Drone Insurance

Comprehensive drone insurance that provides cover for loss, theft and damage of your drone as well as third party liability cover. The cover attached to this policy is subject to terms and conditions stated in the policy wording to be read in conjunction with the policy schedule.

To understand what you are and are not covered for you need to read the policy Terms & Conditions and Policy Schedule emailed to you carefully. A summary of each section included is shown below.



Underwritten by: Mutual & Federal , an authorised FSP

Fast Facts

  • Covers loss, theft and damage to your drone
  • Third party legal liability
  • Offered to Qualified & Unqualified persons
  • Competency qualifications will enable access to enhanced benefits

*Acquire your competancy qualification to get the best cover

from

ZAR 513,00 pa

Quote and Buy



Definitions

"Accident" and “accidental” means any direct physical loss caused by one event or series of events arising out of one original cause or source. “Accidental” damage must be caused by acts that were sudden, unexpected and not deliberate.

Cyber-attack” means

  • hacking attacks resulting in the theft of the Drone; or
  • hacking attacks resulting in the encryption of data that may be stored on cameras or payloads of the drone; or
  • hacking attacks resulting in theft of personally identifiable information; or
  • theft of photos that are on any camera or payload that results in any form of cyber bullying

Damage” means accidental loss of or damage to tangible property belonging to a third party.

DRA Events” means Drone racing events, organised and hosted by Drone Racing Africa (DRA), for pilots who have completed a DRA course or are currently flying.

Drone” means “remotely piloted aircraft” viz. an unmanned aircraft which is piloted from a remote pilot station, excluding model aircraft and toy aircraft as defined in the SACAA Regulations but including a “remotely piloted aircraft system” viz. a set of configurable elements consisting of a remotely piloted aircraft, its associated remote pilot station(s), the required command and control links and any other system elements as may be required at any point during flight operation.

Excess” means the amount that must be paid by you in respect of a claim or series of claims arising out of one original cause or source before any amount is payable by us.

"Flight" means from the time the drone is switched on, moves forward in taking off or attempting to take off, whilst in the air, and until the drone completes its landing run. A rotary-wing drone shall be deemed to be in flight when the drone is switched on and the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation.

Injury” means accidental death of or bodily injury to or illness of a third party.

Insured” means the policyholder and the operator.

OEM” means original equipment manufacturer.

Operator” means the person named in the schedule who is operating, controlling or piloting the drone.

"Overhaul Cost" means the costs of labour and materials, excluding wear and tear components, (including but not limited to batteries etcetera) which are or would be required in the overhaul or replacement (whichever is necessary) at the end of the overhaul life of the damaged or a similar unit. The claims assessor will have the final right to determine the overhaul costs

"Overhaul Life" means the amount of use, operational or calendar time which, according to the Regulations or the Manufacturer’s requirements, determines when overhaul or replacement of a unit is required.

Payload' means the cargo or equipment a drone carries that is not required for flight, control and navigation. Such equipment may or may not be supplied with the drone by the OEM and is capable of enhancing the utility of the drone on, which it may or may not be installed. The value of the payload and drone are separately accounted for in the schedule.

"Personal and Private Use" means use that does not yield a commercial benefit in the form of profit, turnover, interest or gain and is used neither for business or professional purposes nor for hire or reward.

policy” means the wording and schedule read together as the contact of insurance between you and us.

SACAA” means South Africa Civil Aviation Authority.

SAPS” means South Africa Police Services.

Schedule” means that part of the policy that specifies details of the insured, the premises, the property insured and any excess, endorsements and conditions applicable.

Take-off weight” means the total weight including any payload for which the drone has been authorised in accordance with OEM specifications or regulated weight restrictions, however, in any event not exceeding seven (7) kilograms.

Third Party” means any person natural or juristic claiming compensation from the insured in respect damage or injury.

"Unit" means a part or an assembly of parts (including any sub-assemblies) of the drone which has been assigned an overhaul life as a part or an assembly. Nevertheless, an engine complete with all parts normally attached when removed for the purpose of overhaul or replacement shall together constitute a single unit.

“We or Us or Our” means Transact & Protect as Underwriting Management Agent and/or Mutual & Federal Risk Financing Limited as Insurer or their agent.

“You or Your or Yourself” means the policyholder and operator named in the schedule.

Scope of Cover

We agree to insure You against any loss, damage or legal liability, arising out of an accident occurring during the period of insurance, subject to the excess and limit or sublimit stated in the schedule and all other terms and conditions of this policy which may apply and in the manner provided in Section I and Section II of this policy.

General Conditions

It is necessary that you observe and fulfil the following conditions before we incur any liability to make any payment under this policy.

  1. Misrepresentation, mis-description or non-disclosure in any material particular shall render voidable the particular item, section or sub-section of the policy, as the case may be, affected by such misrepresentation, mis-description or non-disclosure. You must observe all statutory requirements relating to liability, privacy and any other laws enforceable by any official authority, in particular the SACAA legislation and regulations applicable to operations of a drone.
  2. Notwithstanding the authority of the SACAA to enforce regulations against you, you are obliged to comply with all regulation and/or legislation relating to the private flying of drones.
  3. Duty of care – you must take all reasonable precautions and all reasonable care to prevent or minimise loss, damage, death, injury or liability.
  4. Other insurance – if, at the time of any event giving rise to a claim under this policy, an insurance exists with any other insurer/s covering the you against the defined events, we shall subject to the terms, conditions and applicable excess of this policy be liable to make good only a rateable proportion of the amount payable by or to you in respect of such event. If any such other insurance is subject to any condition of average, this policy, if not already the subject to any condition of average, shall be subject to average in like a manner.
  5. Adjustment of premiumwe may change your premium at any time. We will provide you with 30 days’ notice in writing to the address stated in the schedule or at the e-mail address stated in the schedule prior to implementing any change.
  6. No rights to other persons – Unless otherwise provided, nothing in this policy shall give any rights to any person other you. Any extension providing indemnity to any person other than you shall not give any rights of claims to such person, the intention being that you shall claim on behalf of such person. Payment to you or on your behalf shall in every case be a discharge of our liability.
  7. Fraudulent or wilful actsyou will lose all rights to claim under this policy and the policy shall become voided if:

                       7.1.      a claim is fraudulent or if you or anyone acting on your behalf uses any fraudulent means to obtain any benefit under this policy; or

                       7.2.      a claim occurs due to a deliberate, or wilful, or intentional act committed by you or with your involvement or anyone acting on your behalf; or

                       7.3.     information or documents in support of a claim, whether created by you or on your behalf, is not true, is not complete or is fraudulent; or

                       7.4.      the quantum of a claim is deliberately exaggerated by you or anyone acting on your behalf

General Exclusions

What we will not pay for:

1. War, riot and terrorism

(A) This policy does not cover loss of or damage to property directly or indirectly related to or caused by:

i) civil commotion, labour disturbances, riot, strike, lockout or public disorder or any act or activity which is calculated or directed to bring about any of the afore-going;

ii) war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not) or civil war;

iii) mutiny, military rising, military or usurped power, martial law or state of siege, or any other event or cause which determines the proclamation or maintenance of martial law or state of siege; insurrection, rebellion or revolution;

iv) any act (whether on behalf of any organisation, body or person or group of persons) calculated or directed to overthrow or influence any State or Government or any provincial, local or tribal authority with force or by means of fear, terrorism or violence;

v) any act which is calculated or directed to bring about loss or damage in order to further any political aim, objective or cause, or to bring about any social or economic change, or in protest against any State or Government or any provincial, local or tribal authority, or for the purpose of inspiring fear in the public or any section thereof;

vi) any attempt to perform any act referred to in clause (iv) or (v) above;

vii) (the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in clauses (i), (ii), (iii), (iv), (v) or (vi) above.

If we allege that, by reason of clauses (i), (ii), (iii), (iv), (v), (vi) or (vii) of this exclusion, loss or damage is not covered by this policy, the burden of proving the contrary shall rest on the you.

(B) This policy does not cover loss or damage caused directly or indirectly by or through or in consequence of any occurrence for which a fund has been established in terms of the War Damage Insurance and Compensation Act, 1976 (No. 85 of l976) or any similar Act operative in any of the territories to which this policy applies.

(C) Notwithstanding any provision of this policy including any exclusion, exception or extension or other provision not included herein which would otherwise override a general exception, this policy does not cover loss of or damage to property or expense of whatsoever nature directly or indirectly caused by, arising out of or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any sequence to the loss, damage or expense.

For the purpose of this exclusion 1(C) an act of terrorism includes, without limitation, the use of violence or force or the threat thereof whether as an act harmful to human life or not, by any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government or any other person or body of persons, committed for political, religious, personal or ideological reasons or purposes including any act committed with the intention to influence any government or for the purpose of inspiring fear in the public or any section thereof.

If we allege that, by reason of clause 1(C) of this exclusion, loss or damage is not covered by this policy, the burden of proving the contrary shall rest on you.

2. Nuclear Hazard

Any losses, costs or expenses arising directly or indirectly out of nuclear reaction, nuclear radiation or radioactive contamination of any kind, irrespective of whether other causes have contributed to the claim.

3. Asbestos

Any actual or alleged liability whatsoever for any claim or claims in respect of loss or losses directly or indirectly caused by, arising out of, resulting from, in consequence of, in any way involving, or to the extent contributed to by, the hazardous nature of asbestos in whatever form or quantity.

4. Detention, Confiscation and Forfeiture

Any loss, damage, cost or expense directly or indirectly arising from detention, confiscation, forfeiture, impounding or requisition legally carried out by customs, Police Services, crime prevention units or other officials or authorities.

5. Sanction Limitation and Exclusion Clause (LMA3100: as amended)

We shall be deemed not to provide cover and we shall not be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose us to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America

6. Date Recognition Exclusion Clause (AVN2000A: as Amended)

This policy does not cover any claim, damage, injury, loss, cost, expense or liability (whether in contract, delict, negligence, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from or occasioned by or in consequence of (whether directly or indirectly and whether wholly or partly):

(a) the failure or inability of any computer hardware, software, integrated circuit, chip or information technology equipment or vehicle (whether in your possession or of any other person) accurately or completely to process, exchange or transfer year, date or time data or information in connection with any change of year, date or time; whether on or before or after such change of year, date or time;

(b) any implemented or attempted change or modification of any computer hardware, software, integrated circuit, chip or information technology equipment or vehicle (whether in your possession or of any other party) in anticipation of or in response to any such change of year, date or time, or any advice given or services performed in connection with any such change or modification;

(c) any non-use or unavailability for use of any property or equipment of any kind whatsoever resulting from any act, failure to act or decision of you or of any other person related to any such change of year, date or time;

7. and any provision in this policy concerning any of our duties to investigate or defend claims shall not apply to any claims so excluded.

8. Computer Loss General Exclusion

General Exclusion applicable to all sections of this policy insuring damage to property ort the consequences of damage to property or any liability

Notwithstanding any provision of this policy including any special exclusion or extension or other provision not included herein which would otherwise override a general exclusion, this policy does not cover:

(a) loss or destruction of or damage to any property whatsoever (including a computer) or any loss or expense whatsoever resulting or arising therefrom;

(b) any legal liability of whatsoever nature

(c) any consequential loss;

directly or indirectly caused by or contributed to by or consisting of or arising from the incapacity or failure of any computer, correctly or at all,

i) to treat any date as the correct date or true calendar date, or correctly or appropriately to recognise manipulate interpret process store receive or to respond to any data or information, or to carry out any command or instruction, in regard to or in connection with any such date or

ii) to capture save retain or to process any information or code as a result of the operation of any command which has been programmed into any computer, being a command which causes the loss of data or the inability to capture save retain or correctly to process such data in regard to or in connection with any such date or

iii) to capture save retain or to process any information or code due to programme errors, incorrect entry or the inadvertent cancellation or corruption of data and r programmes

iv) to capture save retain or to process any data as a result of the action of any computer virus, or other corrupting, harmful or otherwise unauthorised code or instruction including any trojan horse, time or logic bomb or worm or any other destructive code, media or programme or interference.

A computer includes any computer, data processing equipment, microchip, integrated circuit or similar device in computer or non-computer equipment or any computer software, tools, operating system or any computer hardware or peripherals and the information or data electronically or otherwise stored in or on any of the above, whether the property of the Insured or not.

9. Any loss, damage or liability arising from as a result of or contributed to by a cyber-attack. or breach in the operating system as a result of a cyber-attack.

10. Any loss, damage or liability whilst the drone is being used for any illegal purpose.

11. Any loss damage or liability whilst the drone is operated by a person under the influence of alcohol, drugs or narcotics unless the drug or narcotic is prescribed by and taken in according to the instructions of a doctor other than the operator himself.

12. Any loss, damage or liability whilst the drone is used for any commercial or deemed commercial purpose.

13. Any loss, damage or liability whilst the drone is being used in contravention of the SACAA Legislation or Regulations.

14. Any loss, damage or liability whilst the drone is outside the geographical limits stated in the Schedule unless such loss, damage or liability is suffered by an in flight drone that is forced outside of the territorial scope due to adverse weather conditions.

15. Any loss, damage or liability whilst the drone is being operated by any person other than the you or the operator named in the schedule.

16. Any loss, damage or liability where the you have failed to comply with the drone manufacturer’s guidelines, manual and instructions.

17. Any loss, damage or liability arising from as a result of or contributed to by any drone which has a maximum take-off weight (including payload) exceeding seven (7) kilograms.

18. Any liability arising from as a result of or contributed to by you assuming liability or waivering your rights under any agreement except to the extent that such liability would have attached to you in the absence of such agreement.

19. Any fines or penalties or any exemplary or vindictive damages imposed upon you.

20. Hi-jacking or any unlawful seizure or wrongful exercise of control of the drone issuing office in flight (including any attempt at such seizure or control) of the drone acting without your consent.

(a) In addition, this policy does not cover claims arising whilst the drone is outside your control by reason of any of the above perils.

(b) The drone shall be deemed to have been restored to your control on the safe return of the drone to you at an airfield not excluded by the geographical limits of this policy, and entirely suitable for the operation of the drone (such safe return shall require that the drone be parked with engines shut down and under no duress).

21. Any loss, damage or liability arising from as a result of or contributed to by the drone being used for competitive purposes, including racing and stunt flying. However, if stated in the schedule loss, damage or liability arising from as a result of or contributed to by the drone being used at DRA Events is not excluded hereunder

22. To loss, damage or liability whilst operating the drone indoors.

Claiming

Claiming

Report certain claims to the police

You must report claims that involve crime (for example, theft or malicious damage) to the police as soon as reasonably possible. You must give us the case number.

Tell us about the claim

We must receive notice of your claim as soon as is reasonably possible but no later than 30 days after the insured event, loss or damage occurred. If you do not do so, you lose your right to bring a claim against us. Our contact details appear in the policy.

You must give us:

i) full details of the claim;

ii) details of any other insurance you may have for the insured event

iii) proof, statements, and any other information we ask for; and

iv) any correspondence or other documents (for example, court papers or legal letters have received in relation to the claim

v) Data captured by inbuilt processors, of your drone, the access details of which must also be supplied

If an incident may lead to a claim against you

You must tell us immediately if there is an incident that may lead to a claim against you. If you do not do so, we may decide not to pay compensation for the claim. You must send us copies of any documents (including legal proceedings) relating to the incident

You must not give out any information

Unless we give you our written permission, you must not:

i) admit you are at fault, whether oral or written;

ii) make any promises, give or accept any compensation.

Help to recover compensation

You must give us reasonable help to:

i) take steps against any other person to recover compensation we have paid to you;

ii) identify and recover any items that have been lost or stolen and have been found.

We will reimburse you for the reasonable expenses you incur in helping us. If you do not give us this help, you must reimburse the compensation we paid.

We may conduct legal proceedings in your name

Once we have agreed that a loss is covered by this policy, even if we have not yet made any payment in respect of such loss we shall acquire all your rights and remedies with regard to that loss against any party who is responsible for the loss. We may also undertake in your name any legal proceedings to recover all amounts paid or payable by us under this policy.

You must do all things necessary to assist us in exercising such rights and remedies.

We may accept or reject your claim

We may accept or reject all or any part of your claim.

If we reject your claim, you have 90 days from receiving the rejection letter to object to our decision. You must write to us and give reasons for your objection. If you are out of time, you may not object to our decision.

If your objection is not successful, you have 6 months from the end of the 90-day period or such earlier period when you were advised of your unsuccessful objection to serve summons on us. If you do not do so in this time, we will have no obligations to you under this policy.

You can contact the Ombudsman

We pay compensation for all valid claims under this policy honestly, fairly and promptly. If you believe that we have not done so, and you wish to make a complaint, please contact Surestart offices.

If you are still not satisfied, you have the right to contact the Short Term Insurance Ombudsman. You can find the contact details in the Disclosure notice attached to the schedule.