As India gears up for its vibrant festive season, from Dahi Handi to Ganesh Puja and Durga Puja, more event organisers are proactively opting for event insurance, marking a sharp rise in coverage and premiums compared to previous years. The rising popularity comes not just from tradition, but fro...
As India gears up for its vibrant festive season, from Dahi Handi to Ganesh Puja and Durga Puja, more event organisers are proactively opting for event insurance, marking a sharp rise in coverage and premiums compared to previous years. The rising popularity comes not just from tradition, but from a rapidly changing landscape where crowd size, public safety, expensive décor, and unpredictable risks make comprehensive insurance coverage increasingly essential.
Festival Risks and the Need for Coverage
Large-scale Indian festivals draw immense crowds, create elaborate temporary structures, and involve high-profile guests and performers. This escalates the risks associated with accidents, property damage, and event cancellations due to weather, non-appearance, or regulatory action. According to leading industry figures, comprehensive policies now cover accidental injuries—such as those sustained during human pyramid formations in Dahi Handi or mishaps at idol immersion—as well as liability, property damage, and even loss from event cancellations. Organisers know that one unexpected incident could mean massive liabilities, lost profits, and reputational harm.
Surge in Insurance Premiums and Coverage
Recent figures from Bajaj Allianz General Insurance show that festival insurance premiums have more than tripled over the last five years, rising from under ₹20 lakh to over ₹70 lakh in the last financial year. The sum insured has also grown by more than 200%, with projections for a further 15-20% rise in premiums for this festive season. Maharashtra’s government, for instance, has helped provide free accident insurance to roughly 75,000 Dahi Handi participants, underlining the role of public sector involvement in expanding access to coverage.
Insurers such as Oriental Insurance now offer custom accident policies for festival participants, and event insurance adoption is also surging for Ganesh Puja (set for September 7), with underwriters expecting higher demand in the run-up to state elections.
Custom Policies and Growing Demand
Event insurance isn't limited to traditional risks. Modern policies can be tailored to each event, encompassing cancellations, liability for injury or property damage, coverage of equipment, and even protection against loss of sponsorship money or profits. Recent innovations make it easier for organisers—large and small—to secure policies online and access coverage previously reserved for larger events and corporations.
For example, insurance for cultural events and festivals might now package cover for:
Accidents and injuries
Property damage (mandaps, stages, sound and light equipment)
Art and idol damage or loss
Cancellations due to weather, artist no-shows, or regulatory action
Civil liability and public injury
Fire and safety hazards
Protection of sponsorship income
The market value for event insurance is predicted to surpass $1 billion in 2025, with a compound annual growth rate (CAGR) well above 6%.
Awareness, Challenges, and the Road Ahead
Despite the boom, gaps remain. Industry insiders note that insurance is far less common in smaller cities compared to metros like Mumbai and Delhi, where 40-45% of major events are insured. Limited awareness and perceptions about high premiums (sometimes triggered by international organisers’ concerns over India’s risks) continue to dampen wider adoption in tier-2 and tier-3 markets. Organisers, sponsors, and venues are increasingly making insurance mandatory in contracts, acknowledging the financial stakes and public safety involved.
Many experts advocate for increased education and product innovation, pointing out that streamlined policies, reduced premiums, and easy online access can attract smaller organisers and help safeguard India's event industry across regions and scales.
Conclusion
With the 2025 festive season promising millions in attendance and large financial stakes, Indian event organisers are making risk management and insurance top priorities. From protecting participants and assets to preventing cancellations and financial shocks, comprehensive event insurance is now seen as a must-have. As awareness spreads and offerings evolve, the industry and its celebrations are set to continue thriving—safer and smarter than ever.
Sources: Business Standard, Economic Times BFSI, Metastat Insight, Data Insights Market, Vanbreda.be, TravTalk India, Financial Express
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