CWG yet to get terror cover for athletes,officials

“The reinsurer withdrew the terror cover to the Games.

Right now there is no event-cancellation cover due to natural calamity,as we will have to renegotiate terms with the reinsurer to work out a new policy,” Trinity Group Vice Chairman Akhilesh Jain said.

The withdrawal came a day after terror strike on Taiwanese media person near Jama Masjid. Terror groups claiming to be behind the attack have also threatened to disrupt the Games.

The CWG Organising Committee had sought a hefty insurance cover of about Rs 750 crore in the event of cancellation of the sporting extravaganza.

The insurance cover would have compensated for any loss arising from cancellation due to a natural calamity,like earthquake,floods or riot,and terror attacks.

Of all the four PSU general insurers,Oriental Insurance Company was the lowest bidder for providing the insurance cover to the CWG.

An event of such a magnitude requires a reinsurance firm to support the insurance company. The CWG organising committee was to pay a premium of Rs 26 crore for the insurance cover,which is much higher than the amount that was charged for many other mega sporting events in the country.

According to industry sources,increased uncertainty surrounding the CWG was the main reason for such a high insurance premium.

The premium cover of Rs 26 crore,which was to be paid by the OC of the CWG was higher than other games as there was a lot of uncertainty surrounding the event.

The Board of Control of Cricket in India had paid a premium of over Rs 1 crore to get a cancellation cover of Rs 250 crore for Champion’s League T 20 tournament. Also for Indian Premier League 3,the board paid about Rs 4 crore for a sum assured of Rs 480 crore.

This cancellation cover is apart from the Rs 500 crore insurance cover already finalised by the OC for athletes,CWG staff and technical officials,spectators and volunteers during the Games.

The comprehensive cover is expected to insure about 9,000 people,including athletes,Games staff and officials.

However,the insurance package does not cover venues or stadia as government buildings cannot be insured.

There are different categories in the insurance package including sickness cover,personal accident and any eventuality involving spectators and volunteers.

While in the personal accident category,Rs 25 lakh is earmarked for athletes and accompanying officials,for sickness cover the amount ranges between Rs 2 lakh and Rs 10 lakh depending upon the individual level.

Similarly,the insurance cover for spectators and volunteers during the Games is Rs 1 lakh each.