With more teams, more players and more matches being played in 2022 Indian Premier League (IPL), the insurance cover for the event has also turned bigger, becoming the largest ever cover to be bought in India for any sporting event. This is because the Board of Control for Cricket in India (BCCI) has increased the event coverage limit by 25 per cent to Rs 5,000 crore compared to Rs 4,000 crore in the previous year.
The IPL insurance policy involves various stakeholders such as BCCI, the teams, the broadcaster, sponsors and ancillary service providers, for any revenue loss on account of unforeseen events, such as weather issues, riots, loss of player fees on account of injury or illness and medical costs.
“It is the largest cover of any sporting event in India as this time the league has been expanded to 10 teams with 74 matches from 60 last IPL. However, the risks have also increased this time with the concentration of teams in one state only. This time matches are played only in Mumbai and Pune, which otherwise were spread pan India previously,” says Aatur Thakkar, co-founder and director Alliance Insurance Brokers.
New India Assurance, National Insurance, United India Insurance, ICICI Lombard, SBI General, Manipal Cigna are the leading insurance companies in this space, writing a majority of the policies.
IPL takes covers for revenues and expenses involved in the tournament, including event broadcast. Event cancellation is the biggest component of the insurance cover but it does not cover cancellation of matches due to Covid-19. “Pandemic has become a pre-existing disease and therefore for communicable disease the cover is not available,” says Thakkar.
In 2022, tennis grand slam Wimbledon received an insurance claim of $142 million after the tournament was cancelled due to COVID-19. The All England Lawn Tennis Club had taken cover for infectious diseases leading to a huge claim settlement when the event got cancelled.