In 1999, the trend of safeguarding assurance cover for a movie has become a rule in the film industry and this protection has been always-growing.Rajinikanth and Akshay Kumar movie Robot 2 is set to become the uppermost insured Indian film in history.
Lyca Productions has taken a protection of Rs 350 crore for production expenses alone, with plans to contribute for further cover for circulation of the Tamil film and is already advertised as the most expensive movie with a budget of Rs 400 crore. Its innovative feel has lead high production budgets and so the creators are on working to take precautions, with an association of public and private general guarantors providing the cover amount.
Lyca Productions has taken a protection of Rs 350 crore for production expenses alone, with plans to contribute for further cover for circulation of the Tamil film and is already advertised as the most expensive movie with a budget of Rs 400 crore. Its innovative feel has lead high production budgets and so the creators are on working to take precautions, with an association of public and private general guarantors providing the cover amount.
What do the policies cover?
The policies for movies cover diverse ranges such as production, publicity, and circulation. Guarantors also provide reimbursement for any accidents during the creation and post-creation stages.If it is a sci-fi or historical movie, large production houses take higher cover because of the expensive sets.
The policy covers loss of life or property on the sets. If a hi-fi superstars are involved, then the production costs are even higher since the movie fortune depends on the main artist. The policy also covers authorized and post-release issues such as movie setups shutting down owed to uprisings or raids. Even trial overseas is covered.
- Events where the losses cannot be calculated including the failure of a film at the box office.
- The film insurance segment was dominated by public general insurers.
- Public general insurers and private insurers, companies offer such movies.
- The premium is usually 0.5 percent of the size of the cover.
- Bollywood production houses, regional films are also increasingly taking insurance policies
| Salian, whose company is a big player in the film insurance market in India. |
| The growth of 30-40 percent on a year-on-year basis. |
| 200 Bollywood films and 1,000-plus regional films are releasing every year. |
| Claims from production houses are also increasing. |
Robot 2 creators have taken separate covers for a delay in the release because of objection to its content are also being taken. The company said that new policies such as covering a production house for long term contracts with actors are also in the works. Such a policy would cover the production house for losses against the actor’s death or injury.
With many films leaked online before being released in theatres, film producers are also seeking cover against piracy. However, industry players said that it will take time for such products to come into the Indian market since it is difficult to estimate costs from losses owing to piracy.
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