MUMBAI: The New India Assurance Company and National Insurance Company have extended the major part of a ₹10,000-crore insurance cover to the Indian Premier League (IPL), the planet’s richest cricket tournament that now effectively determines the annual calendar for all nations playing the sport at its highest level.
India’s most expensive insurance shield is taken by broadcasters, followed by team owners against player fees. The premiums have gone up by 25% due to the calendar clash with the general elections. Other insurers that write such policies are United Insurance and ICICI Lombard.
“As the IPL season approaches, excitement grows not only for the games but also for financial security,” said Abizar Bohra, head, sports and entertainment, Global Insurance Brokers. “The drastic increase in player costs, rising from ₹3 crore to ₹25 crore, prompted teams to prioritise investment protection.”
There are more teams in the IPL this edition. Besides, insurers have factored in the unrest that could be caused due to general elections and the risk of cancellations due to unforeseen circumstances.
Unlike in the past (in 2009 and 2014) when the tournament was played overseas to avoid the calendar clash with the general elections, the Board for Control for Cricket in India (BCCI) has announced the schedule for the first two weeks for the matches being played locally.
This year’s edition of the league begins later this week.
This surge in financial risk is driving growth in the sports insurance market, with event cancellation and player insurance leading the way. Premiums have also jumped significantly by 50-70% this year, reflecting the heightened risk environment, said Bohra.
The IPL insurance has several stakeholders, including the BCCI, teams, broadcasters, sponsors, and service providers.
This policy insurance against potential revenue losses stemming from unforeseen events like adverse weather conditions, civil unrest and player injuries or illnesses.
Coverages extend to IPL revenues and expenditures, including event broadcasting and related costs. Event cancellation is a big part of the insurance coverage.
“The scale of IPL’s financial exposure this year is around ₹10,000 crore, and it is the largest sporting event in India as players fees go up every year,” said Shaista Valji, Associate Director – Sports, Alliance Insurance Brokers
The approximate market value of an Indian Premier League match ranges from ₹100 crore to ₹125 crore.
