Mumbai, Mar 31 () : The film industry is increasingly opting for film insurance. The insurance industry business is only 2 % of the total volume and is expected to reach 10% in five years time if the present trend continues. The corporates mostly from Mumbai into film production are making it mandatory to get insurance and this is implemented in their South productions.
It was in the early 1990s with ‘Taal’, directed by Subash Ghai starring Anil Kapoor, Aishwarya Rai and Akshay Khanna was one of the first movies to be insured. This trend was followed by big banners being insured with general insurers. With the film budget going up, the risk factor too shot up and broking firms says that 50% of the film insurance business has within the last one year increased. The risk covers accidents and death on the location, legal problems and after release issues like theatres not able to screen the film due to natural calamities or riots.
Earlier, it was public insurance companies – National Insurance Company and New India Assurance that were offering film insurance cover but now Tata AIG General Insurance, Future General India Insurance and IFFCO-Tokio General Insurance are the private players. The insurance now covers loss due to injury of actors and also to the crew if work is halted due to food poisoning or similar accidents happen on the sets.
If the producer or distributor gives a revenue breakup for each region and if any natural calamity, riots or strike happens and collections fall, insurers will compensate. For all these the insurance charges 2% as premium of the total film budget. The entire production detail including actors’ fees and schedule are to be given in advance. The films being shot overseas, the film insurance business is looking up.
Regional films total 1000 a year and Bollywood produces 300 films. Mani Ratnam and Kamal Haasan are among those who opt for insurance.