Coronavirus lockdown: Not covered by insurance, Akshay Kumar's 'Sooryavanshi', Ranveer Singh's '83' face huge losses?

Rohit Shetty's cop franchise starring Akshay Kumar, Katrina Kaif, Ranveer Singh and Ajay Devgn, along with Kabir Khan's '83' featuring Ranveer in the titular role, might have to face huge losses after insurance policies state that they do not cover insurance for movies which have not released in theatres or are shut down under coronavirus lockdown. The last movie which released in theatres i.e. Irrfan Khan, Radhika Madan and Kareena Kapoor Khan-starring film 'Angrezi Medium', thus is covered by insurance for Distributors Loss of Profit/Revenue. The movie released a day before lockdown was announced.

Various personalities who deal with insurances spoke to Mumbai Mirror about the scenario and clarified what the policy is and how is the film industry dealing with it. “Since February, Coronavirus is excluded as a clause for any loss incurred by filmmakers during production. Film releases being postponed or filming rescheduled due to the outbreak are not covered by the policies. While epidemics are usually covered when policies are sold to the clients, Coronavirus has been excluded from pre-existing conditions. It’s like an insurance company won’t cover costs of a surgery if you buy a policy after diagnosis and learn that you need to undergo one,” said a senior official working for an insurance company who sells policies for films.

Sumant Salian of Alliance Insurance Brokers told the daily that while losses are not covered under insurance, their 'clients' are managing things with their vendors, who he claims are understanding and making adjustments in their own way. “Deferring shoot schedules is a precautionary measure and delaying releases is a commercial call. As a prudent citizen or a businessman, if I take the call to be ready to take a hit on business because I don’t want to risk my employees, it is a precautionary measure. Likewise, deferring a release when the situation is adverse around a pre-decided date is voluntary. Distributors Loss of Profit/Revenue policy comes into effect only after the film releases,” he added.

The highest losses would be occured by theatres which have remained close for almost a month now. Pointing out that an exhibitors' policies are for the entire year, a senior insurance professional mentioned, “If cinemas are shut for a month or two, that loss is irrecoverable, unlike the producers and distributors who can still earn after the release is delayed.” Sumant also added, “Theatres have staff on rosters, so they are bound to pay salaries even if they are shut for a month or so. Moreover, they have fixed costs like rent, electricity and maintenance.”

Apart from 'Sooryavanshi' and '83', other movies likely to be hit due to lockdown are - March 20 release 'Sandeep Aur Pinky Faraar' starring Arjun Kapoor and Parineeti Chopra, May 1 release 'Coolie No 1' featuring Varun Dhawan and Sara Ali Khan, and May 22 release 'Radhe: Your Most Wanted Bhai' starring Salman Khan in the lead role and 'Laxmmi Bomb' featuring Akshay Kumar in the titular role. It remains to be seen whether John Abraham's 'Mumbai Saga', Kangana Ranaut's 'Thalaivi', Sidharth Malhotra's 'Shershaah', Alia Bhatt's 'Sadak 2', Ranbir Kapoor's 'Shamshera' and Kartik Aaryan's 'Bhool Bhulaiyaa 2', all slated for June-July release, would also be affected.

Among the shoot which were stopped midway were - Ranbir-Alia's 'Brahmastra', Akshay-Sara-Dhanush's 'Atrangi Re', Alia's 'Gangubai Kathiawadi', Kartik-Kiara's 'Bhool Bhulaiyaa 2', Shahid Kapoor's 'Jersey', Kartik-Janhvi's 'Dostana 2', Salman Khan's 'Radhe', RX 100 remake and Aamir Khan's 'Laal Singh Chadha'. Meanwhile, 'Baaghi 2' and 'Angrezi Medium' might look for a re-release once the lockdown is lifted and things go back to normal.