IPL washout spurs potential insurance claims of Rs 50-60 crore
Gujarat Titans versus Kolkata Knight Riders match on Monday due to rain has triggered expectations of revenue losses, prompting sponsors, franchise owners to consider filing claims with insurance providers.
This year the Indian Premier League (IPL) had bought insurance cover of Rs. 10,000 crore from insurers including New India Assurance, National Insurance Company, and United Insurance for the tournament.
This coverage protects against revenue losses arising from various contingencies, including match cancellations due to natural disasters, political events, riots, and more.
“Sponsors, broadcasters, team sponsors, and franchise owners are expected to file a claim the following day due to anticipated revenue losses,” said Pranav Shan, director, speciality lines, Alliance Insurance Brokers. “Although it's premature to estimate the exact loss caused by the washout, it could potentially range between Rs 50-60 crore.”
Several stakeholders are likely to assess their losses file claims tomorrow to reduce the financial impact. Gujarat Titans, as the home team scheduled to play at Narendra Modi Stadium, is expected to file a claim for revenue losses. Similarly, the visiting team, Kolkata Knight Riders (KKR), is also expected to file a claim.
The IPL's per match market value ranges from Rs. 100 crore to Rs. 125 crore.
However. the actual claims are expected to fall within the range of Rs. 50-60 crore due to varying revenue streams and unaffected areas like OTT platform subscriptions. As stakeholders assess their
