FILM INSURANCE IS A HIT AGAIN

Film insurance seems to be gradually returning to Bollywood, after a lull. This weekend’s two big releases, Harry Baweja’s Love Story 2050, co-produced by Adlabs, and Aamir Khan’s latest production Jaane Tu..Ya Jaane Na with PVR, have both had insurers.

While state owned non-life insurer United India Insurance has insured Baweja’s film, Khan’s film has been insured by private insurer Bajaj Allianz General Insurance.

Without disclosing the premium for Jaane Tu.., an Bajaj Allianz official told FE on condition of anonymity that, among other things, shooting equipment and the film sets had been insured for the film. However, the insurers are not concerned with the performance of the film at the box office.

The trend of film insurance begun in the late nineties with Subhash Ghai’s Taal and continued with Sanjay Leela Bhansali’s Black.

But despite the initial hype, film insurance has still to gather momentum in the Hindi film industry, despite insurers seeking to make inroads. Broadly, only one out of every 10 films being produced opts for insurance.

Sources say the main obstacle lies in the nature of insuring a particular film. While writing a film insurance policy, the insurers usually cover things like reimbursement of expenses incurred by the producer due to the death of principal stars, loss or damage to sets, wardrobes, costumes machinery, equipment owned and destroyed due to fire and other perils, as well as theft.

Meanwhile, both the films Love Story 2050 and Jane Tu.. which were released on Friday, are being keenly watched by the film trade and exhibition circles.

source: The Financial Express