Bollywood filmmakers go for insurance

Insurance is the latest buzzword in Bollywood. The largest film industry in the world is embracing corporatisation and following an organised business model. For starters, film insurance is fast becoming a popular concept with increasing numbers of producers seeking insurance for their films.

Last year only action films like Lakshya, Deewar and Dhoom were insured, this year films opting for insurance include Swades, The Rising, Kisna, Bunty aur Babli and Kaal.

Says filmmaker Karan Johar, "It's the need of the hour. With the amount of risk and money involved in filmmaking, it has become an important aspect today. Though Hollywood filmmakers have been insuring their films for a long time now, it is critical that Bollywood also follows their footsteps."

Especially with a number of stars like Amitabh Bachchan, John Abraham and Abhishek Bachchan out of action, film insurance has acquired paramount importance. "With our erratic working schedules, there are more chances of things going wrong. So, it's a good shot in the arm for producers," says producer-director Sanjay Gupta.

Filmmaker Subhash Ghai believes, "Corporatisation of the film industry is a healthy sign. Out of every three films, one is insured." Not many know that Ghai's Taal was the first Hindi film to get insured.

Some believe that insuring a film "raises its budget" making producers sceptical about it. Says producer Sajid Nadiadwala, "The budget increases because premium rates are high due to the risk factor. Unfortunately, people are unaware of its advantages." Adds Gupta, "It's a small price to pay to sleep peacefully."

According to experts, producers still believe in making films the traditional way. Insuring films is an utopian concept for many in Bollywood. "They feel that they would be wasting their money if things don't go wrong on the sets," says Taran Adarsh, editor, Trade Guide adding that insurance is the future. "Whether we like it or not, with foreign companies making an entry, it is bound to be a success," affirms Adarsh.

Film insurance is a customised offering where the premium rate and extent of risk cover varies. United India Insurance, a leading insurance company ventured into this sector. Till date, the company has insured over 75 films. It includes Yuva, Khakee, Munnabhai MBBS, Main Hoon Naa, Koi Mil Gaya, Kisna, The Rising, Lakshya, Mumbai Central, Shaheed Bhagat Singh and forthcoming Amitabh Bachchan starrer Babul.

"We came up with the concept of film insurance after we received requests from producers to devise a cover for film production," says a company official. Recently, the company also insured a Bhojpuri and a Bengali film.