The ICC Men's T20 World Cup began on 18th October, 2021 with much controversy.
Earlier, the tournament was set to be hosted by Australia in 2020. But, due to the COVID-19 pandemic, ICC had to postpone the event to 2021 making India the host. However, now the matches are being held in UAE and Oman.
And this isn’t the only challenge this tournament is facing.
Following multiple terrorist attacks on army personnel and civilians in Jammu and Kashmir in October 2021, Union Minister Giriraj Singh, among other prominent figures, called for the cancellation of the ICC T20 match between India and Pakistan to be held on October 24th. Singh observed that the relations between the two countries are ‘not good’ and so, the upcoming matches should be reconsidered.
Although the match went ahead as planned, another cancellation like this could pose huge losses for ICC- which had already booked stadiums, hired numerous personnel and sold tickets.
So how can ICC protect itself from such losses?
Well, major event organizers usually opt for what is known as Event Cancellation Insurance.
Event Cancellation Insurance is designed to reimburse event organizers for the cancellation, interruption or postponement of an insured event due to unexpected circumstances. This policy can be taken to cover events like sports tournaments, weddings, conferences, film festivals, corporate events, etc.
Increasingly, insurers are excluding pandemic coverage from event cancellation insurance considering the situation since 2020. This means, new policies will not cover cancellation due to COVID-19 reasons. However, cancellation due to other reasons such as political issues, natural calamities, and acts of terrorism are still covered under relevant clauses within the policy.
Event Cancellation Insurance has become a necessity in these uncertain times.
The pandemic led to the cancelation of many events including the Olympics. Read about the Tokyo 2020 Olynpics here