EVENT CANCELLATION INSURANCE POLICIES

OVERVIEW OF EVENT CANCELLATION POLICY:

Event cancellation insurance may help cover expenses if one’s special occasion — such as a wedding or an anniversary party — unexpectedly needs to be canceled or postponed due to certain circumstances beyond insured’s control, such as adverse weather or unavoidable compulsion or state order or a death or absentees. Insured may also be covered for lost costs if insured’s officiant or a major vendor, like the caterer or florist, contracted for the function, fails to provide promised services. It is important to note that the Insured are not likely to find an event cancellation insurance policy that will provide coverage if a bride or groom voluntarily calls off a wedding.

With a specific event cancellation policy, any one may typically choose a maximum amount of overall coverage (also known as the “limit” of the insurance cover or the highest amount the insurer will reimburse the insured in case of a claim is made under the affected policy) depending on the total cost of the selected event. Insured may be required to pay a deductible (also known as ‘Excess’) from his/her pocket before the policy helps reimburse him/her for a covered loss. Initiation of availing the Event Cancellation Policy was taken mainly in Mumbai, slowly various policies are issued in Chennai, Delhi and many other places. Now-a-days issuance of these event cancellation policies by the Indian General Insurance Companies are thriving in many ways in Mumbai, the Business Capital of India.

Insurance companies in India are covering major events like international cricket against the uncertainties of terror attacks and the vagaries of weather. Event cancellation insurance policy helps protect interest of organizers, broadcasters and sponsors of various event/ functions.  Huge money pours into cricket from our sub-continent than from anywhere else in the world. This has built an unfortunate perception that all countries in the regions are hot spots for international events. A belief that has proved to be a great loss for fans and for the sport itself. Besides cricket matches, other high value insurance events are movies and television serials. A start was made when United India Insurance issued the first package policy for the feature film Taal in 2000. It was a comprehensive policy, extending cover to the film, performers, as well as producer Shri Subhas Ghai. Since then, the entry of corporatization of production houses has given a boost to film insurance to these high value insurance events like movies & television serials. Subsequently Bajaj Allianz had provided insurance cover for Vijay Mallya’s film Rakht and the Oscar nominated short film — Little Terrorist during 2003 onwards.

Apart from movies and cricket, it’s the television serial producers too line up for insurance covers. One of the biggest policies issued is that by Bajaj Allianz General Insurance for 200 episodes of Star One’s serial ‘Nach Baliye’. The important event insurance cover opted is this star One’s ‘Nach Baliye’ – a dance competition among mini-celebrities. The interesting part of the cover is that it provides to meet the cost of bringing in a new contest couple if any of the celebrity contestants are unable to make it, for reasons specified in the policy. This particular policy also included a Rs. 2.5 Crore Personal Accident cover for the stars in case any accident occurs during shooting of the serial. Besides, there is a Rs. 3.5 Crore Personal Accident cover for all the key crew members and workers.

In the show business the industry, largely uncovered, could be exposed to big risks. The stakes may be further high with products booking locations based on dates allotted by the superstars. Take for basic instances Kaun Banega Crorepati, hosted by Amitabh Bachchan or Shah Rukh Khan. Kaun Banega Crorepati was one of the early ones to buy an event cancellation insurance policy cover. Star TV had earlier obtained a Rs. 10 crore cover from Oriental Insurance Co. Ltd. for the first phase of the serial. The channel had insured the sets and injury to audience and participants. The policy, however, did not cover non-appearance of the celebrity, Mr. Amitabh Bachchan, who hosted the show.

EVENT CANCELLATION REQUIREMENT FOR AN INDIVIDUAL:

Event cancellation insurance can help reimburse the insured for the loss of non-refundable down payments for expenses like catering, flowers, photography, entertainment or honeymoon travel if your event is cancelled or postponed. Insured may also be protected if a paid vendor goes out of business before your event.

The insured need to read the proposal to fill-up that form and understand the fine prints of the policy covers, exclusions, conditions & the clauses or speak with insurer’s advisor /agents for the details specific to that policy being purchased. Here, other costs that may be reimbursed to you as the insured, in the Global Market include:

1. Event photographic expenses – This coverage may reimburse the insured for payments made to a professional photographer if he doesn’t show up for the job or loses or damages your images before giving you copies.
2. Special apparel -Say your wedding dress is burned while being professionally pressed. This coverage may help pay to replace/repair your specialty clothing.
3. Special gifts -If a gift intended for your event is lost or damaged, this coverage may pay you to repair or replace it. Monetary gifts may be covered up to a specific Rupees limit.
4. Special jewellery -This coverage may help protect your wedding rings, golden/silver crowns or other event-related jewellery – if it’s lost or damaged during the event. It may also offer protection for a specified period of time after the event.
5. Special exigencies -If you must postpone or cancel your event because of a military deployment/curfew/rebellion/ revolution, etc. — yours, or that of an immediate family member, active event participant or your officiant — event cancellation insurance may help reimburse you for all such lost fees.
6. Requisite counselling -If your event’s cancellation or rescheduling causes you enough distress that a medical doctor recommends counselling, this coverage may pay for those services.

Anyone’s ability to purchase event cancellation insurance may depend on a few factors, such as how many days away the event is scheduled to take place and the location where it will be held. Here are some aspects to be considered in insured’s mind:

1. Consider coverage when you received the policy in hand – It is suggested looking into event cancellation insurance as soon as you begin filling out event contracts. Keep in mind that some insurers won’t let you take out a policy more than 12 months before your event’s scheduled date or within the final 15 days leading up to the event.
2. Payment may be due up front – Your premium may be paid before the policy is issued (to comply with Section 64 VB of Insurance Act, 1938).
3. While holding your event at your home -You need to check with your Barat Griha Raksha Insurer (if already availed) to be sure whether you have adequate liability coverage in case of an accident or other mishap on your property arising on the Event Day. Even then you, as the insured, may be able to add special event liability coverage to increase your insurance protection during the event.

Details of Policy Coverage:

 The Events Insurance Policy Particulars –

The Events Insurance Portfolio includes cover for cancellation and abandonment, property damage and legal liability and offers you the flexibility to choose an insurance package to match the exact cover you require.

Cancellation – if your event is cancelled for reasons beyond your control, the insurer will reimburse your irrecoverable expenses, up to the limit you choose. This includes cancellation following terrorism for your event.

Property damage – the insurer will cover loss of or damage to your property (or property you are responsible for) either at or traveling to and from your event up to the limit selected by you. The cover also includes loss of or damage to the venue’s buildings, fixtures, fittings and machinery up to the stipulated limit selected by you. This property insurance section covers the property used in the event. The premium is usually dependent upon the value of the property to be covered. The levels of cover can vary depending on your event needs and you should discuss these with the event insurance broker.

Legal liabilities – the insurers provide cover if you have to pay compensation to a third party following accidental bodily injury or damage to their property if the incident happens during your event. The cover also includes legal defence and injuries from food poisoning caused by food or drink served as hospitality by you. It is basically a kind of liability cover as standard. You can also purchase additional cover for Employers’ liability for a suitable limit of your choice– your legal liability to your own and casual staff.

In addition to the standard covers above, you may also purchase additional cover for:

• Adverse weather for outdoor events (in the open or in a temporary structure);
  • Interruption cover for teleconferencing – available for picture, audio or data image communication links;
  • Non-appearance of key persons – if your event is dependent in whole or part on key speakers, celebrities or entertainers;
  • Travel insurance;
  • Money insurance;
  • Enforced reduced attendance;
  • Loss of net profit, etc.

Public Liability: This section covers your liability against claims from the public while attending your event. The premium is often dependent upon the number of people attending your event. The levels of cover can vary depending on your needs and you should discuss these with the event insurance companies or the brokers. This cover is usually a compulsory element of an event insurance policy. Basically, it covers your liability against claims from the public while attending specifically to your event. The premium is often dependent upon the number of people attending your event. The levels of cover can vary depending on your needs and you should discuss these with the event insurance broker. This cover is usually a compulsory element of an event insurance policy.

Property Insurance: It covers the property used in the event. The premium is usually dependent upon the value of the property to be covered. The levels of cover can vary depending on your event needs and you should discuss these with the event insurance companies or the broker.

Employers’ liability: It covers you as the organiser against any claims from any staff that you might employ for the event. The premium tends to be in relation to the number of staff which you employ for the event. The levels of employer’s liability cover may vary depending on their needs and the insured should discuss these aspects with the event insurers or the brokers.

Cancellation and Abandonment cover: It covers your event against cancellation or abandonment, postponement, failure to vacate, adverse weather, and rainfall affected and any other eventuality beyond the control of the organiser of the event. The extent of cover can vary depending on your needs and you should discuss these with the event insurers/brokers.