Disruptions in Sanjay Leela Bhansali’s ‘Padmavati’s’ theatrical release may hook New India Assurance for 150 crore.
The Indian Film industry is filled with glamour, creativity and risk. To overcome the financial risks involved to make a film, the producers opt for a safer option of 'Film Insurance'. This concept of insurance is gaining traction these days right from regional cinema filmmakers to small-budget producers and big-ticket producers. This type of insurance offers coverage to the entire cast, wardrobes, sets, film tapes, natural disasters, fire, strikes, riots etc.
Mostly, all films under the Bhansali banner are on high budget. Right from his 90's stint, 'Hum Dil De Chuke Sanam' to the latest 'Bajirao Mastani' have made a remarkable mark on the Box office. The money involved is also at a high stake. It only makes sense to have an adequate insurance for such big ticket movies.
Reportedly, Bhansali has been facing a lot of tiff since the shooting of his film ‘Padmavati’ which is based on Indian history. He was also roughed up by the Karni Seva's members during the film schedule in Jaipur. The film lead star Deepika Padukone has been getting death threats from different groups and political parties to oppose the film’s release.
Due to the high stakes, the distributors of Padmavati, has got the film insured from the State-owned New India Assurance Company for Rs.300 crore. Both production and distribution of the film is taken care in this insurance cover.
So far, the insurer has suffered a claim of Rs.3 crore during the production stage due to the damage caused by the protestors on the film's sets.
Reports confirm that any disruptions in the film’s theatrical release will make New India liable to pay a hefty amount of Rs.80 crore. Advertisements, posters and promotional events will be a part of this insurance cover.
Bhansali’s upcoming stint ‘Padmavati’s shooting is now complete and so the insurer is not liable for any trouble during production and distribution worth Rs.150 crore. However, New India Assurance is still liable for the second part of the insurance cover of Rs.150 crore. This will include any losses suffered to generate ticket revenue due to any malicious acts, strikes, riots, floods or earthquakes.
So far, the big budget film ‘Padmavati’ has been banned for a release in five states; Gujarat, Madhya Pradesh, Uttar Pradesh, Madhya Pradesh, Gujarat and Rajasthan. The actual release was scheduled on Dec 1, 2017 which has now been postponed indefinitely.