Distributors’ Loss of Profits
(DLOP) is a Special Insurance Cover to indemnify an Insured for their
loss of ticketing revenues up to 60 days from the release date of the
film due to the insured perils.
The Policy also covers revenue losses
to Distributors / Exhibitors for the initial 2 days from the release
date of the film due to delay / non delivery of release prints to the
theatre(s) directly attributable to - Personal Accident / accident to
the vehicle in which the release prints are being transported, Fire &
Allied perils, Adverse Weather & Rain including any type of physical
loss / damage to the release prints, Riots, Strikes Malicious Damage and
all risks including Theft & Burglary etc.,
APPLICABILITY
This Policy is meant to cover
a Distributor, a Producer (who directly releases the film in theatres)
and an Exhibitor in whose theatre(s) the film is released.
COVERAGE
1. Force Majeure and Riot,
Strike, Malicious Damage, Epidemics, National and State mourning.
2.
Loss of revenues accruing due to Denial of Access to the theatres
arising from: -
a) Strike, Bandh call, Ban call of the
particular movie given by a political or a non-political organization
b) Act of terrorism
including a bomb hoax, including the blockade of public, access roads
due to dispute, public demonstration, riots, strike and civil commotion
by third parties.
c) Act of God perils.
3. Interruption/ Postponement of the screening of the film due to
reasons beyond the insured's control.
4. Non-delivery of release prints to the theatre (s) directly
attributable to - Personal Accident / accident to the vehicle in which
the release prints are being transported, Fire & Allied perils, Adverse
Weather & Rain including any type of physical loss / damage to the
release prints, Riots, Strikes Malicious Damage and all risks including
Theft & Burglary.
EXCLUSIONS
1. Any losses arising directly
or indirectly from any debt, insolvency, commercial failure.
2.
Any Loss/Damage caused by or resulting from any act or incident which
occurs or is committed directly/ indirectly by reason of or in
connection with: war, invasion, act of foreign enemy, hostilities or war
like operations (whether war be declared or not) civil war, or seizure
of power arising from a military conspiracy.
3. Any loss arising from any failure of the insured reasonably comply
with the local and national laws and regulations.
4. Film banned by Government and / or by an Order of the Court.
5. Losses on account of Piracy.
CLAIMS
Claims will be processed based on loss of earning to the affected
theater/ territory calculated by taking into account the % occupancy of
a comparable theater/ territory during the particular day or period
during which revenue collection is affected due to the insured peril and
in event of the loss of revenue.
PREMIUM
An amount up to 1% of the sum
insured. Sum Insured is the break up of expected revenue that will have
to be declared by the insured. Premium shall be paid in full before
release of the film.
DURATION & TENURE
The Policy should be taken
before release of the film and will commence from the date of release
and shall remain in force for a period of 60 days from commencement.
OVERSEAS RELEASES
Yes. The Policy covers
Overseas territories where the film is released.
DELAY IN RELEASE
The policy has extension cover
for publicity/ marketing cost. Costs incurred one week prior to the
release viz., marketing/ publicity expenses can be covered. Delays in
release due to any kind of business disputes are not covered.
