IPL 2020 able to secure sponsors but NOT insurance cover as COVID-19 threat looms on event

The ongoing COVID-19 pandemic has resulted in many industries being badly affected across the world and sports is no less. Top sporting events all over the world are facing the wrath of coronavirus. Though the upcoming IPL 2020 promises to bring a respite for cricket fans, it is bound to face several stumbling blocks too. With the BCCI not able to secure an insurance cover for the Indian T-20 extravaganza, the IPL 2020 could find itself in deep trouble. 

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The IPL 2020 is slated to commence from Saturday in the UAE. However, the BCCI could be in big trouble if the tournament needs to be called off because of the pandemic. The AVP of Howden Insurance Brokers, Karan Ruia, in his interaction with Insidesport, mentioned how the IPL 2020 will not be able to secure an insurance cover for COVID-19. 

IPL sponsors revealed but tournament organizers fail to secure insurance?

Ruia mentioned how each stakeholder, whether it is the BCCI, franchises or IPL sponsors, are looking to get insured against the virus. However, due to the pandemic being an ongoing event, no party can get insured for COVID-19. Speaking on BCCI's insurance cover for the IPL 2020, he stated how an event is insured fully, but a cover for COVID-19 is unlikely. IPL is insured against terrorism and climate adversities but as the pandemic was an unforeseen occurrence, there seems to be no provision for that. In the past, the IPL was said to be in a partnership with New India Assurance, the same company which had signed an insurance deal worth ₹2,500 crore with the tournament organisers back in 2018.

Impact of COVID-19 in IPL 2020

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The BCCI, with its stringent SOPs, is striving to ensure there is no lapse in the tournament. From the introduction of a Bio-Bubble to contact tracing devices, the board has left no stones unturned towards their preparations for IPL 2020. Franchises such as Mumbai Indians also are conducting regular tests for their players and support staff. It was earlier reported that Mumbai Indians contingent will go through 21-24 tests through the course of the IPL 2020. CSK, Mumbai Indians' opponents for the first match of the IPL 2020, were made to sweat after Suresh Raina's exit from IPL 2020 after a major COVID-19 fiasco saw 13-14 of their contingent members testing positive, including Deepak Chahar and Ruturaj Gaekwad.

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Sleepless nights for IPL sponsors

Interestingly, tennis' iconic Wimbledon Championships 2020 tournament in London, too had to be called off due to the pandemic. However, the loss they incurred was negated by their insurance cover against pandemics. The organisers received $142 million due to the event's cancellation. The IPL 2020 does not have any such clause, which could give sleepless nights to the IPL sponsors, franchises and broadcasters.

IPL sponsors such as Dream11, Tata motors, PayTm, Cred, CEAT and UNACADEMY are bound to lose money if the event is called off due to coronavirus. Moreover, other IPL sponsors associated with franchises and broadcasters could also suffer due to a lack of an insurance cover against pandemics. 

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