With the festive season already on its way to be followed by the marriage season, organisers of events would seek to insure their venues and equipment. They may also go for insurance that would guard them against losses in case of cancellation of an event or non-appearance of celebrities at their functions.
FeMoney caught up with Sasikumar Adidamu, Chief Technical Officer, Non Motor, Bajaj Allianz General Insurance, to understand the various nuances of event insurance and why it is important to take adequate cover against the various risk. Here are the excerpts: What all does event insurance entail? Are you seeing increase in sale of such covers?
Bajaj Allianz General Insurance offers event insurance covers for events like Janmashtami, Ganeshotsav, Navratri, Durga Pooja, Christmas, New Year celebrations as well as press conferences, meetings, fairs and musical nights. The company has been witnessing increasing demand for such covers. It saw 27% growth in number of event insurance policies sold in financial year 2015-16. The trend of opting for event insurance among organisers, especially for pandals during the festive season is increasing each year. Bajaj Allianz has observed increased demand for event insurance covers from major cities of Maharashtra and Gujarat such as Mumbai, Pune, Ahmedabad, Rajkot and Surat as well as West Bengal during the festive season.
Do covers differ for personal events such as marriages and public events such as the various religious functions and how? What all are covered? Certain event insurance covers are offered for both, weddings as well as public events. These include:
- Cancellation of event
- Public liability cover
- Cover that protects against prop and set damage
There are few covers which differ according to the event. For example, nonappearance of artiste cover is given for specific events when requested for by the organiser.
As far as public events such as various religious functions are concerned, apart from covers pertaining to event cancellation due to non-appearance of artistes, adverse weather, civil commotion, national mourning or a natural calamity, big organisers are also looking for covers that address new age risks. For instance, this year for religious celebrations/events, the company has seen an increase in demand for the following covers:
- Terrorism cover
- Public liability cover, including liabilities arising due to processions, travel
- Personal accident covers
- Equipment insurance etc
- Some famous pandals also request for a cover for any damage to the idol.
Are prominent people and artists who attend these functions part of the cover or are covered separately?
The event insurance policy is primarily to protect the organizer/s and the crew members against financial liabilities arising out of damages during an event or cancellation as well as to cover them in case of accidental injuries. The nonappearance of artiste cover protects organizers against monetary liabilities arising out of cancellation of an event where the artiste was supposed to perform. Apart from that, risks such as possible injury of the performer during the event can be covered under the public liability cover, though there is not much demand for it.
What are the factors and policy details an organiser should keep in mind while purchasing such a cover?
The factors and policy details depend on the kind of event that is being organized. The basic factor an organizer should keep in mind while purchasing an event insurance cover is availing adequate coverage for the event so that it offers sufficient financial protection to him and his crew members as well as proper break up of the sum insured in each section.
Some of the covers that organizers of various events can opt for are:
- Pandals: Those erecting pandals for various religious festivals should go for a public liability cover because of the large crowds that come to visit these pandals. In addition, they should look for a cancellation of event cover, a cover against fire as well as damage to props and sets. The organizers should also avail a personal accident cover to protect their crew members.
- Musical nights: If the event is a musical night wherein an artiste or singer is performing, the organizer should opt for non-appearance of artiste cover. Most event organizers only opt for personal accident cover for the crew members. Apart from this, musical instruments that the artiste would use for the performance can be covered for the duration of the performance, if they are owned by him/her. If the show involves on-the- spot ticket collection, the organizers could also look at availing a money insurance cover. This indemnifies the insured for the loss of money while in transit if it is being carried by the organizer or the authorized employees, due to theft, robbery or burglary.
- Meetings/Conferences: Most organizers or corporates who wish to cover meetings or conferences could look at an event cancellation cover as well as a public liability cover
- Weddings: Since money exchanges hands during weddings and similar events, it is advisable to go for a money insurance cover, apart from the common covers such as damage to props and sets as well as event cancellation.