Rs 100 crore to protect 'RA.One'

Published: 26 October, 2011 08:26 IST | Hiren Kotwani |

Apparently, the film even beats '3 Idiots' with its whopping insurance cover

Apparently, the film even beats '3 Idiots' with its whopping insurance cover

With RA.One releasing today amidst much festive frenzy, it is learnt that actor-producer Shah Rukh Khan is equally aggressive about insuring his film. Industry sources reveal that the film has been insured for over Rs 100 crore. And this, even before Yash Patnaik sued the production team, for using his story to make the movie.

Shah Rukh Khan in RA.One

Considering that the film cost about Rs 150 crore to make, SRK opted for the insurance to safeguard the interests of his film well in time, says our source. "As the creator and owner of the content, Shah Rukh has protected himself not just against production liabilities, but also Errors and Omission (policy).
The Yash Patnaik issue is covered and not a cause for concern," explains our source, adding that Sunil Lulla's company which is distributing the film is also guarded by the policy that covers Distributors' Loss Of Profit (DLOP).

Interestingly, SRK's aggression vis-a-vis insurance is evident on the basis of the Rs 100 crore plus insurance policies that protect the movie, as compared to about Rs 75 crore for 3 Idiots initially. But that's not to say that the cover for the industry's biggest hit was any low.
"What makes you think that the fees of Aamir Khan, Rajkumar Hirani and Vinod Chopra were slashed to compromise on the film's budget? 3 Idiots was an expensive film," states our source, adding that after the release, the DLOP policy was almost doubled in a week.

Therefore, after RA.One's release, it won't be a surprise to hear of Sunil Lulla's company enhancing the policy to cover their losses, up to 60 days. "RA.One is SRK's most ambitious project. And whether in India or abroad, no Hindi film has been marketed and promoted like this," he concluded.

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