Business IdeasMumbai ODI washout hits Oriental Insurance
Cricket fans were not the only ones left disappointed by the cancellation of the India-Australia one-day international (ODI) match today that was to be played at the DY Patil Stadium in Navi Mumbai. Public sector insurer Oriental Insurance will have to pick up the tab for claims worth Rs 6.75 crore.
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While the Mumbai Cricket Association (MCA) had taken an insurance cover for Rs 6 crore against natural perils such as cyclone, lightening, death of a political leader, riots, airline strike, civil commotion etc, the Board of Control for Cricket in India (BCCI) had insured the advertisers and the broadcasters against cancellation due to such events for Rs 75 lakh. This would include the loss of revenue through ticket sales.
The claim comes against the cancellation of the match due to heavy rains. The premium paid for the cover, however, is not known, but it could be in the range of 0.5 per cent to 1 per cent of the sum assured.
A senior executive at Oriental Insurance declined to disclose the premium paid by both MCA and BCCI.
The cricket association had taken an additional cover against terror attacks, but since the match was not cancelled due to terrorist attack or fear of such activity, the insurer would not pay that amount.
Moreover, the risks were not reinsured in this case. The executive added that since the risk was low and within the limit of the insurance company, no reinsurer was roped in.
Oriental Insurance has been aggressively writing covers for cricket tournaments. Recently, it has covered all matches of the International Cricket Council’s T-20 World Cup. Of late, the public sector insurer had started covering broadcasters too. During the Champions Trophy, it had provided a cover of Rs 148 crore to ESPN India against revenue loss due to match cancellations.