The Hindu Business Line : Film industry running for insurance cover

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The cover includes insurance of the cast, props, film negatives and additional expenses arising out of disruption in production schedules.
The premium is around 1-1.5 per cent of the film's budget and can work out from Rs 8 lakh to Rs 25 lakh.

Mumbai , Oct. 14

Film producers are increasingly reaching out for insurance to protect themselves from losses arising out of accidents at the sets, and starry tantrums. In the past year, regional and documentary makers have also been seeking insurance.

United India Insurance, which pioneered film insurance in 1998, has so far insured 130 films. The tally in 2002 stood at 22.

Mr Ajit G. Gupta, development officer who sources film insurance proposals for the company, said big producers are now becoming aware of the role of insurance in risk mitigation.

The films that have been insured over the past one year include Kabhi Alvida Na Kehna, Rang De Basanti, Fanaa, Corporate, Don, Dhoom 2, Salaam-e-Ishq, Kabul Express, Dor, Golmaal, Naksha, Neil and Nikki and 36 China Town.

Currently, around 10 per cent of the over 200 Hindi films released every year is being insured. The cover includes insurance of the cast, props, film negatives and additional expenses arising out of disruption in production schedules. The premium is around 1-1.5 per cent of the film's budget and can work out from Rs 8 lakh to Rs 25 lakh. "Banks and financial institutions that are providing funds for films are now insisting on insurance. Besides, recent incidents of fire on the sets have also increased awareness among film producers about insurance," said Mr Krishnamoorthi Rao, Head-Underwriting, Bajaj Allianz General Insurance.

Besides Hindi films, Bajaj Allianz General was approached by Tamil film producers and TV production houses such as Raadan. The company also insured a Bengali documentary film.

Bajaj Allianz General Insurance has seen a 50 per cent increase in premium and hopes to see a 20-30 per cent growth in the next few years.

With accidents occurring on the sets of serials, TV production houses are also running for cover. The risk in this case is calculated on a per day basis depending on the number of schedules running simultaneously.

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