IPL Pays More for Insurance Cover

April 20 - One of India's most widely watched sporting events, the Indian Premier League, headed to South Africa this year under tough security, following fears that terror cells would plan another attack similar to the events in Mumbai earlier this year.

But physical security was not enough, and the IPL also needed to take out terror cover insurance on its many participants and organizers. As could be expected, the IPL is paying 40% more in premiums this year, than it did last year at the inaugural event.

The rise in premiums will be used to secure the tournament, which kicked off in Cape Town on April 18th, from attacks.

The Board of Control for Cricket India partnered with the IPL to purchase terror cover insurance worth Rs 240 crore, in accordance with the sponsorship deal that they have with Sony.

In addition, Sony took out separate coverage for its broadcasts.

The combined sponsors of the event took out insurance worth Rs 135 crore.

Oriental insurance confirmed this fact and a spokesman for the company said: "The Rs 135 crore worth of terrorism cover has been bought by the sponsors and reinsured from the overall pool. Therefore, the premium has increased by 40 to 50 percent. Now we are contemplating whether to reinsure the Rs 240 crore terrorism cover taken by the Board of Control for Cricket India/Indian Premier League to the terrorism pool, or reinsure it with foreign reinsurers."

The risk to Oriental Insurance will cease once the first ball in the first match is thrown.