My Director is ready with his script. I like the script but I am worried
because of the high budget and what if anything goes wrong during
production?
|
| Not to worry. You have Film
Production Insurance to cover you as a Producer from any eventualities
so that you need not worry about the risks associated with the
production. |
What risks are covered in Film Production Insurance?
|
| Film Production Insurance
covers risks under various categories viz., Cast / Key Members,
Equipments, Props, Sets & Wardrobe, Raw Stock / Tapes / Negatives /
Faulty Stocks, Extra Expenses, Third Party Property Damage, Public
Liability, Personal Accident and Money Insurance. |
My lead cast is injured. My shooting has come to a standstill. Unless I
replace my lead cast, I cannot proceed further and whatever I have
incurred so far will be lost. How can Insurance protect me from this
event?
|
| This risk is covered under the
head 'Cast / Key Members'. Insurance will pay you for the extra fees and
remuneration which results solely and directly from death, accidental
injury, illness / sickness and kidnapping. |
Last night, the camera got damaged while the equipments were being
shifted from the Shooting Spot to the Hotel. The Camera belongs to the
outdoor unit supplier and I might be called upon to pay a huge amount
towards replacement / restoration / repairs. How can Insurance protect
me from this liability?
|
| Not to worry. Physical loss or
Physical damage to equipment, whether owned or hired and whether in
transit, storage or operation and if used for the insured production is
fully covered. |
I had erected a set in the outskirts of Hyderabad. But due to floods,
the entire set has been washed away. I estimate the loss at Rs. 2 crores.
How can Insurance protect me from this liability?
|
|
Indeed yes. Insurance fully pays for the Physical loss or Physical
damage to props, sets and wardrobe which are either owned or hired or
stored in your custody and if used for the insured production. |
The vehicle carrying the Negatives used during shoot met with an
accident and in the process, the negatives have been damaged
necessitating re-shoot of the shot portions and I reckon this damage to
be at least Rs. 1 Crore. Can Insurance cover me from this loss?
|
| Yes. You will be fully covered
for such types of losses even if the negatives are transported as
baggage as long as they were used in the production of the Insured Film. |
My Hero has reported sick and is not able to make it to the shooting
spot. I have no alternative but to cancel the shoot. But I will suffer
huge losses because of this cancellation. Can Insurance cover such
eventualities?
|
| Vey much. Insurance will pay
for extra expenses / additional expenses / consequential if the project
/ production / post production is reasonably and necessarily
interrupted, cancelled, postponed out of illness, sickness and accidents
of cast & key members. |
My lead cast & the key crew members are unable to reach the shooting
spot because of Pilots' Strike. I have made arrangements for the
shooting and if they do not arrive on time, I will incur huge losses.
Will I be covered by Insurance?
|
| Indeed Yes. Insurance will pay
for losses arising out of such eventualities and various other
eventualities like Earth quakes, Road Blockages, Riots, Adverse weather
etc. |
The house in which we shot the fight sequence yesterday was damaged and
the landlord demands Rs. 5 lacs as restoration charges. Can Insurance
cover me from such eventualities?
|
| Yes. You will be covered for
this eventuality. |
During last nights' car chase
shoot, 5 people who were watching the shoot were badly injured when one
of the cars caught fire. All of them are hospitalized and I might end up
with a claim of Rs. 1 lac / person. Can Insurance cover me from such
eventualities?
|
Yes. Very much. Insurance will
pay for the amount insured against any claim for the damages for which
you may become legally liable to pay for accidents occurring which
results in bodily injury or disease or loss of or damage to property in
connection with the insured production.
On top of this, Insurance also pays for accidental death / injury /
permanent total disability / permanent partial disability for persons
named in the policy and while actually working for the insured
production. |
My Production Manager lost Rs.
2 lacs yesterday while returning from the bank to the shooting spot.
Will Insurance cover this?
|
| Yes. You will be covered under
the head 'Money Insurance'. |
How much will be the premium
payable? Can the premium be paid in installments?
|
| Premium amount ranges between
0.5% to 0.7% of the budgeted cost of the film. Premium has to be paid in
one go and coverage will start only on payment of the full premium.
Premium cannot be paid in installments. |
One of the theatres where the
film was screened was forced to close down due to one of the perils
covered by the DLOP Policy. The houseful collections of the said
affected theatre in full capacity for any full day of 4 shows amounts to
Rs. 1.40 lacs. For the same affected day, a comparable theatre in the
same city had achieved 80% occupancy. What will be the amount of claim
under DLOP Policy?
|
Since it is a total loss on
the affected theatre, the performance of the affected theatre is
compared with the performance of a comparable theatre (whether in the
same city / territory / different city / different territory) and the
performance of the compared theatre is the basis foe settling your
claim.
In the present case, since the compared theatre has achieved 80%
occupancy on the affected day, you will be paid 80% of the full
occupancy of the affected theatre. In other words, you will be paid 80%
of Rs. 1.40 lacs. |
The locality where one of the
theatres where the film was screened was affected by one of the perils
covered by the DLOP Policy. The theatre could achieve only 37.5%
occupancy, while a comparable theatre in a different locality in the
same city that was not affected by any such peril had achieved an
occupancy of 80%. What will be the amount of claim under the DLOP
Policy?
|
This is a case of Partial
loss. The Claim amount will be the difference of the % occupancy
achieved in the comparable theatre to the % occupancy achieved in the
affected theatre as long as the variation is more than 20% and would be
restricted to 90% of the loss of revenues.
In the present case, the comparable theatre has achieved 80% occupancy
and the loss of revenue is 42.5% of the occupancy of the affected
theatre i.e., 80% minus 37.5%.
Claim under DLOP Policy will therefore be equivalent to 90% of the loss
of revenue i.e., 38.25% occupancy of the affected theatre i.e., 90% of
the 42.5% occupancy of the affected theatre. |
The locality where one of the
theatres where the film was screened was affected by one of the perils
covered by the DLOP Policy. The theatre could achieve only 62.5%
occupancy, while a comparable theatre in a different locality in the
same city that was not affected by any such peril had achieved an
occupancy of 80%. What will be the amount of claim under the DLOP
Policy?
|
| This is a case of Partial
loss. The Claim amount will be the difference of the % occupancy
achieved in the comparable theatre to the % occupancy achieved in the
affected theatre as long as the variation is more than 20%.
In the present case, the comparable theatre has achieved 80%
occupancy (17.5% more than the occupancy of the affected theatre.
Since the variation is only 17.5% i.e., 80% minus 62.5% and is less
than 20%, there would be no claim eligible under DLOP Policy. |
One of the theatres where the film was screened was forced to close
down due to one of the perils covered by the DLOP Policy. The houseful
collections of the said affected theatre in full capacity for any full
day of 4 shows amounts to Rs. 1.40 lacs. For the same affected day, a
comparable theatre in the same city had achieved 80% occupancy. What
will be the amount of claim under DLOP Policy?
|
| Since it is a total loss on
the affected theatre, the performance of the affected theatre is
compared with the performance of a comparable theatre (whether in the
same city / territory / different city / different territory) and the
performance of the compared theatre is the basis foe settling your
claim.
In the present case, since the compared theatre has achieved 80%
occupancy on the affected day, you will be paid 80% of the full
occupancy of the affected theatre. In other words, you will be paid 80%
of Rs. 1.40 lacs |
The locality where one of the theatres where the film was screened
was affected by one of the perils covered by the DLOP Policy. The
theatre could achieve only 37.5% occupancy, while a comparable theatre
in a different locality in the same city that was not affected by any
such peril had achieved an occupancy of 80%. What will be the amount of
claim under the DLOP Policy?
|
| This is a case of Partial
loss. The Claim amount will be the difference of the % occupancy
achieved in the comparable theatre to the % occupancy achieved in the
affected theatre as long as the variation is more than 20% and would be
restricted to 90% of the loss of revenues.
In the present case, the comparable theatre has achieved 80%
occupancy and the loss of revenue is 42.5% of the occupancy of the
affected theatre i.e., 80% minus 37.5%.
Claim under DLOP Policy will therefore be equivalent to 90% of the
loss of revenue i.e., 38.25% occupancy of the affected theatre i.e., 90%
of the 42.5% occupancy of the affected theatre. |
The locality where one of the theatres where the film was screened
was affected by one of the perils covered by the DLOP Policy. The
theatre could achieve only 62.5% occupancy, while a comparable theatre
in a different locality in the same city that was not affected by any
such peril had achieved an occupancy of 80%. What will be the amount of
claim under the DLOP Policy?
|
| This is a case of Partial
loss. The Claim amount will be the difference of the % occupancy
achieved in the comparable theatre to the % occupancy achieved in the
affected theatre as long as the variation is more than 20%.
In the present case, the comparable theatre has achieved 80%
occupancy (17.5% more than the occupancy of the affected theatre.
Since the variation is only 17.5% i.e., 80% minus 62.5% and is less
than 20%, there would be no claim eligible under DLOP Policy. |
I am the distributor of a film for Madurai-Ramnad (MR) area. The
prints were dispatched from the lab in Chennai at about 5 PM on the
previous day of the release. At about 5 AM, while in transit, the
vehicle carrying the prints to the theatres in MR area met with an
accident before Dindigul and hence the prints could not reach any of the
30 theatres on time. All the theatres missed 3 shows and 2 shows at 7 PM
and 9 PM were possible in all the theatres. Will I be covered under the
DLOP policy?
|
| Yes. Loss of revenue due to
non-arrival or delayed arrival of prints on account of any insured peril
is fully covered by the DLOP. Accident is an insured peril under DLOP
and you can claim the full loss of revenue on account of the
non-screening of the film for 3 shows in all the 30 screens in the MR
area.
|
I am the distributor of a film for Madurai-Ramnad (MR) area. The
prints were dispatched from the lab in Chennai at about 5 PM on the
previous day of the release. At about 7AM, while in transit, the vehicle
after delivering 20 prints in Madurai left for Virudhunagar & Sivakasi
to deliver the remaining 10 prints. The vehicle met with an accident
between Madurai & Virudhunagar and hence the 10 prints could not reach
the theatres in both these cities until the evening. All these theatres
missed 4 shows and only one show and 9 PM was possible in all these
theatres. Will I be covered under the DLOP policy?
|
| Yes. Loss of revenue due to
non-arrival or delayed arrival of prints on account of any insured peril
is fully covered by the DLOP. Accident is an insured peril under DLOP
and you can claim the full loss of revenue on account of the
non-screening of the film for 4 shows in the affected 10 screens in the
MR area.
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