Robot 2's Rs 330 cr insurance cover sets record

Last Updated: Mar 21, 2016 | 511 Views
Cyberspace hyper-hero and real life actor Rajnikanth’s upcoming movie Robot 2 will be released next year but it has already set a record for the highest insurance cover for an Indian movie at Rs. 330 crore. Enthiran 2 or Robot 2 is also the most expensive Indian movies ever made. 

New India Assurance, Oriental Insurance and United India are the underwriters for the Rajnikanth, Akshay Kumar & Amy Jakcson starrer sci-fi action thriller. According to reports, the total insurance cover will double once the movie goes to cinema halls to cover distribution-related risks; distribution cover is equal to that of production.   

A film insurance would usually cover following: 
  1. Pre-production cast insurance covers expenses incurred due to death, injury, sickness or kidnap of any designated person. 
  2. Negative film & video tape covers risk of physical damage or loss to property (including raw fil, videotape matrices, working prints, cutting copies etc) from an external cause
  3. Props, sets and wardrobes 
  4. Third Pary Property Damage 
The trend to get movie projects insured has caught up with Indian production houses especially big ones who want to be insulated from any shocks that come from delayed projects, talent-related issues and marketing problems. 

The premium for such poilicie is usually 1-2 percent of the total movie budget, so the insurance premium for Robot 2 might be in the range of 3-6 crore. While applying for insurance, the production house or the producer has to share the details such as actor costs, film’s budget, schedule, shooting locations etc. Failure at the box office or sudden imprisonment of the talent is not covered.  

Private insurers offer insurance covers but have very stringent specifications with respect to different aspects of pre-production and production which might hamper the creative scope of the movie and therefore public-run insurance companies are more popular among producers.  ‘Taal’ was among the first movies to be insured and ‘Mohabbatein’ was among the first one to claim insurance.