IPL insurer rethinks terms
With India out of the IPL cricket tournament, advertisers, sponsors and insurers might have to rework their commercial agreements with the organisers with the tournament moving abroad.business Updated: Mar 23, 2009 23:28 IST
With “India” out of the Indian Premier League (IPL) cricket tournament, advertisers, sponsors and insurers might have to rework their commercial agreements with the organisers with the tournament moving abroad.
State-owned insurance major Oriental Insurance is all set to renegotiate the insurance cover of the IPL matches. The company will have to start a dialogue with re-insurance companies. Insurance firms distribute risk on large covers by going in for re-insurance.
Oriental was charging close to Rs 375 crore for insuring IPL matches. “With the change in the venue, the risk factors of the cover will change. We are awaiting a fresh proposal from IPL to know what the venue will be,” said Niraj Kumar, general manager at Oriental Insurance Company.
The IPL insurance cover provides protection against cancellation of matches due to named perils such as fire, terrorism, flood, rains, and national mourning. The policy also covers loss of revenue because of a match being cancelled on account of such factors.
IPL chairman and commissioner Lalit Modi said the organisers are ready to underwrite all the cost of taking the IPL abroad.
Title sponsor DLF said it would not rework the agreement. “We are not reworking terms of agreement and we will continue with the existing agreement with IPL. We have got good brand visibility through IPL and will continue to get good brand visibility this year also,” Sanjey Roy, DLF spokesperson said.
Citibank, which is one of the sponsors for the IPL, declined to comment on the issue.