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Key Insurance issues with Aerial Drones

Dec 6, 2016

Information extracted from:- AIMS White Paper no 2, Drones – Key Issues for Insurance.

Drones are a new phenomenon, and are now being used for a myriad of personal and commercial purposes as well as sporting and recreational usage.

In Australia, one of our leading retailers estimated that in December, more than 4000 Drones with individual values of $2000 or more would be sold prior to Christmas.

The Civil Aviation Safety Authority (CASA) advises that under existing legislation Unmanned Aerial Devices or Drones can be broken up into two distinct groups.

  1. Those used for Sports and Recreation (Personal use)
  2. Those used for Hire or Reward (Commercial use)

Both have different insurance implications, and if used for Hire and Reward, users must have an Operators certificate otherwise they are breaking the law.

Business Insurance policies, ISR, Property or Theft Sections, Farm, Contents Insurance, and Home Content Insurance all exclude aircraft or aircraft parts from their definition of insured contents unless specifically noted in the schedule.

The use of Drones is also regulated, including you must only use the model aircraft in your line of sight in daylight, you must not fly closer than 30 meters to vehicles, boats, buildings or people, you must not fly over any populous area such as beaches, other people’s backyards, heavily populated parks or sports ovals where there is a game in progress, if you are in controlled air space you must not fly higher than 120 meters, and you must not fly within 5.5 kilometers of an airfield.

Non-compliance leaves you open to exposure including CASA fines and penalties, and legal liabilities.

It’s important you speak to your AustBrokers Comsure Adviser, if you have recently purchased a Drone for you or your loved one, to understand what insurance you need. Drones are exciting new technology, but are leaving so many individuals exposed.


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