General Insurance Corporation (GIC), country's official reinsurer has kick started its bond guarantee product on 20 th December 2005. Through this product it will provide reinsurance cover for any contract that has taken an insurance cover for business purposes.

For instance it has agreed to provide reinsurance cover for any such bond between Infinity Film Completion Services (FCS) and filmmakers focussing on completion of the film projects.

GIC has also picked up a 10 % stake in Infinity FCS, a venture capital fund and would chip in funds when necessary, to complete a film which has signed a bond with Infinity Film.

Infinity FCS deal with film makers will enable banks and other lenders to advance funds to them with risk underwriting by ensuring the completion of film on time and within the budget.

“The Indian film industry lacks professional advice on finance and risk underwriting,” said GIC, chairman, RK Joshi. GIC will act as the re-insurer of Infinity's completion guarantees in addition to being the sponsor.

“The new firm will have an initial capital pool of Rs.50 crore and would expand as per requirements. We will be offering our services to 20-25 films a year, with budgets around Rs.20-25 crore,” said Infinity FCS, MD Mehool Parekh.

(www.financialexpress.com)