'Drones for Hobby and Leisure Use... "Mandatory Insurance Enrollment Needed"'
[Asia Economy Reporter Oh Hyung-gil] As drones become more popular, the number of people enjoying them as a hobby or for leisure is increasing. However, concerns are rising that safety accidents and illegal flights are becoming more likely, while victims remain in a blind spot for damage relief.
According to the insurance industry on the 1st, the drone market is experiencing rapid growth based on the government's drone promotion policies. The government aims to grow the domestic drone market to 4.4 trillion KRW and the commercial drone fleet to 50,000 units by 2026.
The mandatory registration requirements for drone airframes are also gradually expanding. To manage drone risks, the government lowered the mandatory registration threshold for non-commercial drones from 12 kg to 2 kg in May last year. Additionally, in December last year, the mandatory insurance subscription was expanded from commercial drones to include public use drones.
However, non-commercial drones are currently not required to have liability insurance, so owners must voluntarily subscribe to insurance.
According to the report "Current Status and Improvement Measures for Drone Risk Management" released by the Korea Insurance Research Institute, as of the end of September last year, a total of 15,025 drones used commercially or exceeding 12 kg were registered.
However, insurance subscription for non-commercial drones remains insufficient. If an accident occurs caused by a non-commercial drone without insurance, it is difficult to receive compensation.
Researcher Han Sang-yong of the Korea Insurance Research Institute explained, "Most mandatory insurance in Korea sets limits on compensation for third-party damages (KRW 150 million for property damage, KRW 20 million for bodily injury). We can consider applying similar compensation limits for non-commercial drones."
Major foreign countries such as the United States, Japan, and China already have insurance companies selling comprehensive drone insurance products.
Legislative Research Officer Koo Se-ju of the National Assembly Legislative Research Office recently argued in a report that "mandatory insurance subscription for non-commercial drones should also be considered."
Currently, drone operators, as well as national and local governments and public institutions, are obligated to subscribe to insurance or mutual aid.
Since July 27, 2012, mandatory insurance for commercial drones was limited to bodily injury liability, but from December 10, 2020, it was expanded to include property damage liability, and the obligation to subscribe was extended from operators to include national and local governments and public institutions.
Officer Koo explained, "It is necessary to collect, analyze, and share various statistics related to drone accidents to encourage the calculation of fair insurance rates."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
