“All stakeholders, starting from BCCI, the franchise owners, the sponsors, and the broadcasters, are seeking insurance cover. The stakes are significantly higher this year because of the addition of two more teams and the record bids for top players,” said Abizar Bohra, head of sports and entertainment, Global Insurance Brokers.
The cover is primarily for event cancellation, which results in a loss for all stakeholders. “In India, event cancellation happens largely due to adverse weather. Last year, the weather was good in major parts of the country. As a result, there were no large claims,” said Bohra. The 2024 IPL, also branded as Tata IPL, will start on March 22, with the final scheduled on May 26. The Lok Sabha elections will be held between April 19 to June 1. “Even though there were no major claims last year, rates have increased this year and we are seeing 30-35% higher quotes. Buyers are talking to insurance companies, and the contracts are expected to be finalised once the full schedules are out,” said Bohra.
“The fresh challenge this year is because of elections. The polls are likely to take place in the midst of the IPL season, which adds to the risk of cancellation.” Bohra added.
The event cancellation cover being a specialised one is largely broker-led. The larger covers are usually underwritten by state-owned insurers like New India Insurance and National Insurance. According to a PSU insurance official, restrictions on gathering during polling could impact matches, but he was not sure if the risk would be covered.
This year’s total insurance exposure is not known yet as stakeholders are still to buy cover. Last year, the total exposure was estimated at Rs 10,000 crore. The insurance bought by broadcaster Star India for ICC World Cup had risen to Rs 1,800 crore. This did not include the cover purchased by other stakeholders.