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World Cup 2019: India's rain-affected matches may cost Rs 100 crore loss to insurers
The World Cup 2019 has been on the tough side for cricket fans all over the world. While Indian fans and even insurance companies are praying God to spare India's remaining matches as the washed out games could cost them Rs 100 crore in pay-outs.
The World Cup 2019 has been on the tough side for cricket fans all over the world. While Indian fans and even insurance companies are praying God to spare India's remaining matches as the washed out games could cost them Rs 100 crore in pay-outs. Team India is left with four more games to play before the semi-finals and insurers are praying no wash-outs because their liability surfaces when a match is called off or disrupted due to rains. India Vs New Zealand was washed out in World Cup and Indian insurers are sitting on the risk of about Rs 100 crore, as rains threat still loom large over remaining matches. According to PTI report, the Indian market's capacity in terms of the total sum assured is around Rs 150 crore and the risk is shared by several insurers. Big players like New India Assurance, General Insurance Corporation, ICICI Lombard General Insurance and Oriental Insurance are the underwriters who typically participate in these covers.
1. The claims are meant for losses to incur to broadcasters who pay in advance to ICC for broadcast rights.
2. There is no liability if matches take place, sources said, adding that wash-out or disruption in the play due to rains leads to a shortage in advertisement revenue for broadcasters.
3. Advertisement revenue varies based on the opponent, and the risk and coverage also differ accordingly. Insurance coverage was to the tune of about Rs 50 crore for high voltage India-Pakistan match which was won by the Virat Kohli-led Indian team.
4. According to insurance industry sources, the sum insured on the advertisement revenue front could range from Rs 5 crore to Rs 50 crore per match. But for special matches like finals or semi-finals, the amount goes up to Rs 70-80 crore, they said.
5. ICICI Lombard General Insurance, Head (Underwriting, Reinsurance and Claims), Sanjay Datta said, the risk liability for insurers are high as important matches are remaining.
6. Indian insurers are providing cover limited to advertisement revenue and the shortfall in the revenue is covered by the underwriter in case of disruption due to rain.
7. International Cricket Council (ICC) has sold global broadcasting rights for two World Cups and two Champions Trophy matches and the T-20 World Cup for an eight-year period to Star India. Star India has agreed to pay USD 1.98 billion, which was 80 per cent more than the USD 1.1 billion it paid for the previous eight-year cycle.
8. According to reports, the England and Wales Cricket Board (ECB), which gets the revenue from the ticket sales has an insurance policy against matches being called off. Cricket fans get all their money back if no ball is bowled, or if the game is abandoned after a small amount of play.
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