Tag Archives: lessors

New India Assurance launches ‘New India Unmanned Aircraft System Insurance’

New India Assurance has launched ‘New India Unmanned Aircraft System (UAS/UAV/RPAS/Drone) Insurance’.

The New India Unmanned Aircraft System Insurance will cover large aircraft to solo flying gliders. Coverage will be offered to drone owners, operators and manufacturers. The product provides a diverse option of over 15 different add-on covers for customers to pick and choose from. These add-on covers are designed as per the drone industry’s requirement. The policy covers physical damage to the aircraft and its theft. It also provides cover for accidental physical injury to the third party and/or damage to their property due to the aircraft’s operations.

The policy is designed to cover fixed wing, rotor wing & hybrid UAS that can be controlled remotely (with pilot intervention) or autonomous drones (without pilot intervention). These aircraft are generally deployed for military and non-military applications, including surveillance, geography and infrastructure inspections, aerial photography, etc.

Commenting on the product’s launch, Neerja Kapur, Chairman cum Managing Director, said, “India’s drone manufacturing industry clocked annual sales of INR 60 crores in FY 2021 and is expected to grow to INR 900 crores by FY 2024. Thanks to the impetus given by the Government of India through the liberalised Drone Rules, 2021, India has the potential to be a global drone hub by 2030. As the pioneers in Indian aviation insurance, we aim to develop insurance products of a global standard. With our aviation insurance products, we hope to contribute to India’s anticipated aviation revolution.”

MoCA proposes law to enable lessors to repossess aircraft during dispute

The Ministry of Civil Aviation (MoCA) has proposed a new law that will help international aircraft leasing companies to reposess and transfer planes out of India in case of a financial dispute with an Indian airline at a time many regional airlines have been refused planes on rent, reports The Hindu.

The Ministry has sought stakeholders’ comments on the draft Protection and Enforcement of Interests in Aircraft Objects Bill, 2022. The Bill implements the provisions of the Convention on International Interests in Mobile Equipment and Protocol on Matters Specific to Aircraft Equipment which was adopted at a conference in Cape Town in 2001. India acceded to the two instruments in 2008. These provide default remedies for the creditor and create a legal regime for disputes.

In its explanatory note, the Ministry says the draft legislation is necessary because several Indian laws such as the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016 are in conflict with the Cape Town Convention and Protocol. It says that Indian entities have also suffered as international financial institutions demand an implementing legislation.

The proposed law provides remedies such as repossession of an aircraft object, or its sale or lease or collection of income from its use as well as de-registration and export of planes. It also suggests remedies pending final adjudication of a claim as well as safeguards a debtor’s claim during insolvency proceedings against its Indian buyer.

“Many smaller airlines are finding it challenging to get leased aircraft as lessors see a lot of exposure because the cost of recovery of assets is exorbitant and time consuming” says Vishok Mansingh of Vman on why this legislation is important. International leasing companies also faced challenges in reposessing and exporting aircraft when Jet Airways shut down in 2019 and failed to pay its aircraft rentals. (Source: The Hindu)