevalent):

1. Target and decoy – providing ground and aerial gunnery a target that simulates an enemy aircraft or missile

2. Reconnaissance – providing battlefield intelligence

3. Combat – providing attack capability for high-risk missions (see unmanned combat aerial vehicle)

4. Logistics – delivering cargo

5. Research and development – improve UAV technologies

6. Civil and commercial Drones – agriculture, aerial photography, data collection.

Commercial and Civil Use Applications of Drone :

Drone….. Drone…… Drone………. Suddenly everyone is talking of Drones. Asking for Drones. Imagine just a decade ago, Drones were known mostly for their involvement in foreign wars; they were often derided as a means for the US to carry out attacks without getting its hands dirty. But over the past two years – as the micro technology they rely on has advanced – there has been an explosion in their use, both commercially and recreationally.  Some Drones are so small they fit into a wallet, while others are four foot in diameter.

The upsurge in their use is being fuelled by their affordability and the fact electronic retailers have started stocking them, but also by a media obsession with gadgetry. The real beauty of Drones lies in their potential for industry. Every day it seems new applications for the technology are emerging. Uses are multifarious yet beyond imaginations…………

Anti-poaching, Detection of Illegal Hunting : International Anti-Poaching Foundation is using Drones on very frequent basis. Similarly.  World Wide Fund for Nature (WWF) is using Drones in Nepal to aid conservation efforts.  Drones are used by members of the Sea Shepherd Conservation Society in Namibia to document the annual seal cull.

WWF supplied two Drones to Nepal National Parks to monitor rhinos, tigers and elephants and deter poachers.  The Drones equipped with time lapse cameras and could fly for 18 miles at 650 feet. In Hluhluwe-iMfolozi Game Reserve in the KwaZulu Natal province South Africa hills where Zulu royalty once hunted wildlife, South African conservationists now scan live video from a thermal imaging camera attached to a Drone, looking for heat signatures of poachers stalking through the bush to kill rhinos. Anti whaling activists use Drones to monitor Japanese whaling ships in the Antarctic. The British League Against Cruel Sports is using fixed-wing Open Ranger and an “octocopter” to gather evidence to make private prosecutions against illegal hunting of foxes and other animals. The Sea Shepherd Conservation Society and the League Against Cruel Sports is using Drones to expose illegal fox hunting in the UK.  

Aerial Photography : Imagine a film scene where the camera pans over the mountains, stunning vistas, or some other wide sweeping landscape? Drone aerial photography allows to capture that same kind of landmark footage, minus the Hollywood effects. Instead of relying on a film crew,one only needs a remote controlled Drone, and camera equipment. And time. Lots and lots of time for practice. Drone technologies are used worldwide as aerial photogrammetry and LiDAR platforms.

Border Patrol Missions : Various countries government agencies use Drones  to patrol borders, scout property and locate fugitive.

Construction Industry, Land Surveying : From scouting the site to the finishing touches, Drones have become an absolute big part of the Construction Industry. Despite having lots of software, sophisticated measuring tools, good quality construction materials and so on, it’s Drones which now provides a bird’s eye view to the project, without employing a full blown flying machine, jet pack or a helicopter? Whenever there is a problem at the site, one has no longer to run on the job site. Instead this can be done with the help of the Drone.  Most of the advanced construction projects are transformed with Drones and they help monitoring multiple job sites without having to travel excessively. Seating in one’s office one can see exactly what has been done and what needs to be done. Large scale contractor’s use Drones for this purpose on a daily basis to make sure things are running smoothly, safely, and on schedule.

Drones are used to show clients the progress of building, renovation, or inspection. If clients are not able to visit and view the job site regularly, Drones are very helpful in providing a visual standpoint that they wouldn’t have seen from the ground. It is not just the task of showing the client what is happening if they can’t be there, it can also help with projects that haven’t even begun yet.

Drones do a great job of giving designers and architects an idea of what putting an adjacent structure up will look like, and how the aesthetics will change a very large project in a community in regards to open space on the ground and upwards.Instead of employing heavy software, lots of people and relying on complex readings,  one can employ a Drone to get a first hand view of how solid the structures are, how aesthetically pleasing they are coming up, and where they are moving out of the plan, all in a hurry. 

Commercial building management relies on inspection for wear and tear, and the most effective ways to do this are at least once a year. The element of time saving is one that Drones really make a difference with here, and use of Drones in construction industry has helped by leaps and bounds. Images captured during the inspection are very easy to use in modelling, and the rates to hire a Drone pilot are less than what you can expect to pay to insure the person who would have had to manually scour the building or site.

Indian start-ups are assisting in the 3-D digital mapping of the Raebareli-Allahabad highway, as part of the road-widening project executed by the National Highways Authority of India. The data gathered by UAVs is turning out to be extremely useful in the computation of compensation for those whose property rights are affected by the project.

Haryana state’s Project Udaan, or flight, is mapping the technology hub of Gurgaon, a satellite town of Delhi, and the towns of Sohna and Manesar in northern India. Haryana state officials sourced Drones from Science and Technology Park, Pune to take high resolution images every three months to record boundaries, illegal constructions and encroachments of forests and public lands. These images are then checked against existing land records and verified with village councils in rural areas before being updated.

Delays in mapping lands and authenticating ownership have caused disputes that stall development projects, sparking lengthy court battles. Matters related to land and property make up about two thirds of all civil cases in India.  India has embarked on a land record modernisation programme to survey lands, upgrade records and establish ownership. The project is scheduled to conclude in 2021 at a cost of 110 billion rupees ($1.6 billion).    

Indian Railways is planning the bidding process for 3-D video mapping of the entire dedicated freight corridor network of 3,360 kilometers (roughly 2,000 miles) using Drone technology.

Drones are increasingly used in India to curb deforestation and check illegal mining and quarrying.

Convoy Protection : In a number of future civilian and military applications, it is expected that heterogeneous, unmanned vehicles have to be coordinated despite their highly varying dynamics and sensing capabilities. In particular, Drones are expected to solve such tasks as surveillance, clearing of hostile terrains, transportation in convoys, and the establishment of logistic support chains.

Cooperative Environment Monitoring : UAVs are especially useful in accessing areas that are too dangerous for manned aircraft. The U.S. National Oceanic and Atmospheric Administration began using the Aerosonde unmanned aircraft system in 2006 as a hurricane hunter. The 35 pound system can fly into a hurricane and communicate near real time data directly to the National Hurricane Center. Beyond the standard barometric pressure and temperature data typically culled from manned hurricane hunters, the Aerosonde system provides measurements from closer to the water’s surface than before. NASA later began using the Northrop Grumman RQ-4 Global Hawk for hurricane measurements.

Crowd Monitoring : With large gatherings and protests, or even when monitoring individuals, it is often difficult to maintain an overview. Micro Drones can be a useful instrument here, allowing the situation to be viewed from on high.The Government of Uttar Pradesh has used Drones for maintaining law and order at the Kumbh Mela festival in Allahabad, and so have the Mumbai police during the grandiose Ganpati festival.

Delivering Medical and other Supplies to Otherwise Inaccessible Regions: Drones are being used to deliver water, food, milch, medicines and other emergency necessities to people caught in floods, earthquakes and other natural and man made catastrophes. Amazon and Google are trying to develop technology that would allow them to deliver packages to people’s doors.

Disaster Management: UAVs can help in disaster relief by providing intelligence across an affected area. The National Disaster Management Authority (NDMA) has already been relying on the delivery and tracking capabilities of Drones to handle disaster relief and rescue in India.Similarly, during elections in the State of Chhattisgarh, the Central Reserve Police Force used UAVs for patrolling an area of 40,000 square kilometres and providing round the clock surveillance. Drones helped the New Delhi police identify seventy bags of bricks stocked for use as projectiles by rioters during the Trilokpuri riots in 2014, and they could take pre-emptive action.

Film Making : Since Winter Olympics, 2014 Drones are being used to film sporting events as they have greater freedom of movement than cable mounted cameras. Use of UAVs for filmmaking is generally easier on large private lots or in rural and exurban areas with fewer space constraints. In localities such as Los Angeles and New York, authorities have actively interceded to shut down UAV filmmaking over safety or terrorism concerns. In June 2014, the FAA acknowledged that it had received a petition from the Motion Picture Association of America seeking approval for the use of UAVs for aerial photography. Seven companies behind the petition argued that low cost UAVs could be used for shots that would otherwise require a helicopter or a manned aircraft, saving money and reducing risk for pilot and crew.  

Fire and large accident investigation,Forest fire detection and monitoring : In a first, the Uttarakhand Forest Department has launched a Drone for real time monitoring of the forest fire and to take preventive measures in April 2017. The Drone was launched from a remote location in Nainital district that falls under the western circle …  a big part of the vast Terai region of the state located outside the tiger and forest reserves. Three Drones are being used for real time monitoring of the forest fires. This is for the first time in India. Already in field, the Drone does the real-time aerial monitoring and show the department workers developing a fire line in the western circle forest to check fire from spreading.Drones are being designed with built in fire extinguisher that works through sound waves and send them into fires that are too dangerous for people to enter.

Insurance Industry, Survey and Loss Settlements : Today, we live in an era of rapid technological advancement that is changing the way insurers prepare for and respond to catastrophes. Drones are just one of the many new tools with which life, business, and the global economy are being transformed.Drone usage is predicted to make the claims adjusters’ workflow 40-50 percent more efficient.

In some countries Drones already play an important part in the insurance claims process: Now, one claims adjuster sitting in his office and equipped with a Drone can set up an automated flight plan around multiple insured locations; evaluate the properties using sensors, and capture images. According to Cognizant, Drone usage is predicted to make claims adjusters’ workflow 40- 50 percent more efficient. Drones can improve the speed with which surveyors can assess the loss, submit assessment reports and help expedite claims settlements thereby customers receive settlements promptly. There is also less risk involved for claims adjusters, who no longer need to climb ladders or go on roofs to assess damage, by using Drones they can remain in a safe area during their assessments.

Pre Acceptance Risk Inspections and Fair Pricing: Under the existing cut-throat insurance market use of Drone help is also a way to help insurers stay competitive. Drones can be used to collect information about a property before a policy is issued by capturing data on property features that make it less vulnerable. This can facilitate most accurate and reasonable premiums charged according to the risk exposure. 

Aerial imagery taken by Drones delivers larger quantities and enhanced quality of data from which to develop catastrophe model components and inputs for analysis. 

Lower losses from fraud: According to the Insurance Information Institute, fraud compromises about 10 percent of property and casualty insurance losses and loss adjustment expenses annually,this translates to about $32 billion each year. In addition, 57 percent of insurers predict an increase in this type of fraud by policyholders. How can Drones lower the amount of loss from fraud? After an extreme event, it is common for insurance companies to receive numerous claims for damages that existed before the event occurred. By using UAVs prior to an extreme event to capture images of insured properties, companies can protect themselves from such fraudulent claims.

Drones and artificial intelligence come together: Artificial intelligence (AI) integrated with Drones will allow for more independent functionality. Drones integrated with AI will provide an end to end solution that will allow for an expedited claims process, reduction in costs, and an increase in customer satisfaction.

An extreme event can devastate a region and affect thousands of lives. For the insurers and people affected, timing is everything. Organizations need to dedicate resources immediately, effectively, and efficiently help to get communities and businesses back on their feet. 

Intellectual Property : Drone Defence Could Help Preserve Intellectual Property. Due to the damage it does to a company’s reputation and shareholder confidence you don’t find these stories in the mainstream news but Drones are now being used to circumnavigate physical security measures and steal sensitive information from big business. Zoom cameras, microphones, GPS jammers and data sniffers are some of the weapons in the arsenal that are capable of being carried by a Drone. Drone Defence can help Physical Security managers mitigate this threat.

Law and order : Many police departments in India have procured Drones for law and order and aerial surveillance. Drones have been used for domestic police work in Canada and the United States.  Approximately 167 police and fire departments bought unmanned aerial vehicles in the United States in 2016, double the number that was purchased in 2015. Drones have been used by U.S. Customs and Border Protection since 2005 with plans to use armed UAVs.  The FBI stated in 2013 that they use UAVs for “surveillance”. In 2014, it was reported that five English police forces had obtained or operated UAVs for observation. 

Soon Drones may be used as tracking aircraft, when used in conjunction with surveillance web-cams monitored by artificially intelligent computers, so as to track criminals spotted on web-cams committing a crime, for example a murder or abduction? When the incident is captured on the web-cam, the Drone is triggered to track the criminal. Simultaneously, law enforcement is notified so that the criminal can be caught so as to prevent escape and possibly more harm.

Medical and Life Saving : Organ and Heart transplant in India is to get wings? Drones may transport hearts for transplant. This will reduce the time taken in the present traffic congestion in Mumbai, Delhi and other Major Cities, thereby benefiting the patients, as a transplant is a time-bound operation. The weight of the heart is very less and the deadline for its transplant is very short and hence Doctors have to compete with time. 

News Gathering : Journalists are interested in using UAVs for news gathering. The College of Journalism and Mass Communications at University of Nebraska-Lincoln established the Drone Journalism Lab. University of Missouri created the Missouri Drone Journalism Program. The Professional Society of Drone Journalists was established in 2011. UAVs have covered disasters such as typhoons. A coalition of 11 news organizations is working with the Mid-Atlantic Aviation Partnership at Virginia Tech on how reporters could use unmanned aircraft to gather news. UAVs are already used by media in other parts of the world. 

Pollution Monitoring: Drones equipped with air quality monitors provide real time air analysis at various elevations.

Power Lines and Pipelines :The state-owned Power Grid Corporation of India has obtained approval from a committee representing the Ministries of Defence, Home Affairs, and Power to use Drones for monitoring project development. The organization believes that this can render the monitoring of projects in hilly terrains particularly cheap and efficient.

Recently, one of India’s leading power transmission companies sealed a deal with a global player to use large-scale, long distance Drone flights for inspection of utility assets. In a country with a power transmission network of more than a million circuit kilometres witnessing annual double digit growth, Drones can potentially help in avoiding grid blackouts.

The ability of Drones to monitor surface integrity, take measurements, and assess wear and damage has prompted the National Thermal Power Corporation to consider their deployment for solar panel inspection, predictive maintenance, and surveillance and intrusion detection in solar power plants. Drone powered execution of infrared detection in solar photovoltaic can have monumental positive benefits for India, as the country attempts to achieve its stated goal of 100 gigawatts of solar capacity by 2022.33

Coal India has applied for permission from the Ministry of Home Affairs and the Ministry of Civil Aviation to start using Drones for aerial surveys of coal blocks that come up for exploration, in order to assess the extent of greenery to be restored after mines are closed.

Recreation  : Model aircraft (small Drone) have been flown by hobbyists since the earliest days of manned flight. In the United States, hobby and recreational use of such Drone is permitted (a) strictly for hobby or recreational use; (b) when operated in accordance with a community-based set of safety guidelines and nationwide community-based organizations; (c) when limited to not more than 55 pounds (with exceptions); (d) without interfering with and giving way to any manned aircraft; and (e) within 5 miles of an airport only after notifying air traffic control. The Academy of Model Aeronautics is a community based organization that maintains operational safety guidelines with a long proven history of effectiveness and safety. 

Recreational uses of Drones include Filming and photographing recreational activity, Drone racing, generally in the form where participants control radiocontrolled Drones equipped with cameras, while wearing head-mounted displays showing the live stream camera feed from the Drones. 

Search and Rescue, Coordinating Humanitarian Aid : Not only does using Drones mean people aren’t risking their lives on the mountainside, but a human walking over a large area can’t cover the ground as quickly or get the same situational awareness, and obviously the HM Coastguard and National Police Air Service are expensive resources, called out only in extreme circumstances.In 2014, a Drone was used to successfully locate a man with dementia, who was missing for 3 days. 

Drones were used in search and rescue after hurricanes struck Louisiana and Texas in 2008. Predators, operating between 18,000 and 29,000 feet, performed search and rescue and damage assessment. Payloads were an optical sensor and synthetic aperture radar. The latter can penetrate clouds, rain or fog and in daytime or night-time conditions, all in real time. Photos taken before and after the storm are compared and a computer highlights damage areas. 

Micro Drones, such as the Aeron Scout, have been used to perform search and rescue activities on a smaller scale, such as the search for missing persons. In 2014, a Drone helped locate an 82 year old man who had been missing for three days. The Drone searched a 200 acre field and located the man in 20 minutes. Drones have been tested as airborne lifeguards, locating distressed swimmers using thermal cameras and dropping life preservers to swimmers minutes.

Smuggling and Defence against Smuggling: Drones are being used on a weekly basis to deliver drugs, mobile phones, weapons and other contraband. When criminals can make money and have little chance of being caught you can see when they are happy to fly small Drones over the permitter fence to the required location. Drone Defence can help prevent unwanted Drone incursions into the targeted destinations. One can plan Detect, Interdict & Respond to a Drone incursion. 

Surveillance : Aerial surveillance of large areas is possible with low cost Drones. Surveillance applications include livestock monitoring, wildfire mapping, pipeline security, home security, road patrol and antipiracy. Droness in commercial aerial surveillance is expanding with the advent of automated object detection. In February 2012, an animal rights group used a Mikro-Kopter hexa-copter to film hunters shooting pigeons in South Carolina. In August 2013, the Italian defence company Selex ES provided an unarmed surveillance Drone to the Democratic Republic of Congo to monitor movements of armed groups in the region and to protect the civilian population more effectively. Dutch train networks use tiny UAVs to look out for graffiti as an alternative to CCTV cameras.

Terrorism Threat and other CriminalActivities : Of even greater concern is the risk of Drones being used for nefarious purposes. Professor David Hastings Dunn, head of the Department of Political Science and International Studies at Birmingham University, believes it is only a matter of time before terrorists will be strapping explosives to Drones, allowing them to by-pass security systems and carry out attacks on open-air events.. 

Hezbollah are said to have flown Drones into Israel in the hopes of hitting the Dimona nuclear reactor and IS to have used them for propaganda purposes. Dunn claims Drones are already being employed to carry out crimes such as dropping off drugs and casing houses for burglaries. He also believes they could be used to kill remotely without leaving a forensic trace. “They are the perfect tool for burglars, murderers and Peeping Toms,” he says.

Wild Life Conservation and Protection : In June 2012, World Wide Fund for Nature (WWF) announced it would begin using Drones in Nepal to aid conservation efforts following a successful trial of two aircraft in Chitwan National Park. The global wildlife organization planned to train ten personnel to use the UAVs, with operational use beginning in the fall. In August 2012, Drones were used by members of the Sea Shepherd Conservation Society in Namibia to document the annual seal cull. In December 2013, the Falcon UAV was selected by the Namibian Government and WWF to help combat rhinoceros poaching. The Drones will operate in Etosha National Park and will use implanted RFID tags. WW Fund supplied Drones to Nepal National Parks. These Drones are were used to monitor rhinos, tigers and elephants and deter poachers. These Drones are equipped with time-lapse cameras and could fly for 18 miles at 650 feet. Kruger National Park have also started using a Drone against rhino poachers. The Droneis  loaned to the South African National Parks authority by its manufacturer, Denel Dynamics of South Africa. Anti-whaling activists use Drones to monitor Japanese whaling ships in the Antarctic.

Ulster Society for the Prevention of Cruelty to Animals is using Drones to deter badger baiters in Northern Ireland. The British League Against Cruel Sports announced that they had carried out trial flights with UAVs and planned to use a Drone to gather evidence to make private prosecutions against illegal hunting of foxes and other animals. In Pennsylvania, Showing Animals Respect and Kindness used Drones to monitor people shooting at pigeons for sport. 

Surveying: Oil, Gas and Mineral Exploration : Oil, gas and mineral exploration and production.  Drones can be used to perform geophysical surveys, in particular geomagnetic surveys where measurements of the Earth’s varying magnetic field strength are used to calculate the nature of the underlying magnetic rock structure. A knowledge of the underlying rock structure helps to predict the location of mineral deposits. Oil and gas production entails the monitoring of the integrity of oil and gas pipelines and related installations. For above ground pipelines, this monitoring activity can be performed using digital cameras mounted on Drones.

A lot of Drone related are spearheaded by Indian start-ups: Netra, the Droneused by the NDMA during the Uttarakhand floods, was jointly developed by the Defense Research Development Organization (DRDO) and IdeaForge, a start-up created by five graduates of the Indian Institute of Technology, Mumbai.

Quidich, founded in 2014, has slowly transitioned from an aerial photography services provider to an organization involved in disaster relief operations as it was after the Nepal earthquake in 2015,and it has also helped Indian agriculture through image-processing algorithms that analyse aerial footage.

NavStik, a Pune-based start-up, has launched an indigenous platform, Flyt, for commercial Drone makers, which bundles its operating system (FlytOS) and computer system (FlytPOD) to facilitate the creation of custom Drone applications by third party developers.

Aarav Unmanned Systems has been providing faster and cheaper land surveying solutions for the construction industry and utility companies, while Airwood, a Chennai-based start-up, is offering agricultural production management solutions using Drone facilitated data collection and predictive analytics.

Omnipresent Robot Tech has worked with a major medical college in New Delhi to prototype air ambulances to deliver medical supplies to remote areas, and helped Jabong, a fashion e-retail company, to test Drones for product delivery in its warehouse at Manesar, Haryana.

These are just a few of the names in this space. While Indian start-ups are on course to take advantage of the opportunities offered by this industry, the lingering question is whether India itself is ready to take advantage of their vision and enterprise.

Drone Insurance

Significant features and benefits

Basically due to DGCA restrictions and difficulties in obtaining permits and Licence for flying Drones in Indian Territory this insurance has not as yet catched up the market and the Insurers are usually dependent on Reinsurers for Policy wordings. Only a few Insurers undertake Drone Insurance. 

However, the Drone insurance policy is designed for commercial Drone pilots and trainee pilots undertaking a supervised, DGCA approved assessment. Usually all communications, including the policy wordings, are written in plain English to ensure that the insured understands and know exactly what is and, as importantly, what is not covered.

The following features and benefits are included as standard:

Definitions :

Asbestos risks

1. The mining, processing, manufacturing, use, testing, ownership, sale or removal of asbestos, asbestos fibres or material containing asbestos; or

2. exposure to asbestos, asbestos fibres or materials containing asbestos; or

3. the provision of instructions, recommendations, notices, warnings, supervision or advice given, or which should have been given, in connection with asbestos, asbestos fibres or structures or materials containing asbestos.

Bodily injury : Death, or any bodily or mental injury or disease of any person.

Computer system : Any computer network, hardware, software, information technology and communications system, including any email or website.

Confiscation : Confiscation, nationalisation, requisition, expropriation, deprivation, destruction of or damage to property by or under the order of any government or military or public or local authority.

Damage

1. Accidental physical loss or physical damage.

2. Date recognition

3. Any failure by any equipment (including any hardware or software) to correctly recognise any given date or to process any data or to operate properly due to any failure to correctly recognise any given date.

4. Defence costs : Costs incurred with our prior written agreement to investigate, settle or defend a claim against you.

Drone : Any remotely controlled un-manned aerial vehicle which is used for commercial purposes and which belongs to you or for which you are legally responsible. This definition also includes the following accessories where designed specifically for use with a drone:

1. filming, scanning, mapping, infrared and x-ray equipment including software.

2. bags and carry cases;

3. tools and cleaning equipment;

4. guards and safety equipment;

5. walkie-talkies and communications equipment;

6. power supplies and control equipment;

7. binoculars and photographic equipment;

8. laptops and tablets being used for the purpose of controlling a drone.

The following are not included within this definition: 

(i) aerial vehicles which weigh 20kg or more

(ii) fixed wing aerial vehicles

(iii) mobile phones and PDAs

(iv) laptops and tablets.

Endorsement : A change to the terms of the policy.

Excess : The amount you must bear as the first part of each agreed claim or loss.

Flood : Rising surface or tidal water, or the overflow of water from any natural or artificial watercourse (other than water tanks, apparatus or pipes), whether driven by storm or not.

Geographical limits : The geographical area shown in the schedule.

Hacker : Anyone, including an employee of yours, who maliciously targets you and gains unauthorised access to or unauthorised use of your computer system or data held electronically by you or on your behalf, solely by circumventing electronically the security systems in place to protect against such unauthorised access or unauthorised use.

Hi-jacking : The unlawful seizure or wrongful exercise of control of any drone through the use of force or the threat of force.

Inefficacy : The failure of any of your products or any service, process or system provided or managed by you to perform the function or serve the purpose for which it was intended.

Invasion of privacy : Invasion of any rights of privacy or any nuisance, trespass or interference with any easement or right of air, light, water or way.

Nuclear risks

1. Any sort of nuclear material, nuclear reaction, nuclear radiation or radioactive contamination;

2. any products or services which include, involve or relate in any way to anything in a. above, or the storage, handling or disposal of anything in a. above;

3. all operations carried out on any site or premises on which anything in a. or b. above is located.

Period of insurance : The time for which this policy is in force as shown in the schedule.

Policy : This insurance document and the schedule, including any endorsements.

Pollution : Any pollution or contamination, including noise, electromagnetic fields, radiation and radio waves.

Programme : A set of instructions written in a computer language which tells a computer how to process data or interact with ancillary equipment.

Products : Any goods sold, supplied, distributed, manufactured, constructed, erected, installed, altered, tested, serviced, maintained, repaired, cleaned or treated by you.

Property : Tangible property.

Reconstitution of data : Reconstitution of the data you need to continue your activities, if your electronic records and electronic data have been lost or distorted.

Standard construction : Built of brick, stone or concrete and roofed with slate, tiles, concrete, metal, asbestos or any other non-combustible material.

Storm : High winds of a destructive nature, rainstorm, hailstorm or snowstorm.

Terrorism : An act, or the threat of an act, by any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, that:

1. is committed for political, religious, ideological or similar purposes; and
2. is intended to influence any government or to put the public, or any section of the public, in fear; and

(i) involves violence against one or more persons; or

(ii) involves damage to property; or

(iii) endangers life other than that of the person committing the action; or

(iv) creates a risk to health or safety of the public or a section of the public; or

(v) is designed to interfere with or to disrupt an electronic system.

Virus : Programmes that are secretly introduced without your permission or knowledge including, but not limited to, malware, worms, Trojans, rootkits, spyware, dishonest adware, crime ware and other malicious unwanted software.

War : War, invasion, act of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power.

Website : Any website, intranet or extranet where you have full control over the content and which you run for the promotion of your activities.

Own Damage Section

The insurers shall insure the insured against damage to any Drone occurring within the Geographical Limits during the period of insurance. This includes damage to any Drone caused by war, terrorism, hi-jacking or confiscation.  

Additional cover : The following are also provided up to the amount shown in the schedule:

Reinstatement of electronic data : Necessary and reasonable costs of reconstitution of data as a direct result of damage covered under this section.

Alternative hire costs : Necessary and reasonable costs and expenses incurred in hiring an alternative drone to fulfil business contracts agreed in connection with insured’s business  activities following damage covered under this section. The insurers shall only pay for hire costs for the period beginning at the date of the damage and continuing until the drone is repaired or replaced but for no longer than six months.

Continuing hire charges : Continuing hire charges for any drone for which the insured is legally responsible under a standard hire contract directly following damage covered under this section.

Hacker damage : Necessary and reasonable costs and expenses incurred by the insurer with the prior written consent of the insurers to repair or replace the affected part of any computer system if, during the period of insurance, a hacker damages, destroys or alters your computer system. 

However, the insurers shall will not pay for:

1. Any virus written or created by the insured, their employee or any self-employed freelancer directly contracted to the insured and under their supervision.
2. Any virus which indiscriminately replicates itself and is automatically disseminated on a global or national scale, or to an identifiable class or sector of users, unless specifically passed on to the insured by a hacker of their computer system.

What is not covered :The Insurers shall not make any payment for 

1. Damage to any property which is not a drone.
2. Damage caused by:
3. Wear and tear, inherent defect, rot, fungus, mould, vermin or infestation, or any gradually operating cause;
4. Dryness or humidity, being exposed to light or extreme temperatures, unless this is a result of storm or fire;
5. Storm or flood occurring while the drone is being stored unless it is stored in a building that is standard construction or in a shipping container;
6. Theft or attempted theft unless the drone is:

(i) Stored in a locked building or shipping container or in a gated compound secured with a closed shackle padlock and the theft or attempted theft involves entry to, or exit from the building, shipping container or compound by forcible or violent means; or

(ii) Out of sight in a locked boot, trailer, roof box or locked compartment of a motor vehicle and all security measures on the motor vehicle, trailer or roof box are in force at the time of the theft or attempted theft;

1. Frost, other than damage due to water leaking from burst pipes forming part of the permanent internal plumbing of a building in which the drone is being stored;
2. Date recognition;
3. Any computer virus. However this shall not apply to the cover provided under …. What is covered, Additional cover, Hacker damage.
4. Damage to any drone:
5. Not being used, stored or transported by you or on your behalf and with your permission;
6. While being cleaned, repaired, inspected, worked on or maintained;
7. While in flight, other than while being transported as cargo, unless the drone is under the control of the insured, or that of an authorised employee, provided that the insured or the employee hold a current valid qualification from a DGCA approved Qualified Entity; 
8. While being transported as cargo, stowed in the hold of an aircraft or watercraft, or in the custody and control of the airport or seaport operator or their agents unless the drone is packed securely in a protective case designed to be used with the drone or is packed by a professional transit company;
9. Occurring while stored at any building, shipping container or storage unit which has been left unattended or unoccupied for more than 60 consecutive days;
10. Occurring in, on or over any airport, aerodrome or aircraft tower;
11. Occurring while the drone is under the care, custody or control of any person under the influence of alcohol or any narcotic or controlled substance, other than drugs which are:

(i) Prescribed by such person’s medical practitioner; and

(ii) Only used in accordance with the medical practitioners and manufacturer’s warnings, precautions and instructions for use;

1. Directly resulting from its own electrical or mechanical breakdown.
2. Inherent defect, inadequate or inappropriate maintenance, faulty workmanship, defective design or the use of faulty materials.
3. Unexplained loss or disappearance or inventory shortage.
4. Financial loss due to your parting with title or possession of your drone or rights to your drone prior to receiving payment in full.
5. The cost of any routine repair, inspection, maintenance, cleaning or adjustment where no damage has occurred.
6. Deliberate damage to or neglect of your drone by you.
7. The scratching of any camera lens unless the drone has suffered damage by the same cause and at the same time.
8. Any indirect losses which result from the incident which caused you to claim including any loss of use or expense incurred through not being able to use your drone following damage. However this shall not apply to the cover provided under Additional cover, Reinstatement of electronic data, Alternative hire costs, Continuing hire charges and Hacker damage.
9. Pollution or contamination except damage to any drone which is not otherwise excluded and which is caused by pollution or contamination which itself results from insured damage covered under this section
10. Nuclear risks.
11. Any cost incurred in preparing or submitting a claim under this policy.
12. The amount of the excess.

How much the Insurers shall pay in the event of a claim : The insurers shall will pay up to the amount insured shown in the schedule unless limited below or in the schedule.

Repair and replacement : It is the insurers option to repair or pay for any lost or damaged items on the following basis:

1. For any Drone that can be economically repaired, the cost of the repairs.
2. For any Drone that cannot be economically repaired, the cost or replacement with an item of similar type or equivalent specification.

If the drones were built or assembled by the insured, the insurers shall only pay the price the insured had paid for the constituent parts.

Hacker damage : At their option the insurers may repair or pay for damage, destruction or alteration of the insured computer system to the same or equivalent standard and with the same contents or as near as reasonably possible as immediately before it was damaged, destroyed or altered.

Other interests : Any payment made by the insurers shall take into account the interest of any party having an insurable interest in the drone, provided the insured had advised us of the nature and extent of the interest together with the name and address of that interested party.

Insured’s obligations

If any damage occurs : The insurers shall not make any payment under this section unless the insured notify them promptly of any damage which might be covered.

The insured  must report to the police or relevant local authority, as soon as reasonably possible, of any damage arising from theft, attempted theft, arson, malicious damage, riot or civil commotion and obtain a crime reference from them.

The insured must arrange for urgent repairs to be done immediately. Before any other repair work begins the insurers shall have the right to inspect the damaged property. The Insurers shall inform the insured if they want to inspect and survey. 

Backing-up electronic data : The insurers shall not make any payment for reconstitution of data unless the insured takes all reasonable steps to make back-up copies of all such data at least once a week and keep the copies at an alternate storage site

Employee’s Compensation Insurance Section

Special definitions for this section :

Bodily injury : Death or any bodily or mental injury or disease.

Defence costs : Costs incurred with insurer’s prior written agreement to investigate, settle or defend a claim against the insured.

Employee : An employee is deemed to be a workman within the Employee’s Compensation Insurance Act. 

Terrorism : An act, including but not limited to the use of force or violence and/or the threat of force or violence, of any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear.

What is Covered :

Claims against the insured: If any employee brings a claim against the insured for bodily injury caused to them during the period of insurance arising out of their work for the insured within the geographical limits, the insurers shall indemnify the insured against the sums they have to pay as compensation.

The amount the insurers pay will include defence costs but the insurers shall not pay costs for any part of a claim not covered by this section.

Criminal proceedings: If any governmental, administrative or regulatory body brings any criminal action against the insured during the period of insurance for any breach of statute or regulation directly relating to any actual or potential claim under this section, the insurers shall pay the costs incurred with their prior written consent to defend such an action against you.

Claims against principals: If, as a result of insured’s business, any party brings a claim, which falls within the scope of What is covered, Claims against the insured,  against a customer of their business for whom they are providing services under contract or agreement and they are liable for that claim, the insurers shall treat such claim as if made against you and make the same payment to such customer that the insurers would have made to the insured, provided that the party to be indemnified:

1. Has not, in our reasonable opinion, caused or contributed to the claim against them;
2. Accepts that the insurers can control the claim’s defence and settlement in accordance with the terms of this section;
3. Has not admitted liability or prejudiced the defence of the claim before the insurers are notified of it;
4. Give the insurers the information and co-operation the insurers may reasonably require for dealing with the claim.

Unsatisfied court judgments : If any employee obtains a judgment for damages following bodily injury against any company or individual operating from premises within the Geographical area stated and that judgment remains unpaid for more than six months, the insurers shall pay to the employee at the request of the insured the amount of any unpaid damages and awarded costs provided that:

1. The bodily injury is caused during the period of insurance and arises out of and in the course of his or her employment in your business; and
2. The insurers would have covered the said liability as if the insured had caused the bodily injury; and
3. There is no appeal outstanding; and
4. The employee assigns his or her judgment to the insurers.

Additional cover

Court attendance compensation : If any person within the definition of  the insured has to attend court as a witness in connection with a claim against the insured covered under this section, the insurers shall will pay a compensation for each day, or part of a day, that their attendance is required by the insurer’s Advocate.

What is not covered :The insurers shall not make any payment for:

1. Any claim or loss directly or indirectly due to:
2. Deliberate or reckless acts : any act, breach or omission you deliberately or recklessly commit, condone or ignore.
3. Offshore : any bodily injury caused to any of insured’s employees while they are offshore. An employee is regarded as being offshore from the moment they board any form of transport at the departure point for an offshore rig or platform until the moment they disembark on their return from the rig or platform.
4. Road traffic legislation : any bodily injury to any employee while being carried in or upon, or entering or getting onto, or alighting from a vehicle for which insurance or security is required under any road traffic legislation or where you are entitled to indemnity from any other source.

2. Claims outside the applicable courts : Any claim, including arbitration, brought outside the countries set out in the schedule under applicable courts.

This applies to proceedings in the applicable courts to enforce, or which are based on, a judgment or award from outside the applicable courts.

How much the insurers shall payunder the scope of the Policy: The insurers shall  pay up to the limit of indemnity shown in the schedule, unless limited below, for all claims and their defence costs which arise from the same accident or event.

Special limits

Terrorism : The most the insurers shall pay for claims and their defence costs arising from terrorism is the amount shown in the schedule. If insurers decide that this limit applies to a claim, it is the responsibility of the insured to prove that the claim does not arise from terrorism.

Criminal proceedings costs : The insurers shall pay up to the amount shown in the schedule for the costs to defend criminal proceedings. This applies to all actions brought against the insured during the period of insurance.

Court attendance compensation : The insurers shall pay to the insured the specified minimum and maximum compensation for each day, or part day subject to a maximum of policy limit during the period of insurance.

Insured’s obligations

The insurers shall not make any payment under this section:

1. If a problem arises unless the insurer shall notify them of any claim or threatened claim against them under this section, immediately quoting the Policy number and relevant details. At the askance of the insurers the insured must confirm the facts in writing within 30 days with as much information as is available with them.
2. Unless the insured has notified the insurers as soon as practicable of any threatened criminal action by any governmental, administrative or regulatory body.
3. If, when dealing with theiremployee or a third-party,  the insured has admitted that they are liable for what has happened or make any offer, deal or payment, unless the insured you have prior written agreement from the insurers.

Control of defence : The insurers shall have the right, but not the obligation, to take control of and conduct in the name of the insured, the investigation, settlement or defence of any claim. If the insurer’s think it necessary they will appoint an adjuster, advocate or any other appropriate person to deal with the claim. 

The insurers may appoint insured’s advocate but on a similar fee basis as per schedule of the insurers and only for work done with insurer’s prior written approval. Proceedings will only be defended if there is a reasonable prospect of success and taking into account the commercial considerations of the costs of defence.

Compulsory insurance clause : This insurance is in accordance with the provisions of Employee’s Compensation Insurance: Employee’s Compensation Insurance Act.

Third Party Liability (Public Liability) Insurance Section 

What is covered : Claims against the insured : If, as a result of insured’s  activities, any party brings a claim against them for:

1. Bodily injury or property damage occurring during the period of insurance;
2. Invasion of privacy committed during the period of insurance,

The insurers shall indemnify the insured against the sums they shall have to pay as compensation.

This includes a claim against any sub-contractor, outsourcer, employee or volunteer worker of the insured when they are acting on behalf of the insured in  whatever capacity.

The insurers shall  also pay defence costs but shall  not pay costs for any part of a claim not covered by this section.

Claims against principals : If, as a result of insured’s activities, any party brings a claim, which falls within the scope of What is covered, Claims against the insured, against a customer of insured’s activities for whom they are providing services under contract or agreement and they are liable for that claim, the insurers shall treat such claim as if made against the insured and make the same payment to such customer that the insured would have made to the insured, provided that the party to be indemnified:

1. Has not, in our reasonable opinion, caused or contributed to the claim against them;
2. Accept that the insurer can control the claim’s defence and settlement in accordance with the terms of this section;
3. Has not admitted liability or prejudiced the defence of the claim before the insurers are notified of it;
4. Give the insurer all the information and co-operation reasonably required by the insurers for dealing with the claim.

Cross liabilities : If more than one insured is named in the schedule, the insurer shall deal with any claim as though a separate policy had been issued to each of them provided that their liability in the aggregate shall not exceed the limit of indemnity shown in the schedule.

Criminal proceedings costs : If any governmental, administrative or regulatory body brings any criminal action against the insured during the period of insurance for any breach of statute or regulation directly relating to any actual or potential claim under this section, the insurers shall pay the costs incurred with their prior written consent to defend such an action against the insured or any employee of the insured.

Additional cover

Court attendance compensation: The insurers shall pay to the insured the specified minimum and maximum compensation for each day, or part day subject to a maximum of policy limit during the period of insurance.

What is not covered

1. No claim shall be paid for any claim or loss directly or indirectly due to: Property for which the insured is responsible
2. loss of or damage to any property belonging to the insured or which at the time of the loss or damage is in their care, custody or control. This does not apply to:
3. Employees’ or visitors’ vehicles or effects while on insured’s premises;
4. Premises, including their contents, which are not owned or rented by the insured, where they are temporarily carrying out their activities;
5. Premises rented to the Insured, for loss or damage not insurable under property insurance policies and for which the insured would not be liable other than by the lease or other agreement.
6. The ownership, possession, maintenance or use by the insured or on their behalf of any aircraft or other aerial device, hovercraft, watercraft or any mechanically propelled vehicles and their trailers.  This does not apply to:
7. Any drone;
8. The loading or unloading of any vehicle off the highway.
9. Injury to employees : bodily injury to any person arising out of and in the course of their employment under a contract of service or apprenticeship with you.
10. Pollution :
11. Any pollution of buildings or other structures or of water or land or the atmosphere; or
12. Any bodily injury or property damage directly or indirectly caused by pollution, 

Unless caused by a sudden, identifiable, unintended and unexpected incident which occurs in its entirety at a specific time and place during the period of insurance;

1. Any pollution occurring in the United States of America or Canada.
2. Computer virus : Transmission of a computer virus.
3. Professional advice : Designs, plans, specifications, formulae, directions or advice prepared or given by the insured in relation to their activities and responsibilities as a Drone pilot before, during or after any flight.
4. Your products : Any products.
5. Inefficacy : Inefficacy.
6. Deliberate or reckless acts : any act, breach, omission or infringement the insured deliberately, spitefully, dishonestly or recklessly commit, condone or ignore which could reasonably be expected to cause injury or damage to another party even if such injury or damage is of a different degree or type than could reasonably have been anticipated.
7. Personal use : The use of any drone for:
8. Personal or recreational purposes;
9. Any competitive purposes, including racing and stunt flying.
10. Hazardous premises: any work undertaken by the insured or on their behalf which takes place in, on or over any, airport, aerodrome or aircraft tower.
11. Armed forces : Armed forces activities including operations, exercises and training.
12. Substance abuse : The insured taking or using alcohol or any narcotic or controlled substance, other than drugs which are:
13. Prescribed by such person’s medical practitioner; and
14. Only used in accordance with the medical practitioners and manufacturer’s warnings, precautions and instructions for use.
15. Bona fide sub-contractors: Any work undertaken by bona fide sub-contractors in connection with insured’s activities unless the insured has taken all reasonable steps to ensure that they have and maintain in force public liability insurance with a limit of indemnity of not less than the limit which is held by the insured. The insurers shall not make any payment for any claim or loss where the insured fails to demonstrate to insurers satisfaction that they have complied with this requirement.
16. Contracts : Insured’s liability under any contract which is greater than the liability you would have at law without the contract.
17. Date recognition : Date recognition.
18. Nuclear : Nuclear risks.
19. Asbestos : Asbestos risks.

1. The insurers shall not make any payment for:
2. Restricted recovery rights : That part of any claim where insured’s right of recovery is restricted by any contract.
3. Non-compensatory payments : Fines and contractual penalties, punitive or exemplary damages.
4. Claims outside the applicable courts : Any claim, including arbitration, brought outside the countries set out in the schedule under applicable courts.

This applies to proceedings in the applicable courts to enforce, or which are based on, a judgment or award from outside the applicable courts.

Claims outside the geographical limits

4. Any claim brought against you resulting from work you undertake in any country outside the geographical limits.

How much the Insurers shallpay : The most the insurers shall pay for the total of all claims, losses and defence costs is the single limit of indemnity shown in the schedule, irrespective of the number of claims. The insured must pay the excess shown in the schedule for each claim, including defence costs. 

Special limits

War : The most the insurers shall pay for the total of all claims, losses, and their defence costs arising directly or indirectly from war during the period of insurance up to the limit specified in the Schedule of the Policy.

Terrorism : The most we will pay for the total of all claims, losses, and their defence costs arising directly or indirectly from terrorism during the period of insurance up to the limit specified in the Schedule of the Policy..

Hi-jacking and confiscation : The most we will pay for the total of all claims, losses, and their defence costs arising directly or indirectly from hi-jacking and confiscation during the period of insurance upto the limit specified in the Schedule of the Policy.

Pollution : The most we will pay for defence costs in relation to pollution claims upto the limit specified in the Schedule of the Policy.

Criminal proceedings costs : The most we will pay for the costs to defend criminal proceedings upto the limit specified in the Schedule of the Policy. This applies to all actions brought against you during the period of insurance.

Court attendance compensation : The insurers shall pay to the insured the specified minimum and maximum compensation for each day, or part day subject to a maximum of policy limit during the period of insurance.

Paying out the limit of indemnity : At any stage the insurers  can pay to the insured the applicable limit of indemnity or what remains after any earlier payment from that limit. The insurers shall pay defence costs already incurred at the date of  payment. The insurers shall then have no further liability for those claims or their defence costs.

Insured’s Obligations : No claim shall be paid under this Section unless : 

If a problem arises unless the insurer shall notify them of any claim or threatened claim against them under this section, immediately quoting the Policy number and relevant details. At the askance of the insurers the insured must confirm the facts in writing within 30 days with as much information as is available with them.

Unless the insured has notified the insurers as soon as practicable of any threatened criminal action by any governmental, administrative or regulatory body.

If, when dealing with a client or a third party, the insured admitted that they are liable for what has happened or made any offer, deal or payment, unless they have insurer’s prior written agreement. The insured must not reveal the amount of cover available under this insurance, unless they have to give these details in negotiating a contract with their client or have insurer’s prior written agreement.

Control of defence : The insurers shall have the right, but not the obligation, to take control of and conduct in the name of the insured, the investigation, settlement or defence of any claim. If the insurer’s think it necessary they will appoint an adjuster, advocate or any other appropriate person to deal with the claim. The insurers may appoint insured’s advocate but on a similar fee basis as per schedule of the insurers and only for work done with insurer’s prior written approval. Proceedings will only be defended if there is a reasonable prospect of success and taking into account the commercial considerations of the costs of defence.

Several liability : Where it is shown in in the schedule that cover under this policy is provided by more than one insurer, each insurer is liable only for its own specified limits of indemnity, amounts insured and obligations in accordance with the terms and conditions of the policy. If any insurer shown in the schedule is unable to meet any of its obligations for any reason, in whole or in part, no responsibility for meeting those obligations will be assumed by any other insurer shown in the schedule.