<p>Insurance broker Trinity Group, which has to arrange for insurance cover of the CWG, said that the reinsurer Llyod's Syndicate yesterday withdrew from covering any losses arising out of a terror attack during the Games.<br /><br />"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.<br /><br />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.<br /><br />The CWG Organising Committee had sought a hefty insurance cover of about Rs 750 crore in the event of cancellation of the sporting extravaganza.<br /><br />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.<br /><br />Of all the four PSU general insurers, Oriental Insurance Company was the lowest bidder for providing the insurance cover to the CWG.<br /><br />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.<br /><br />According to industry sources, increased uncertainty surrounding the CWG was the main reason for such a high insurance premium.<br /><br />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.<br /><br />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.<br /><br />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.<br /><br />The comprehensive cover is expected to insure about 9,000 people, including athletes, Games staff and officials.</p>
<p>Insurance broker Trinity Group, which has to arrange for insurance cover of the CWG, said that the reinsurer Llyod's Syndicate yesterday withdrew from covering any losses arising out of a terror attack during the Games.<br /><br />"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.<br /><br />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.<br /><br />The CWG Organising Committee had sought a hefty insurance cover of about Rs 750 crore in the event of cancellation of the sporting extravaganza.<br /><br />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.<br /><br />Of all the four PSU general insurers, Oriental Insurance Company was the lowest bidder for providing the insurance cover to the CWG.<br /><br />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.<br /><br />According to industry sources, increased uncertainty surrounding the CWG was the main reason for such a high insurance premium.<br /><br />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.<br /><br />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.<br /><br />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.<br /><br />The comprehensive cover is expected to insure about 9,000 people, including athletes, Games staff and officials.</p>