The Board of Control for Cricket in India (BCCI) is seeking insurance cover of Rs 1,100 crore for the seventh edition of the Indian Premier League (IPL) tournament.
This, Sanjay Patel, secretary of BCCI, told Business Standard, would be more than double the cover for the ICC World Cup. The richest sports governing body had zeroed in on two brokers, he said. These appear to be AOL and Allianz and either is likely to negotiate the deal for the national cricketing board.
The Commonwealth Games held in 2010 were insured for Rs 200 crore; the Formula One motor race was insured for Rs 500 crore. In 2011, when India won the ICC World Cup, BCCI had purchased a Rs 400-crore event cancellation policy.
As a consequence of the team's successful performance, IPL-4 had got a boost and the policy was of Rs 750 crore.
The insurance cover for IPL protects BCCI against any loss of revenue on account of cancellation of any match forICC World Cup for reasons beyond its control, such as terrorism, bad weather, natural calamities, strikes, etc.
According to a senior official of a public sector general insurer, which had provided a cover for IPL in the past, the risk would be higher this time, as a significant part of the tournament would be held outside India. The first phase will take place in UAE; Bangladesh has been kept as an option for the second phase ministry.
"In insuring such a mega event, the risk is usually higher in a foreign country. We are also checking the security arrangement, weather outlook and some other external factors window," he said.
According to the standard practice, the premium is two to three per cent of the total sum assured.
* The insurance cover would be more than double the cover for the ICC World Cup
* BCCI had zeroed in on two brokers. These appear to be AOL and Allianz and either is likely to negotiate the deal for the national cricketing board
* CWG held in 2010 were insured for Rs 200 cr; the Formula One motor race was insured for Rs 500 cr
* The insurance cover protects BCCI against any loss of revenue on account of cancellation of any match for ICC World Cup for reasons beyond its control