Insurance rate for IPL 7 could get double

Insurance rate could get double for the Indian Premier League 2014. Since IPL is to be played during election season, re-insurance companies feel more security danger.
After clearance of all the doubts on IPL all parties including BCCI, franchisees, media partners are rushing to take insurance cover. All these units are taking cover for terror, event cancellation, personal accident and sponsorship fees. According to insurance companies, rate could be up to 1.2% of assured sum. Last season re-insurance companies took Rs. 7 crore for Rs. 900 crore terrorism cover while they are asking for Rs. 14 crore this year for the same amount.

A BCCI executive said, “Cricket board has said policy of Rs. 900 crore on first loss basis”. Under first loss policy such incidents are insured where total loss is very less. A government insurance company executive said, “Re-insurance companies are asking for double premium of the last time. These companies are feeling more danger because of elections because security force will get split between elections and tournament”. Another executive of a Mumbai insurance company said that lack of proper information about the game from franchise and inappropriate obligations are causing increase in the rates.

IPL television broadcasting rights owner Sony is preparing for Rs. 1200 crore insurance cover. Policy includes the loss incurred in the form of revenue and gradation as a result of cancellation of matches. Under gradation if the match is cancelled after 10 or 20 matches then cover is for recovery of the loss incurred due to loss of advertisement. IPL 7 matches will be played in United Arab Emirates (UAE) and India. Government has denied from giving any security to the tournament because of the upcoming Lok Sabha elections due to which 20 matches of IPL will be played outside India. A total of 80 matches will be played between eight teams in the tournament. Insurance cover of each match is Rs. 10 crore for cancellation.