While it is true that there is no business like show business, it is also one of the riskiest. A t can go wrong when making a film and the producer is forced to bear losses out of his own pocket. But, not anymore, as many producers in the Tamil film industry are realizing that they can cut risks by insuring their films.
Says a producer, “Recently, one of our crew members was injured and had to be hospitalized. But, because we had insured the film, we  claimed medical insurance and got Rs 1.5 lakh which went towards the medical expense.” The insurance coverage extends to not just  the cast and crew, but also to properties, sets, equipments and negatives.
In addition to this, shooting disruptions due to adverse weather conditions, a unit hand’s absence due to hospitalization of his family  member, civil unrest and even terrorist threats, can be covered for insurance. There is even distribution insurance, where a producer has  to give out the collection estimates from each territory to the insurance company and can claim a loss incurred due to natural calamities  or civil unrest.
“Film insurance is an intricate one with various clauses and so, a producer might not know how to avail the maximum benefit and this is where we come in,” says Abhishek Bharati, an insurance broker who specializes in film insurance. Films like Rajapattai and Raavan (which lost Rs 30 lakh after a set was washed away due to flood) were able to claim their losses due to insurance he says. The insurance amount will be anywhere between 0.3 to 1 per cent of the budget, with premium rates higher for small budget films compared to big budget ones.
However, insurance experts feel that while corporates, young producers and second generation producers are open to such concepts, old school producers are still hesitant. The reason, hey say, is that either their awareness is low or they feel they know the trade or place their belief in destiny and not open to such new options. “When we approached one major player, who currently has three projects on floor, he just told us, ‘I believe in God and if anything happens, so be it’,” reveals Abhishek.
Insured films
- Viswaroopam
- Kadal
- Paradesi
- Kochadaiyaan
- Irandaam Ulagam
- Naan Ee
- Mugamoodi
- Nedunchalai
