IPL'S 10,000 CRORE INSURANCE COVER REACHES RECORD HIGH

Cricket is more than just a sport in India; it is a religion. The Indian Premier League (IPL) is the country's flagship cricketing event, introduced by the BCCI in 2008 and held annually. Since then, income from the T20 format has grown by 6.5 times, and revenue from sponsors, broadcasters, franchises, stadiums, brand sponsorships, and advertising alone has increased to Rs. 15,766 crores, which is more than triple what it fetched in 2018. It is even the second most valuable athletic event, just after the NFL. The 16th edition of the IPL is currently underway.

The IPL is a fast-paced and high-scoring contest where the team emerges victorious in the closing moments, with lots of cash prizes at stake. However, behind the curtain of the vibrant and buzzing crowds, there is an unseen savior: insurance. The New India Assurance Company Ltd and National Insurance Company share the largest part of the ₹10,000-crore insurance cover for one of the wealthiest cricket events.

Broadcasters take the most expensive insurance shield, followed by team owners against player fees. However, this is not new. In 2023, the sum insured was ₹10,000 crores, and it was ₹5,000 crore in 2022 and ₹4,000 crore before that. This ₹10,000 crore figure highlights the growing financial stakes in the game.

The schedule for all matches was not announced until 25th March 2024 due to the Lok Sabha elections clash of dates set between April 19th and June 1st. This poses a hazard of cancellations or delays, which the stakeholders fear. Therefore, opting for such a high amount of insurance coverage is necessary to ensure uninterrupted matches. With such threats to stakeholders, prices for such insurance policies have increased by 30-35% this year.

Therefore, we must note that behind all the entertainment of sixes, fours, wickets, etc., there is a robust insurance cover that ensures that the show continues, no matter what comes in the way, and the IPL remains one of the top leagues.

Thank you.

Regards,

Abhishek Singh,

Kautilya, IBS Mumbai.