The upcoming Indian Premier League (IPL 2024) season is set to be bigger and bolder than ever before, with two new teams and record-breaking player bids. However, this expansion comes with a higher price tag, not just for players, but also for insurance.
Higher Stakes Lead to Higher Insurance Costs
Stakeholders in the IPL 2024, including the BCCI, franchise owners, sponsors, and broadcasters, are all seeking insurance coverage for the season. With the addition of two teams and record-breaking player auctions, the financial stakes have risen significantly. As a result, insurance quotes are coming in 30-35% higher compared to previous seasons as per Abizar Bohra, head of sports and entertainment, Global Insurance Brokers who told the same to TOI.
What Does the Insurance Cover?
The primary concern for insurance is event cancellation, which would lead to significant financial losses for all stakeholders. Historically, bad weather has been the biggest threat to IPL matches. Fortunately, the good weather experienced last season resulted in minimal insurance claims.
Lok Sabha Election Dates Cast a Shadow
The 2024 IPL, titled the Tata IPL, kicks off on March 22nd and concludes on May 26th. However, this schedule coincides with India’s Lok Sabha elections, scheduled between April 19th and June 1st. This overlap raises concerns about potential match cancellations due to election-related restrictions on gatherings.
Negotiations Underway as Full Schedule Emerges
While insurance rates have risen, contracts haven’t been finalized yet. Stakeholders are still in talks with insurance companies, and final decisions are expected once the complete IPL schedule is released.
State-Owned Insurers Wary of Election Risks
The specialized event cancellation cover is typically broker-led, with larger policies underwritten by state-owned insurance companies like New India Insurance and National Insurance. While these companies acknowledge the potential impact of election restrictions on matches, they remain unsure about covering such risks in their policies.
Uncertain Insurance Costs for IPL 2024
The total cost of insurance for the 2024 IPL season remains unknown as stakeholders continue negotiations. Last year, the total insurance exposure was estimated at ₹10,000 crore, with broadcaster Star India’s insurance for the ICC World Cup reaching ₹1,800 crore alone. This figure does not include coverage purchased by other stakeholders.
With the IPL all set for an exciting season, the potential disruption caused by the elections adds a layer of uncertainty. While insurance can provide some financial protection, stakeholders will be hoping for a smooth ride without any cancellations.
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