The athletes representing India at the Paris Olympics 2024 started making their mark at the very beginning, with a couple of athletes bagging bronze medals. Sportspersons train their whole life to participate in major global events, winning accolades not just for themselves and their teams but also for their country. In fact, this is one of the most difficult careers, regardless of the level at which an athlete participates.Â
While we follow the progress of our nation on the Olympic medal tally, it is also important to remember that sports are associated with various risks, especially injuries. In fact, During the last Olympic Games, held in Tokyo in 2020, 9% of the athletes were injured. This followed the pattern seen in the previous Olympics, when 10% of athletes faced injuries in Beijing (2008), 11% in London (2012) and 8% in Rio de Janeiro (2016).
Unfortunately, injuries could not just derail the sportsperson’s ambitions and the nation’s hopes but also lead to a huge financial burden in terms of medical costs, loss of income and prolonged disability. This is why sports insurance is indispensable for every athlete.
Types of Insurance for Sporting Events
There are three main types of sports insurance usually underwritten by world-class sports event organisers:
Third-Party Liability: A major part of the Olympic Games' insurance budget is allocated to this cover and the Paris 2024 event is no different. This policy offers coverage for bodily injury, as well as material and/or immaterial damage to third parties. The Olympic Games attract huge crowds and require complex infrastructures, exposing the organisers, participants and spectators to numerous risks, including injury, natural disasters, stampedes, attacks, negligence, social unrest, etc.
Event Cancellation: This policy offers cover against total or partial cancellation of an event, which can occur due to unpredictable situations, such as an act of terrorism, civil unrest, natural disaster, etc. Event cancellation policies can also include ticketing insurance and the cost of TV rights. They might also reimburse for damage caused to sponsors of an event.
Insurance for Athletes: Under this policy, medical care and repatriation are covered for sportspersons in the event of an injury. Group insurance is also available for teams or all participants of a specific event to cover third-party liability. Professional athletes should also consider loss of income or disability coverage.
Why Sports Insurance is Necessary
Health insurance for athletes might not prevent mishaps, but it certainly allows sportspersons to focus on their game rather than worrying about the risks. In addition, InsurTech companies are helping gather data on athletes’ health, performance, injuries and recovery to deliver insights that can inform future risk prevention strategies.
Cost of Medical Treatment
Most sports test the human body to its limit. And when this is done repeatedly, injuries are only natural. They can occur while training or competing, and require effective treatment to restore function of the affected body part to the level required by the sportsperson. However, the cost of medical treatment is skyrocketing, which adds to the stress that the athlete is already going through. Health insurance for athletes and accident insurance for those participating in extreme sports are vital to support athletes to focus on their recovery rather than the medical bills.
A health insurance policy for athletes can take care of the costs for treatment, including hospitalisation, diagnostic tests, medication, surgeries, etc.
Income Protection
Most professional athletes depend on their chosen sport for their income. Unfortunately, a severe injury or disease could force the individual to retire. A sporting accident could lead to temporary or permanent disability, closing the doors to various other occupations for the athlete. With accident or disability insurance, regardless of whether the athlete competes in extreme sports, financial support is offered for the period when the sportsperson is unable to compete or earn money through their chosen sport.
Protection While Travelling for Sports Events
Sportspersons travel frequently to participate in sporting events in various national and international locations. Some might also need to travel regularly as part of their training. And we know that travelling comes with its share of risks. These could include baggage damage or loss, flight cancellation, a medical emergency while abroad, injury due to accidents, etc. Any one of these incidents could ruin the entire purpose of the trip. Therefore, travel insurance for athletes is just as important as health coverage. It will compensate the sportsperson for expenses related to loss or damage to property, medical costs, cancellations and third-party accidents.
Protection While Not Competing in a Sport
Everyday life is just as unpredictable as participating in a sport. Injuries and illnesses can occur outside the stadium just as frequently. And, just like sports injuries, these incidents can prove to be hurdles to participating in sporting events and entail expensive treatment and long recovery times. So, while health insurance can cover medical expenses for athletes, a personal accident policy could take care of non-sports-related injuries.
Equipment Protection
Some sports require athletes to use expensive equipment or gear. These could include customised cycles, shoes, rackets, safety pads and helmets, and more. Loss or damage to sporting gear could, therefore, prove expensive to replace or repair. Fortunately, there are insurance policies that cover sporting equipment and gear, offering financial support so that the athlete can return to their game as soon as possible.
Additional Benefits of Sports Insurance
The Paris Olympics 2024 is a good starting point to focus on the advantages of protecting athletes with the right insurance coverage. In fact, such policies could bolster sportspersons’ wealth management strategies by offering financial support during times of need so that athletes don’t need to dip into their savings. Wealth accumulation is important because a career in sports tends to be short-lived, with athletes retiring much before they hit 40. Their career could be further cut short by an unexpected injury or illness that leads to permanent disability.
The good news is that sports insurance policies tend to be flexible, allowing athletes, event organisers, sporting clubs, etc., to tailor the coverage based on the specific sport. For instance, a boxer might consider coverage for hearing loss, which could occur due to repeated injuries to the head or ears.
Plus, most insurance policies in India offer tax benefits under Sections 80C and 10(10D) of the Income Tax Act. Sports organisations, facility owners and teams can also protect themselves against liability and safeguard their assets (such as sporting equipment) with sports insurance.
How India is Supporting Its Athletes with Insurance?
The Rajasthan government has proposed a draft sports policy in July 2024, which is intended to replace the 2013 Sports Policy and include health insurance of up to â‚ą10 lakhs for international athletes and up to â‚ą5 lakhs for national sportspersons from the state. The new policy, to be finalised shortly, will also include pensions for athletes, para-athletes and coaches, especially those who are not employed in any government job or receiving any other government pension.
The 2024 sports policy aims to identify “priority sports” based on the level of participation, past performance and “raw talent in both Olympics and non-Olympics sports.” Through this identification process, sports will be categorised as Priority I, Priority II and Priority III.
Health insurance for athletes under this scheme will include basic medical cover, sports-specific cover, physical therapy and rehabilitation, and cover for pre-existing injuries and medical conditions that have developed during the sporting career.
The Sports Authority of India is also doing its bit to give athletes peace of mind. In May 2024, it announced the extension of health and accident insurance to over 13,000 Indian sportspersons, coaches and support staff. This is in line with the decision of the Ministry of Youth Affairs and Sports to promote the safety and well-being of Indian athletes and support staff.
Given that India is a sports-loving country, insurance providers can look to expand their revenue sources by offering health, disability and accident insurance, among others, for athletes, including those who participate in extreme sports. InsurTech companies in India play a key role in helping insurers understand market demands, tailor policies for specific sports, ease underwriting and minimise the costs associated with personalising offerings.
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