Since the very beginning of the introduction of talkies into Bollywood during 1931, the entire film industry has seen many ups and downs. If we take a proper look at the history of Bollywood, initially filmmaking was not really that much costly or risky in comparison to today’s time. Due to the advancement of modern technology and the introduction of Hollywood, making a film these days includes enormous hard work, a huge amount of money, sets and other factors. In order to safeguard this, film insurance was introduced to the film industry. This article focuses on the scenario of Film production Insurance in India and some other basic information related to the Film insurance scenario in India.
Earlier insurance was not really considered to be a necessary element. As the matter of fact, it used to be seen as more a burden to the entire budget of the film. Famous film director Subhas Ghai was the first to initiate the process. The incident that prompted Subhas Ghai was the arrest of actor Sanjay Dutt during his film ‘Khalnayak’. In 1998, Ghai insured his movie ‘Taal’ with UII by paying Rs. 1.5 million as premium. That was the beginning when Film Producers and Film Directors started to think how to get insurance, and that prompted more and more directors to insuring their films.
Later, UII (United India Insurance) marked the incident by honouring Ghai with ultimately naming the policy, ‘The Cine Mukta Policy’ (Translation: Freeing Film Industry from Losses) in relation with his company Mukta Arts Pvt. Ltd.
Some of the other insured Indian films are ‘Mohabbatein’, ‘Lagaan’, ‘Dil Chahta Hai’, ‘Ashoka’ and so on. Till present days, UII has insured more than 40 films almost and is planning to increase the number.
What Are The Things Included Under The Insurance:
Which things are to be included under the insurance policy depend on the type of policy taken by one individual. These things can be divided into some broad categories which are the following:
- The main cast, supporting cast, Directors, main technicians
- Stage props, sets, necessary equipment, negatives used in short film, feature film
- Public or General Liability
- Money insurance
- Insurance for Workmen
- Insurance for accidents
.Bank Offer Related to Insurance:
Another very important motivation towards insurance is that the status of Film production came to be termed as ‘industry’ in 2000. RBI also allows the banks to conduct the lending process. Therefore, the insurance is being seen as a sort of bank loan for the Hindi films, hence the importance of insurance for whoever wants to take a loan from the bank for the film.
Names of Banks Offering Film Finance in India
- United India Insurance Company LTD (https://uiic.co.in/search/node/FILM)
- IDBI Bank FILM finance (http://www.idbi.com/index.asp)
- Third Eye Cinema Fund (TECF) (http://www.thirdeyecf.com/)
- The Export-Import Bank of India (http://www.eximbankindia.in/#)
- Yes Bank (https://www.yesbank.in/)
Premiums or Insurance amount of films, supposed to be insured have dropped immensely, almost from 6% to 1%, with the passing of days which enables more producers willing enough to insure their films. The net amount of the cover, however, depends on the budget of the entire film. During the time for applying film production insurance, the banks ask to submit proof for budget, the amount paid to the actors, schedule, location of the shooting, film distributor name (mandatory) and release date.
Initially, companies like New India Assurance or National Insurance Company were the dominant ones in the market. These days private companies like Tata AIG, IFFCO Tokio General Insurance also participate in the business of insurance and the coverage has also increased as mentioned earlier.
Explanation of The Legal Terms:
Here is a brief explanation of the above mentioned legal terms.
- Production Cast Insurance:
This insurance covers the loss of unnecessary expenses related to Movie which may occur due to death, any other injury or sickness. The validation period is up to one accident and any one of the years as mentioned in the declaration.
- Cast Insurance:
This insurance covers the expenses due to sudden death, injury, kidnap of person who is supposed to be insured, illness or death of the immediate family member of the insured person.
- Negative Tapes of Film & Video Tape:
The insurance covers mostly all the risks of physical loss or damage to the negative tapes. The covered things included are tapes, exposed films, working prints etc.
- Stage Props, Wardrobes:
Like the tapes, this insurance also covers physical loss of any of the stage props, costumes, and wardrobes, set.
- Damage to the Third Party Property:
This insurance provides coverage for the legal liability which may arise due to injury, destruction of others’ property etc.
As it’s obvious, this insurance covers any loss of money. This loss includes any theft or threatening attempt to loot a room containing filled safe.
- Coverage of General Liability:
This area provides coverage against any legal liability which can arise from any third party in form of physical injury or damage to property
This is a brief description of the Film Insurance scenario in India. As mentioned earlier, more and more film directors and producers are becoming interested in insure their films. You can take a look and plan about the insurance for your film according to your conveniences.
Click Here to read the Info regarding “Changing modes of Film financing in India.”
Reference Article By Legal Service India on – How to get Insurance For Feature Films, Ad Films and Documentaries http://www.legalservicesindia.com/articles/film.htm