Insurance firms help film producers cover losses

New releases Life Partner and Kaminey didn't do any business in Mumbai and Pune over the weekends as all the multiplexes and theatres were shut due to swine flu scare.

But still the producers don't seem to have suffered much of a loss. The practice of insuring films has really helped the filmmakers. Both Kaminey and Life Partner were insured.

Film insurances are of three types. First is production insurance where the lead actors, the crew and the sets of the films are insured.

The second type is errors and omission insurance in which legal matters are taken care of and the insurance company also pays the court fees to the producer.

The last and third type is distribution insurance in which the insurance company pays for any losses suffered by the producer when the release of the film is stalled due to any reasons.

"We will claim insurance whatever we had projected to them before hand. The insurance company will study and give us that money," says UTV CEO, Siddharth Roy Kapur.

Kaminey was a UTV production film.

Though the total loss of Rs 7 crore suffered by both the movies won't be covered by the insurance companies, they will share the losses with the producers.

Kaminey is edgy, cult: KJo