India's Formula1 Grand Prix gets $100mn insurance cover

JPSI (Jaypee Sports International Ltd), the organiser and sponsorer of India's first Formula1 Grand Prix to be held at Buddh International Circuit in Greater Noida, has sought an insurance cover of $100mn (around Rs 490 cr) for the event.

The cover includes two policies:

1. $15mn event cancellation policy - covering for loss of revenue on account of cancellation of the event due to reasons beyond the control of the organisers. Expected to be underwritten by HDFC Ergo.
2. $85mn terrorism and third party liability cover - Apart from any terrorist activity, it covers third-party liability risks like personal accident covers for ground crews, instruments of the organisers and property damages. To be provided by Reliance General Insurance Company.

Approximately 70% of the risk has been reinsured to global reinsurance majors. The General Insurance Corporation of India (GIC Re) was ceded 10% of the risk. 20% of the risk to be retained by the insurers.

Total premiums expected to be in the region of Rs 7-10 crore

Event date: October 28-30, includes three practice & one qualifying sessions and final race
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