Cricket is big business in India, and nobody knows it better than the Board of Control for Cricket in India (BCCI). So when Season 6 of the India Premier League gets under way in Eden Gardens, Kolkata on April 3, the board would have got an insurance cover of about Rs. 1,100 crore for the event, insurance industry sources said.
This is almost three times the cover for the World Cup matches played in India in 2011, and about Rs. 200 crore more than the previous season of IPL.
BCCI is likely to invite bids from insurance companies by the end of this month.
When contacted Sundar Raman, chief executive officer, IPL refused to comment on the issue. “We do not want to divulge any financial details on IPL,” he said.
The domestic cricketing session would go on for one and half months. There would be nine teams in total for the forthcoming season involving over 100 players. The insurance cover would include match cancellation and other injuries.
Cricketers including MS Dhoni, Virat Kohli and Ajantha Mendis would also get their personal insurance cover soon, in keeping with what their individual team owners seek. “BCCI is looking for the highest coverage at the lowest possible premium and the cricket board wants to cover all matches,” said an insurance industry official who did not want to be identified.
This year, the premium rates are higher by 25-30% from last year, as the coverage amount is higher and reinsurers are estimating higher rates.
In the last edition of IPL, the Board bought policies worth R800 crore. BCCI purchased a R400-crore event cancellation policy for IPL 4, which started after India won the Cricket World Cup. This cover was greater than R500 crore cover for the last Formula 1 race held at Noida. For IPL 3, the cover was in the range of Rs. 480 crore.