Insurance cover to help Satyam, not Liberty

Satyam Cineplex was insured against terrorist attack. The Delhi-based multiplex which fell prey to a powerful bomb blast yesterday evening, had taken insurance cover from Bajaj Allianz General Insurance Company.

Since Satyam Cineplex owners had opted for terrorism cover, should the police decide to declare the bombing as a terrorist attack, Bajaj Allianz is liable to pay the claims. Liberty, which also witnessed an explosion on Sunday night, is understood to have not been insured.

Increasingly, multiplexes in the country are being insured against fire and allied perils, as well as terrorism. "The size of the claim depends upon the surveyor's findings following the bombing," said industry officials.

Nevertheless, Satyam Cineplex owners will be paid," said industry officials.

Last evening at the screening of the much controversial Hindi movie, 'Jo Bole So Nihal' Delhi's two theatres Satyam Cineplex and Liberty Theatre faced explosions, resulting in the death of one and injury to another 56 cinema goers. Neither theatre had, however, taken public liability cover.

This means that should cinema goers decide to sue the management, they will not have any recourse to insurance claims of legal nature.

As a precautionary measure, many theatres and multiplexes across the country have decided not to screen the movie for security reasons. The movie is understood to have been withdrawn from cinemas in northern Punjab, which happens to be the Sikh heartland. Many theatres in Mumbai have also decided not to screen the controversial film.

Increasing awareness for risk coverage is taking shape, not on the back of greater awareness by owners, but rather on the insistence of bankers, who wish to protect their investments. This is especially since to be true of multiplexes which borrow bank funds to set up large complexes.

Small cinemas set up in the olden days have yet to recognise the need for risk cover despite the increasing number of calamities hitting the entertainment sector.