Refund & cancellation policy

DRONEPILOT MALAYSIA: REFUND & CANCELLATION POLICY

Effective Date: 14 October 2026

Last Revised: 14 October 2026

Governing Laws: Contracts Act 1950; Consumer Protection Act 1999; Electronic Commerce Act 2006; Financial Services Act 2013 (Bank Negara Malaysia); Civil Aviation Act 1969 & CAAM Directives.

1. PRELIMINARY SCOPE & ESCROW ARCHITECTURE

1.1 Scope of Policy

This Refund and Cancellation Policy ("Policy") governs all cancellations, scope revisions, refunds, and financial adjudications between Clients, Remote Pilots/Operators ("Operators"), and DronePilot Malaysia (operating as "DronePilot", "Platform", "we", or "us").

1.2 Nature of Escrow Funds

Funds deposited for commercial drone assignments via Malaysian online banking (FPX) or designated payment gateways are held securely in escrow pending mission fulfillment. DronePilot acts strictly as an administrative escrow agent and communications intermediary. Escrow funds are disbursed, refunded, or partially liquidated solely in accordance with the objective benchmarks, lead-time thresholds, and administrative rules established herein.

2. CLIENT CANCELLATION SCHEDULE & RECOVERY FEES

Drone operations require significant advance preparation, crew scheduling, and equipment lock-out. If a Client elects to cancel an awarded mission, refunds are calculated based on the precise operational stage and mobilization status:

3. OPERATOR-INITIATED CANCELLATIONS & NO-SHOW PENALTIES

DronePilot enforces zero tolerance for unexcused no-shows and unwarranted contractor abandonment.

3.1 Operator Default & Unexcused Cancellation

If an Operator cancels an accepted assignment without substantiated statutory or safety grounds:

1. 100% Client Refund: The Client will receive an immediate 100% refund of all escrowed funds held for that assignment (including all platform and processing fees). 2. Operator Financial Penalties: The defaulting Operator will be assessed an administrative disruption fee equal to 10% of the contract value (or a minimum of RM 200.00), deducted from their next escrow payout. Repeat cancellations (two or more within a rolling 6-month period) trigger immediate revocation of the Operator's "CAAM-Verified" badge and temporary or permanent suspension of bidding privileges.

3.2 Replacement Pilot Matching

At the Client’s request, DronePilot may expedite reassignment of the funded project to another verified CAAM-certified pilot within our network without requiring the Client to re-fund the escrow balance.

4. REGULATORY PERMIT REJECTIONS & AIRSPACE CLOSURES

Commercial drone operations are subject to sovereign statutory oversight by the Civil Aviation Authority of Malaysia (CAAM), JUPEM, and local security agencies (PDRM/CGSO).

4.1 Unforeseen Statutory Rejection (Force Majeure / Security Notice)

Where an application for a CAAM Authorisation to Fly (ATF), JUPEM Akuan Penerimaan Kerja (APK), or State security permit is rejected despite timely, competent submission (e.g., sudden national security restriction, impromptu VIP/Istana buffer deployment, or military exercise NOTAM):

• The Client receives a full refund of remaining escrow funds, less any verifiable, non-refundable statutory processing fees already paid directly to CAAM or JUPEM, and a fixed document preparation allowance (capped at RM 250.00) payable to the Operator.
• Neither party is penalized.

4.2 Untimely or Negligent Filing

If a flight is aborted or blocked because the Operator failed to submit the CAAM ATF within the mandatory fourteen (14) working-day window (under CAD 601), submitted erroneous airframe registration details, or neglected to provide an active RCoC-B license:

• The Client shall receive a 100% refund of all funds.
• The Operator receives zero compensation, bears all out-of-pocket permit losses, and faces immediate compliance review.

5. WEATHER DELAYS, MONSOON STAND-DOWNS, AND FORCE MAJEURE

Under CAAM CAD 601, the Remote Pilot-in-Command (PIC) maintains final, non-delegable authority regarding flight safety. Flights must not occur in conditions exceeding the aircraft manufacturer’s operational envelope (e.g., severe precipitation, tropical thunderstorms, high wind shear, low cloud ceilings, or extreme convective turbulence).

1. Mandatory Rescheduling First: Adverse weather conditions do not constitute valid grounds for an immediate automatic cash refund. The parties must make all reasonable attempts to agree upon an alternate flight window within fourteen (14) calendar days of the original target date. 2. On-Site Weather Stand-Down Allowance: If an Operator mobilizes to the flight coordinates, waits on-site for weather clearance for more than two (2) hours, and safe conditions do not materialize: If the Client elects to permanently abort rather than reschedule, the Operator is entitled to a Stand-Down / Mobilization Fee of RM 350.00 (or 30% of the project contract value, whichever is lower) released from escrow. The remaining balance will be refunded to the Client.

1. Monsoon / Prolonged Force Majeure: If adverse weather persists continuously for more than twenty-one (21) days, making the project commercially or technically impossible, either party may request cancellation. The remaining unearned escrow balance will be refunded to the Client.

6. DELIVERABLE REJECTIONS, DEFECT REMEDIES, AND DISPUTES

7-Day Inspection & Quality Audit Window

Upon the Operator uploading final deliverables (GeoTIFFs, point clouds, inspection matrices, or media files) to the Platform, the Client has seven (7) calendar days (the "Review Period") to inspect the data against the agreed project specifications.

6.1 Grounds for Valid Technical Rejection

A Client may only reject deliverables and halt escrow release on documented technical discrepancies:

• Ground Sampling Distance (GSD): Spatial resolution measurably fails the contractually agreed GSD benchmark (e.g., contracted at $\le 2\text{ cm/pixel}$, delivered at $6\text{ cm/pixel}$).
• Spatial Gaps & Blanks: Missing coverage polygons, unstitched orthomosaic artifacts, or data voids exceeding industry tolerance.
• Corrupt Data: Unusable file formats, corrupted LiDAR point clouds, or missing radiometric EXIF/thermal metadata specified in the brief.

6.2 Obligation to Rectify (Cure Period)

Upon receiving a specific, technical defect report from the Client, the Operator must be granted five (5) business days to re-process raw files, re-stitch models, or execute a targeted re-flight at no additional cost to the Client.

6.3 Final Refund Adjudication

If the Operator fails or refuses to cure the defects after the rectification window, DronePilot Technical Adjudication will inspect the raw survey logs and flight data:

• Operator Breach: If the deliverable is objectively defective and non-compliant with standard engineering practices, the Client receives a full refund of the deliverable milestone, and the Operator forfeits payment.
• Unjustified Client Rejection: If the deliverable objectively meets the contracted RFP specifications and the Client refuses sign-off due to subjective preference or external scope creep, DronePilot will administratively release the escrowed funds to the Operator.

7. REFUND DISBURSEMENT MECHANICS & TIMELINES

• Payout Method: All approved refunds are remitted strictly back to the original source of funds (the bank account utilized during the FPX transfer). Under Section 16 of the AMLA, under no circumstances will refunds be diverted to third-party bank accounts or anonymous payment channels.
• Processing Lead Time: Once administratively approved, refund payments are initiated within three (3) to five (5) Malaysian banking business days. Settlement speed depends on Malaysian clearing networks (PayNet / FPX).
• Currency: All escrow transactions, deductions, and refunds are calculated and executed strictly in Ringgit Malaysia (MYR). DronePilot bears no responsibility for foreign exchange fluctuations or international banking conversion surcharges.

8. FORMAL REFUND & DISPUTE SUBMISSION

To formally initiate a cancellation, weather stand-down claim, or deliverable defect notice, submit an electronic request via your project dashboard or email our escrow desk:

• Department: Escrow Operations & Dispute Desk
• Entity: DronePilot Malaysia
• Electronic Notice: `support@dronepilot.my`
• Required Subject Line Format: `"[DISPUTE / CANCELLATION] Project Reference #[Job ID] - [Client/Operator Name]"`
• Mandatory Attachments: Flight area coordinate file (KML/GeoJSON), CAAM permit communication records, or technical QA/QC error logs.