Increasing awareness about film insurance

The concept of film insurance is fast catching on in Kollywood. The number of producers insuring their films against risks is on the rise, of late. The films that have been insured in recent times are Viswaroopam, Kadal, Paradesi, Kochadaiyaan, Irandaam Ulagam, Naan E, Mugamoodi and Nedunchalai.

Insurance against risks covers not only artistes, technicians and others, but also damage to properties, sets, equipment and negatives. Shooting disruptions due to inclement weather, law and order problem and the absence of a unit worker when any of his family members is hospitalized, and terrorist threats are also covered by insurance. There is distribution insurance as well. If BO collections fall short of estimates due to natural calamities and agitations, those insured can claim the losses.

A set of ‘Raavan’ was washed away in floods with the producers incurring a loss of Rs. 30 lakh. The insurance cover was of help to this film. ‘Rajapattai’ also received insurance money for some losses. A producer has received Rs.1.5 lakh towards the medical expenses of a unit member who was injured and hospitalized.

There are agents who specialize in film insurance and they are well versed with all the complexities of the procedure. According to them, the insurance amount will range from 0.3 to one per cent of the film’s budget. Premium rates are higher for small budget films than those for big budget films because small producers run greater risks.

Corporates who are into film production, young producers and second-generation producers are open to the concept. Old producers are the ones who are reticent and they are the hard nut to crack: they believe in themselves rather than in insurance, a field officer says.