Recreational drone users may face greater third-party liability risk under regulations introduced last September, the Insurance Council of Australia (ICA) says.

ICA does not support mandatory insurance provisions, and prefers for the Civil Aviation Safety Authority (CASA) to educate users about the liability risks they face.

“Recreational [drone] operators may have cover available for loss or theft of their system under a general home and contents policy or a specialist drone insurance
product,” ICA says in a submission to the Government.

“That said, very few recreational operators will have third-party liability insurance to cover damage or injury caused by [drones] under their control.

“Unfortunately, most recreational drone users do not appear to be aware of the potential liability and financial costs associated with system failure or operator error.”

Under the new CASA regulations commercial operators of remotely piloted aircraft below 2kg no longer need a remote operator’s certificate or a remote pilot licence. However, they must register with CASA five days before their first flight, and meet safety regulations.

Recreational users can fly sub-2kg drones for commercial gain under the changes.

“The changes will result in [drone] operators, with no recognised training or formal understanding of the potential risks… operating systems in potentially crowded areas, near critical infrastructure and assets,” ICA says.

It warns that the move away from professional operators to amateur operators “will inevitably lead to an increase in incidents of third-party damage and injury”.

QBE says removing the licence requirement for commercial drone operators “may pose a safety risk”, and it believes the condition should be reinstated.

The insurer’s submission calls on the Government to make insurance mandatory for some drone operators. “This would ensure members of the public who are injured or suffer damage to property caused by a [drone] would be able to access compensation for their injury or property damage,” QBE says.