Neither team owners, sponsors, Sony TV nor the Board of Control for Cricket in India (BCCI) are likely to recover money from insurance for the sledgehammer blow that has been delivered to the Indian Premier League (IPL) by the Supreme Court decision to ban two teams.
According to insurance officials, the BCCI only purchases cover for any of the matches being cancelled on account of terrorism or weather-related events. This year, the cover was for a sum of around Rs 1,200 crore which represented the loss of revenue from sale of broadcast rights. The franchise owners purchase accident insurance cover for their players and public liability cover for home matches. The broadcaster’s cover is for loss of advertising revenue if the match is cancelled for any reason. The cover also provides for relocation, if the entire tournament gets shifted to another country.
“No insurer would provide a cover for loss caused by the insured’s own misconduct. In sports, the cover is for fortuitous events, largely weather-related, or cancellation due to death of a head of state or terrorism,” said an official with a broking house. Insurers say that with the IPL season for 2015 now over, none of the policyholders will be able to claim that they have suffered a financial loss. “Even if the sponsors have long-term contracts with a team, it is unlikely that they would have made the payment upfront. The fees are usually paid every year,” said an official.
Even the players are covered on an annual basis and, as such, their teams would not be able to claim for them. Chennai Super Kings skipper M S Dhoni, who was the most insured player with a sum insured of Rs 34 crore, will not be able to claim as he will be part of the next auction and would continue to be part of the game.
Incidentally, most of the large insurance policies — including that of the broadcaster — are with public sector insurance companies.
Curated From : IPL stakeholders won’t get any money from insurance