The Growing Need For Sports Insurance In India

With the attention that sporting events garner, it is not unusual that corporates and broadcasters all over the world pour a great deal of funding into them. The contingencies attached to these associations are also becoming known with the recent Covid – IPL scenario. The commercial aspect of unknown factors related to sports involves high adverse economic value, which may be shielded by way of insurance.

In India, sports Insurance is still at a nascent stage, and sports associations are yet to understand its significance. While insurance is mostly understood and connected with individual insurance, which covers health, life and motor; commercial insurance is usually related to the corporate sector. There are also other forms of insurance which gain significant market shares due to market opportunities, and the growing need for the same. However, there is under-penetration of insurance in these segments as well, primarily due to lack of awareness amongst stakeholders. 

Sports have always been associated with high energy and adrenaline. They are also a vibrant and emerging investment avenue, and the sentiment towards sports-entertainment has always been on a rise in India. This segment of insurance is as significant as any other in the country, as it covers loss of income to players, injuries, loss of property and the like. 

There are different kinds of sports insurance in the country:

Comprehensive Sports Insurance Cover: All uncertainties in the sector, natural or manmade such as unruly fans or the prevalent political climate, can be covered by way of a Comprehensive Sports Insurance Cover. Broadcasters can also benefit from well-designed, structured insurance solutions, depending upon the exposure of associated entities. For example, cricket matches under the BCCI can be insured, thus protecting the matches/ series. 

Event Cancellation Insurance: Any economic strain due to unforeseen events can cause major losses to sports organisers, event organisers and sporting entities. Television broadcasters too have huge ad revenues at stake, which may be disturbed by interruptions in the telecast of a live game. The Event Cancellation Insurance helps in mitigating the risks of sudden termination of events, which is beyond the control of organisers. 

Player Bonus/Prize Indemnity: Achieving a particular level in the game and the pre-decided prior to the commencement of the game can be covered under Player Bonus Insurance. This can be well used as a promotional activity with sports events, with a motivational element attached to it.

Player loss of Fees Insurance: In case of any sport, if the player suffers an injury and is unable to play, financial losses or contractual fees are taken care of. It looks after medical expenses and treatment charges for the player. 

Although the concept of sports insurance is still new, India is a highly sports-enthusiastic country. With cricket being a national favourite, India has seen a growing appreciation for sports like football, hockey, kabaddi etc. With the series of Leagues introduced, multiple sports have witnessed a trajectory of growth. India represents multiple sports on global platforms, and hence insuring will only benefit the sports associations, players and coaches in the long run.

The author is Co- Founder and Director at Alliance Insurance Brokers

DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.