Film Industry running for Insurance Cover

The first movie to be insured in India was Taal. The music of this movie was insured by United Insurance in 1998. Since then United Insurance has insured more than 22 movies (22 by 2002). This is a new market for the insurers. Again the movies being insured are the top banner movies like from Yahs Raj Films, Priyadarshan Films etc. So the risk is low and the movies are of higher budget. Currently around 10 percent of the movies are insured. The reason behind it is that the financers are insisting on the insurance to cover their risk. Again incidents like fire on stage are another reason for the producers to go for insurance. The insurance companies are not restricting them only to Hindi movies. Now they are approached by the other movie industry like Tamil industry. There is a huge potential in this market for the insurers. Again the benefit for them is that the time period of the insurance is short. With the increase in popularity of TV serials another market can be created for the insurers.
Source: Economic Times