Record Insurance Cover for IPL Telecast

Strategic Insights -

The state-owned National Insurance Co. Ltd has agreed to provide a record `900 crore cover against any loss of advertisement revenue to Multi Screen Media Pvt. Ltd for the telecast of the Indian Premier League (IPL) cricket tournament on its Set Max and Sony Entertainment television channels. The IPL's fourth edition is set to get underway on Friday, with the tournament running from April 8 to May 28. This is the biggest cover obtained for the telecast of a cricket tournament anywhere, with each league match of the upcoming IPL having a cover of `12-15 crore. The broadcaster, Multi Screen Media, has also obtained a higher cover for this year's IPL due to the increase in the number of matches from 60 to 74.

Key Takeaways:

  • National Insurance Co. Ltd has provided a record `900 crore cover against any loss of advertisement revenue to Multi Screen Media Pvt. Ltd for the IPL's fourth edition.
  • The cover is the biggest obtained for the telecast of a cricket tournament anywhere, with each league match of the upcoming IPL having a cover of `12-15 crore.
  • The broadcaster, Multi Screen Media, has also obtained a higher cover for this year's IPL due to the increase in the number of matches from 60 to 74.
  • National Insurance has also agreed to compensate the broadcaster to the tune of `450 crore if it suffers any loss of revenue due to a terrorist attack.
  • Multi Screen Media obtained a higher cover for this year's IPL because the number of matches has gone up from 60 to 74, and also due to a 20% increase in advertisement tariffs.
  • The company tried to get other state-owned insurers to join forces with it but they refused in the end.
  • National Insurance chairman and managing director N.S.R. Chandraprasad stated that the risk wasn't high, with no claim at all in the last two seasons.

Statistics:

  • `900 crore cover provided by National Insurance Co. Ltd for the IPL's fourth edition.
  • `12-15 crore cover for each league match of the upcoming IPL.
  • `450 crore compensation for any loss of revenue due to a terrorist attack.
  • `10 crore premium charged by National Insurance Co. Ltd for the IPL's fourth edition.
  • 74 matches in the upcoming IPL, up from 60 last year.
  • 20% increase in advertisement tariffs.

Sources:

  • "900cr cover for IPL telecast" by Livemint, April 6
  • "McClatchy-Tribune Information Services"