That sector of the industry is growing in the South Asian country.
Recent reports are showing that the movie industry in India is purchasing film insurance coverage for its movies on an increasing basis, which is proving to be very promising for the sector.
At the moment, the sector has reached only 2 percent of its estimated total volume.
Though only 2 percent of movie makers are purchasing film insurance now, the trend is growing at such a rate that it is believed that it will increase to 10 percent within the next five years. The large producers and companies in the movie production industry are beginning to make it mandatory for their products to be covered.
Among the very first movies to be covered by film insurance in India was “Taal”, in the early 90s.
That movie started an important film insurance trend that would lead other large productions to seek out coverage with general insurers. The concept was that as movie budgets rose, the risk to producers also began to increase. Some estimates from broking firms are saying that within the last 12 months, the movie coverage industry has increased by 50 percent.
The film insurance coverage is for a number of different types of risk, including accidents or deaths that occur on set, liability, and issues that can arise after the release of the movie, such as the inability of cinemas to screen the finished product as a result of natural disaster or rioting.
Previously, film insurance had been available only through public firms – such as New India Assurance and National Insurance Company – that offered the coverage. However, there have been a number of new private entrants into the sector, including Future General India Insurance, Tata AIG General Insurance, and IFFCO-Tokio General Insurance.
The more recently developed film insurance products now also include losses resulting from halted filming due to injured actors, food poisoning, and similar incidents that can occur on set. The policyholder – often the distributor or producer – can also provide the insurer with a breakdown of the projected revenues for each region in which the movie is to be screened in order to be able to be compensated in the case of natural disaster or riots in those areas.
