The Hindu Business Line : Oriental Insurance to rework cover

Mumbai, March 22 With the Indian Premier League being shifted out of the Indian sub-continent, Oriental Insurance Company will now have to rework the cover it provides to the Twenty20 tournament.

The earlier cover was based on the fact that the matches would be played in India. “Now, with the matches being shifted to foreign venues, we will have to rework the cover,” said Mr M. Ramadoss, Chairman and Managing Director, Oriental Insurance Company.

The pricing of the policy cover has to be reworked in view of the changing scenario, Mr Ramadoss said.

Oriental Insurance provides a cover of around Rs 375 crore to IPL.

It provides a personal accident cover, which is inclusive of the terror cover.

The insurance company also provides a cover against total revenue loss.

Reinsurers view

The premium rates of the reworked insurance cover would also depend on the view taken by the reinsurers about the new venues.

“Since the rates in this category are mostly reinsurance driven, we will have to talk to reinsurers and see how the rates move,” he said.

Risk perception

Insurance industry experts feel that with the matches being shifted out of India, the risk perceptionwould reduce, thus decreasing the premium rates charged on the personal accident cover.

After the attack on Sri Lankan players in Pakistan, the risk attached to matches being played in the Indian sub-continent had increased considerably, leading to an increase in the premium rates on the terror cover provided to IPL.

Personal cover

With the matches being shifted out, the premium rates on the personal accident cover should go down, said Mr Rahul Aggarwal, CEO, Optima Insurance Brokers.

Countries such as England and South Africa would be considered safer by the reinsurers as well, Mr Aggarwal said.

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