Business Daily from THE HINDU group of publications
Monday, Aug 14, 2006
Business Daily from THE HINDU group of publications Monday, Aug 14, 2006 |
|
|
|
|
|
|
|
|
Home Page
-
Sports Industry & Economy - Climate & Weather Money & Banking - General Insurance Sahara seeks insurance cover against match cancellation Radhika Menon
Under cover Sahara is seeking a cover of Rs 2.1 crore-2.6 crore. The number of events being insured against cancellation has witnessed a spurt in the past one year. Oriental Insurance Company insures 20 cricket matches in 2005-06, up from 10 in the previous year.
Mumbai , Aug. 13 The overcast sky in Sri Lanka has prompted Sahara, the sponsor of the Indian cricket team, to scurry for cover. The threat of rains washing out the Unitech tri-series being played between India, Sri Lanka and South Africa from August 14 to 29 has pushed the Indian team sponsor to seek proposals for insurance against event cancellation. According to insurance industry analysts, this is the first time that the sponsor of the team is seeking insurance, as usually it is the organiser that buys insurance to refund advertisers and ticket money in case of cancellation. Since Sri Lanka is the host and organiser, Sahara is looking for cover that will reimburse the organising expenses it will have to pay the Board of Control of Cricket in India (BCCI) if a match is washed out.
Playing it safe
Sahara is seeking a cover of Rs 2.1 crore-2.6 crore, which will take care of the expenses incurred by the organiser. "This highly restricted cover will come into effect only if not a single ball is played during the entire match. Even if just one ball is bowled, then we don't have to come into the picture," said Dr V.N. Bhargava, Assistant General Manager, Oriental Insurance Company, one of the companies that has submitted the proposal to Sahara. The number of events, including cricket matches being insured against cancellation has witnessed a spurt in the past one year. Oriental Insurance Company, which is the leading insurer of cricket matches, has seen its business double. Dr Bhargava said that the company had insured 20 cricket matches in 2005-06, a jump from the previous year's 10.
Jump in contracts
Bajaj Allianz General Insurance, another company that provides event insurance, has issued 20 contracts in the first four months of this fiscal, compared to the 25 contracts during the whole of last fiscal. "A number of the local cricket boards are now opting for covers against event cancellation due to rain or riots. Even broadcasters are buying insurance to reimburse advertisers in case a cricket match is cancelled," said Mr Krishnamoorthi Rao, Head-Underwriting, Bajaj Allianz General Insurance.
Related Stories: More Stories on : Sports | Climate & Weather | General Insurance | Radio/TV
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
