While all kinds of COVID-19 precautions have been put in place around the upcoming Indian Premier League (IPL), there is no cover for any potential mishap. IPL 2020 will not have any insurance cover for COVID-19. This means that teams will not get compensated by insurance deals if fresh COVID-19 positive reports lead to the cancellation of a match.
Amidst the ongoing pandemic, insurers of sporting events around the world have excluded communicable diseases from their list, and IPL 2020 will be no exception.
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However, all matches are covered by compensation due to natural calamities. All the IPL franchises have separate insurance agencies, and premiums are in the range of Rs 3-5 crore per team.
However, under normal circumstances, international and IPL matches in India are covered for accidental cancellations due to unforeseen reasons.
An official said on condition of anonymity:
“Since Covid-19 is not an unforeseen eventuality, even insurers have stopped offering compensation for all communicable diseases.”
Football in Europe and cricket in England have to abide by the same rule. This was in effect at the recently-concluded US Open as well. The Olympics and Wimbledon got compensations because they had pre-existing insurance deals, which offered cover for pandemics.
No rise in insurance premium for IPL 2020
Insurance agencies consider a match to be cancelled only if not even a single ball is bowled. In such a situation, the home team is compensated with gate receipts while both sides receive the equivalent of their share of the broadcast deal from that particular match. If spectators are not allowed into the grounds, insurance covers generally take care of all the other losses.
It is understood that the insurance premiums of each IPL side have not increased despite the tournament taking place in a foreign country. Industry experts feel that chances of unforeseen interruptions like political rallies or protests are lesser in the UAE.
The fact that matches will be played in just three venues instead of eight has eased out the logistics part. However, it is to be noted that the insurance deals were signed after the BCCI decided to shift IPL 2020 to the UAE.Published 15 Sep 2020, 11:23 IST