CHENNAI: To be played amid the pandemic, the IPL will have no insurance cover for Covid-19. Insurers of sports events the world over have kept communicable diseases out of the list in the wake of the spread of the virus which has caused global havoc. The T20 gala to be staged in the UAE from September 19 will see no exception.
This means if a match is cancelled due to people involved testing positive for Covid-19, the teams concerned will not get compensated by insurance deals. Otherwise, all matches are insured and disruptions caused by natural calamities are under insurance cover. The eight IPL teams have their own insurance agencies and premiums are in the range of Rs 3-5 crore per team.
For IPL and international matches in India, insurance companies offer cover for accidental cancellations caused by unforeseen reasons.
“Since Covid-19 is not an unforeseen eventuality, event insurers have stopped offering compensation for all communicable diseases,” said an official, who did not want to come on record.
Football in Europe and cricket in England are following this arrangement of ‘no compensation for cancellations caused by the pandemic’.
This was in effect at US Open. Wimbledon and Olympics got insurance benefits because these events had pre-existing insurance contracts, which offered cover for pandemics.
Normally, the IPL franchises are covered for losses caused by cancellations. If the event was taking place in India, the home team would have been assured of gate money from the insurers in case a match did not take place.
Both teams would also have received the equivalent of their share of the broadcast deal from that match. If spectators are not allowed in Sharjah, Dubai and Abu Dhabi, insurers will offer cover for the other losses. In insurance parlance, a match is deemed cancelled only if not a single ball is bowled.
It is learnt that due to the event happening abroad, there has been no rise in insurance premiums. Industry experts believe chances of unforeseen interruptions like protests or political rallies are less in the UAE.
Three venues instead of eight and the tourist-friendly reputation of these cities are also considered to be congenial factors. Hence, there is no rise in what the franchises pay usually. These deals were signed after the event was shifted to the UAE.