Global drone sales are growing rapidly and estimated to reach approximately EUR 6 billion in 2016. According to forecasts by the Aeronautical Association of Slovenia, as many as around 40,000 unmanned aerial vehicles were sold last year in Slovenia alone for both professional and private use. Their increasing accessibility and subsequent mass use raises many questions related to safety and, therefore, insurance. To this end, Zavarovalnica Triglav has decided to expand its product range to include liability insurance and comprehensive insurance for drones.
Slovenia has not yet introduced any special legislation governing the use of unmanned aerial vehicles (hereinafter: the UAV). This is currently regulated by the Aviation Act and other legal regulations on aviation. Recently, a draft decree on UAV has been put forward, which also includes a provision on insurance, and the Slovenian Civil Aviation Agency has issued the Directive on the Safe Use of Unmanned Aerial Vehicles, but in practice the same rules still apply for drones as for model aircraft. In addition, the liability insurance of UAV owners is regulated by the Compulsory Motor Third-Party Liability Insurance Act and Regulation (EC) No 785/2004. Liability insurance is compulsory for vehicles with a maximum take-off weight of more than 20 kg.
UFO – UAV
However, even lighter vehicles than this can cause significant damage, either in the air or when crashing. At an Alpine Ski World Cup race last December, for example, a camera drone crashed directly behind an Austrian racer. Only a few hundredths of a second separated this skier from a tragic accident. Accidents, however, also happen in Slovenia. For example, at a public event last year, a drone controlled by an unknown person injured one of the members of the event organiser’s team. The question of who covers the damage to property and non-material damage that can be caused in these types of accidents is therefore by no means trivial, and responsible drone owners can protect their property interests by taking out liability insurance.
Although only business users can take out comprehensive insurance, liability insurance is available to all
To this end, Zavarovalnica Triglav has added insurance cover for UAV to its range of services, and is the first insurance company in Slovenia to do so. It has prepared comprehensive insurance cover for business users and voluntary liability insurance cover for private users. Comprehensive insurance covers partial or full damage to or loss of the UAV caused by any of the threats listed in the terms and conditions, such as a fall or a crash into a tree or a building. Comprehensive insurance may only be taken out if the UAV is listed as an underlying asset for the registered activity. However, comprehensive insurance covers only damage caused to the drone. Voluntary liability insurance, on the other hand, which can be taken out by every drone owner, covers the owner’s liability for damage caused to third parties.
Margita Selan Voglar, the transport insurance manager at Zavarovalnica Triglav had the following to say: “The market for comprehensive drone insurance is developing gradually. However, the development of UAV technology has been rapid and its applicability is extremely wide. Especially considering their speed and manoeuvring capabilities, which affect safe handling, thought should also be given to suitable liability insurance for vehicles with a take-off weight of less than 20 kg, with account taken of the maximum possible speed. It is important to note that many risks can arise from the use of drones, and people should protect themselves appropriately from these. At the same time, the rules regarding the responsible use of these vehicles should not be ignored.”
Drones: dangers and consequences
Zavarovalnica Triglav is certain that the range of insurance products offered will eventually expand to include sports-related, recreational and competitive uses; this will occur in parallel with the development and provision of a normative framework and as more experience is acquired by policyholders and insurance companies. All those who are considering purchasing a drone are advised to take heed of the potential dangers and consequences associated with irresponsible use, all of which are discussed in detail on the Everything Will Be All Right website.