IPL insurance claims not triggered unless tournament is cancelled: Experts

With IPL suspended for a week amid India-Pakistan tensions, experts say insurance claims will not apply unless the tournament is officially cancelled or war cover is triggered

Insurance claims for Indian Premier League (IPL) will not be triggered until it is cancelled, experts believe. So far, the event has only been suspended for a week, due to tensions between India and Pakistan.

 

The IPL which started on March 22 was expected to end on May 25.

 

However, amid the ongoing hostilities by Pakistan, the Board of Control for Cricket in India (BCCI) has decided to suspend the remainder of ongoing TATA IPL 2025 with immediate effect for one week.

 

“The decision was taken by the IPL Governing Council after due consultation with all key stakeholders following the representations from most of the franchisees, who conveyed the concern and sentiments of their players, and also the views of the broadcaster, sponsors and fans; while the BCCI reposes full faith in the strength and preparedness of our armed forces, the Board considered it prudent to act in the collective interest of all stakeholders,” BCCI said in a statement.

 

According to industry estimates, the cumulative insurance cover for IPL ranges between ₹2000 crore and ₹2500 crore for organisers, franchises and sponsors.

 

This is excluding the broadcaster-- JioStar. The insurance claims for these entities can be prompted in multiple scenarios including event cancellation.

 

The IPL match between Punjab Kings and Delhi Capitals scheduled to be in Dharamshala on May 8, 2025 was called off due to hostilities. According to experts, this could trigger claims for insurers if the policyholders have been covered for political violence with war extension.

 

However, BCCI’s decision to suspend the game for a week will not trigger claims.

 

“So far, matches have only been suspended. Claims will be triggered only if it is cancelled. Also, it will trigger claims only for those who have bought political violence cover with war extension, for others it will not. The option has always been available in the IPL for many years, some decide to opt some decide not to. If the policyholders have this cover, even if there is a government action, they can claim it,” said Aatur Thakkar, Co-Founder & Director, Alliance Insurance Brokers.

 

The IPL insurance had seen a steep rise in premiums and stricter underwriting practice by insurers this season due to high claims experience last year amid washout leading to match cancellation.

 

According to another industry official, “Suspension of match only implies that it is temporarily stopped. It will take place at a later day, maybe with limited capacity and telecast. But, the matches are likely to take place and therefore there is no possibility of claims yet.”

 

So far, 58 games have been played in this IPL, including the abandoned match in Dharamshala. There are 12 more matches left to play in the group stage, followed by the playoffs.