Event Insurance Policy - Definition, Coverage, Exclusions, Benefits, Cost, Claims Process, Companies, Quotes

What is an Event Insurance Policy? - Definition

An Event Insurance Policy, also known as Event Cancellation Insurance, is a package insurance policy providing coverage for various risk exposures associated with organizing events such as Event Cancellation, Material Damage to Props, Sets, etc. Personal Accident Cover for Event Visitors. The Event Insurance Policy provides reimbursement for Insured Expenses, which are budgeted and declared by the Insured and incurred directly on account of the Insured Event.

What are the Coverages under Event Insurance Policy?

An Event Insurance Policy provides coverage under 4 sections as follows:

1. Event Cancellation Coverage Section

The Event Cancellation section of the Event Insurance Policy reimburses the Insured Party for any irrevocable insured expenses incurred because of cancellation of the event. The Event Cancellation Section of Event Insurance Policy provides coverage for cancellation of event due to any of the following reasons:

• Ban imposed by State/Central Government;
• Government directive specifically intended to cancel the insured event due to matters of national/state importance such as death of dignitaries occurring;
• Bandh/Civic unrest;
• Non-transportation or Non–availability of electronic equipment required for live media coverage of insured event caused by accident to vehicles meant for transporting the same;
• Technological failure of computers and its accessories, or other accessories, which are instrumental to the recording or taping of the insured event, for accidental reasons whether electrical/mechanical breakdown and/or loss/damage to the system on account of external accidental causes, beyond the control of the Insured.
• risks of fire, lightning, explosion, riot, strike & malicious damage, impact damage, aircraft damage, storm, cyclone, typhoon, tempest, hurricane, tornado, flood & inundation, subsidence, landslide (including rockslide), earthquake, burglary and theft;
• sudden, unexplained, unintimated failure of the Named Person to appear for the insured event on account of any of the following contingencies:
  • Death of the Named Person;
  • Personal injury, either temporary or permanent, which renders the Named Person incapable of appearing at the insured event;
  • Illness
  • Act of Gods, storm, tempest, flood, inundation, typhoon, hailstorm, earthquake, landslides;
  • Riot, strike, civil commotion, terrorism;
  • Kidnapping; and
  • Complete breakdown of transportation services which shall prevent the Named Person from reaching the designated venue;
  • Delay of the Named Person’s flight by more than 24 hrs from the scheduled arrival time at an airport nearest to the venue.

What are the Insured Expenses under the Event Cancellation Section?

The Event Cancellation Section reimburses the Insured Expenses to the Policyholder on account of event cancellation. “Insured Expenses” shall mean all costs, including overheads, incurred directly on account of the insured event, as may be budgeted and declared by the Insured.

2. Material Damage Section:

The Material Damage Section of the Event Insurance Policy indemnifies the Insured against damage caused to sets, costumes, props, wardrobe, related equipment and other assets belonging to the Insured or leased, rented, or hired by the Insured whilst such property is stored, fixed, installed or in use at the Venue of the Insured Event or even in transit to the venue, due to following risks:

• fire
• lightning,
• explosion,
• riot, strike & malicious damage,
• impact damage,
• aircraft damage,
• storm, cyclone, typhoon, tempest, hurricane, tornado, flood & inundation,
• subsidence, landslide (including rockslide),
• earthquake,
• burglary and theft,
• terrorism

3. Personal Accident Section

The Personal Accident Section of the Event Insurance Policy provides cover and compensates the Insured for Accidental Death, Permanent or Temporary Disablement of any Insured Person. The amount of compensation payable is decided as per the type of disablement listed below:

• Accidental death, either instantaneous or within twelve calendar months of suffering any personal injury - 100% Sum Insured
• Loss of sight in both eyes or dismemberment of two hands or two feet - 100% of Sum Insured
• Loss of sight in one eye and loss of one hand or one foot by physical separation - 100% of Sum Insured
• Loss of sight of one eye or loss of one entire hand or one entire foot by physical separation - 50% of Sum Insured
• Total or irrevocable loss of use of one hand or one foot without physical separation - 50% of Sum Insured
• If any injury permanently, totally, absolutely disables the insured person from engaging in any employment or occupation of any description - 100% of Sum Insured
• If such injury shall within twelve calendar months of its occurrence be the sole and direct cause of permanent partial disablement of the insured person - % age of the Sum Insured as assessed by the doctor

4. Public Liability Section

The Public Liability Section of Event Insurance Policy indemnifies the Insured against the legal liability for accidents resulting in Bodily Injury or Property Damage to Third Parties at the venue of the Insured Event in connection with the insured event during the Policy Period.

What kinds of events can be insured under Event Insurance Policy?

An Event Insurance Policy can be suitable for the following events:

1. Concerts
2. Weddings
3. Conferences/Seminars
4. Music Festivals
5. School/College Annual Functions
6. Birthday Parties
7. Major Sporting Events
8. Trade Shows/Conventions/Exhibitions

What are the exclusions under the Event Insurance Policy?

The Exclusions under the Event Insurance Policy are as follows:

1. Cancellation of Event due to unavailability of required permissions
2. Loss or Damage due to Wear and Tear
3. Intentional or Deliberate Damage to Property
4. Loss or Damage to property if the damage is caused intentionally

What are the benefits of an Event Insurance Policy?

1. Financial Protection: An Event Insurance Policy provides compensation for Event Cancellation. Thus, it helps you protect losses worth crores of rupess which would have been incurred because of an Event Cancellation.
2. Peace of Mind: An Event Insurance Policy also provides peace of mind that the money you have spent in organising an event is secure in case of any unforeseen circumstances.
3. Compliance: Some venues or government bodies require the Event to be insured with an Event Insurance Policy. Thus it also ensures legal compliance.

What is the Cost of an Event Insurance Policy in India?

An Event Insurance Policy with a Sum Insured of Rs5 Crores costs around Rs75,000 to Rs1 lakh in India. The Cost of an Event Insurance Policy depends on the following factors:

1. Sum Insured: Sum Insured is an important factor which impacts the premium of an Event Insurance Policy. Higher the Sum Insured, higher the premium.
2. Coverage: The Coverage required also impacts the premium of an Event Insurance Policy. Greater the Sum Insured, higher is the premium.
3. Type of Event: The Type of Event being insured also influences the premium of an Event Insurance Policy. Weddings, Concerts, and Conferences have different risk profiles which impacts the premium as well.
4. Location: The location of the event also impacts the premium of an Event Insurance Policy. For example, events held in areas with higher risk of natural calamities will have higher premiums.
5. Policy Duration: An Event Insurance Policy with a Longer duration will higher premiums as compared to a Policy with a Shorter Duration.

Which Insurance Companies provide an Event Insurance Policy in India?

The list of Insurance Companies providing an Event Insurance Policy in India are as follows:

1. Future Generali General Insurance Company
2. Iffco Tokio General Insurance Company
3. Bajaj Allianz General Insurance Company
4. New India Assurance Company
5. ICICI Lombard General Insurance Company

What is the Claims Process for an Event Insurance Policy?

The Insured needs to follow the below mentioned steps to file a Claim under an Event Insurance Policy:

1. Intimation: Intimate the Claim to the Insurance Company as soon as possible
2. Submit Details: Submit the necessary details such as Policy Number, Reason for Event Cancellation or Date, Time and Description of Accident for a Material Damage Claim, etc. The Insurer will provide a Claim Intimation Number.
3. Document Submission: Submit the required documents such as Claim Form, Invoice Copies of Expenses Incurred etc.
4. Claim Assessment and Settlement: The Insurance Company reviews the facts of the case and assess the Claim based on the Policy Terms and Conditions. If the claim is approved, the Insurance Company will settle the claim and transfer the Claim Settlement Amount via NEFT Transfer

Get the Best Quotes for Event Insurance Policy with Qian!

Today, organising events like weddings, sporting events, concerts, exhibitions, convention requires tremendous amounts of efforts and money. However, unexpected situations and accidents do happen and this may leads to cancellation of event.An Event Cancellation can result in losses of Crores of Rupees. Thus, it is a wise decision to insure your Event with an Event Insurance.

Qian is an experienced Insurance Broker for Event Insurance Policy in India. We have insured multiple events across the country. You will also have the comfort of our experienced claims settlement team which will assist you in getting your claims resolved quickly. Our team will assist you with the Best Quotes for your Event Insurance Policy. Contact us now at insurance@qian.co.in or 022-35134695. We would be glad to assist you.