BENGALURU: Owners of small aircraft in Bengaluru are reeling with their two-seater microlight aircraft or powered hang-gliders grounded this financial year as they have been denied airworthiness certification by the Directorate General of Civil Aviation (DGCA). But while the aviation regulator has made it mandatory for the aircraft to be insured before handing over this certificate, most insurance companies refuse to insure them with just one willing to do it for Rs 20 lakh per annum.
The microlight or glider is priced between Rs 20 lakh and Rs 75 lakh. This single-engine aircraft, a two-seater, is flown mostly as a hobby by flying enthusiasts or deployed for training purposes.
Captain Arvind Sharma, the country’s first micro-light licence-holder and founder of Jakkur-based Agni Aero Sports Adventure Academy Pvt Ltd, has filed a case in the High Court against the DGCA over the issue and the hearing is still on.
BG Kumar Swamy, owner of Bangalore Aviation and Sports Enterprises, told TNIE, “Bengaluru being the aviation hub of the country has 12 small aircraft, including micolights and gliders. I own both. A DGCA rule stating that insurance is required has existed for decades. But it is only this year that their officials are insisting that it must be produced for certification. I have tried multiple insurance firms over the last six months, but I’ve have drawn a blank.”
Vinitha Mariappa, who owns a microlight, said, “I tried to get my DGCA certification in March. I could not find anyone to insure it and it is November now. These are serviceable, fit aircraft and not running the engines for six months will damage it. It is not safe to fly an aircraft which has been idle for so long. Students are waiting to learn on them, but we cannot operate them.”
Vishal Shroff, a flying hobbyist, said, “My powered hang glider, which I purchased for Rs 40 lakh in 2021, is presently languishing at Jakkur. I am paying Rs 15,000 a month as parking fee. I have flown such gliders in Australia, New Zealand, Philippines, Thailand, Dubai, Canada and the US. Nowhere have I faced this issue.”
Proprietor of Pune-based Max Link is unable to collect two of his brand new aircraft for the last two years from the Bengaluru-based Albatross Flying Systems despite all obtaining all certificates and making the payments. “I am unable to fly them from Bengaluru to Pune without an airworthiness certificate which requires an insurance policy. They are just sitting in the hangar of the firm for the last two years. Nowhere in the world does this happen.”
Explaining that he paid Rs 52 lakh per piece, Sethi produced documents which revealed that The New India Assurance Company Limited had given him a premium quotation in May 2024 for Rs 20 lakh per aircraft per year. “This is just an indirect manner of saying they are not willing to go ahead with the insurance. Will anyone pay a premium that is nearly 40 per cent of the aircraft cost? If they charge me up to Rs one lakh annually per aircraft, I am ready to pay. We only pay Rs 60,000 as annual premium for a Mercedes car, which is much costlier.”
Multiple calls to the airworthiness department of the DGCA in both Bengaluru and its headquarters in New Delhi went unanswered. A DGCA official told TNIE, “We do not want to comment on it as the matter is in court now.”
WHY INSURANCE COMPANIES BACKING OFF?
A representative from an insurance brokerage firm told TNIE, “I have checked with the big four government concerns and many private insurance firms about it due to requests from aircraft owners. The main reason is they have made an assessment on claims made over the last ten years and found these small aircraft encounter more incidents compared to the bigger aircraft.
There was one microlight incident too in July 2022 at Jakkur Flying Training School which went unreported until the DGCA got to know about it. (The New Indian Express exposed it). Moreover, the ongoing war between Russia and Ukraine as well as Israel and Palestine has made the situation very hot for the aviation industry. Insurance premiums have shot up enormously. Insurance is just given for some categories of aircraft.”