Tournaments and insurance - The misconception
“It will never have happened if it hadn’t happened before” – Author. Yet again, Ghana is not only participating in the African Cup of Nations (AFCON2017) tournament in Gabon after a 35-year drought, but she is also advancing into the next stage of the competition.
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Until last two Fridays when Ghanaians started showing signs of ‘involvement’ following the victory over Mali, many a Ghanaian posited that the spirit of the nation had distanced itself from the team, especially after the World Cup (Brazil 2014 fiasco) and the 2015 AFCON.
Quite unusual, even corporate Ghana does not seem to be forthcoming with the requisite sponsorship arrangements similar to what the case was during AFCON 2015.
I often try hard not to remember how AFCON 2015 had been described by pundits as a replica of Senegal ‘92, where the Stars unfortunately lost out on penalties after a grueling 120 minutes of open play against none but the same country – Cote d’Ivoire. Though the Stars played their hearts out and successfully redeemed their dented image, with luck simply eluding them in AFCON 2015, many Ghanaians are still struggling ‘to love again’.
Insurance sponsorship packages not life time insurance
Sponsorship by corporate Ghana has become a critical part of corporate social responsibility objectives, especially for sporting events such as football, hockey, athletics, etc. Organisations seek to gain extra mileage by associating themselves and their products with various sporting events. However, the nature of these sponsorships is very often determined by the nature and peculiarity of the sponsoring organisations. The focus of insurance companies, for instance, may be on how to mitigate the risks associated with the particular sport.
Whereas it is rare to record deaths on a sporting arena such as that involving a former Camerounian International, Vivienne Foe, player injury is quite a common phenomenon and largely seen as ‘part of the game’. Indeed, sports such as hockey, boxing and football are often associated with high risk of injuries as the nature of playing these games is sometimes rough.
A promise, not cash
A few years ago, I had the privilege of representing my employer at a ceremony where a sponsorship package was offered the National Hockey Team, the Black Sticks as they prepared towards an encounter with their Nigerian counterparts in a friendly to mark the passing of the late President, Prof. John Evans Atta Mills. It is a widely known fact that our late President was a great hockey player himself, especially in his youthful days.
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The confusion
Thought the media was well represented and lauded the company for being socially responsible, it was interesting to note that many of them were curious to know how much each player was going to receive from the package as they put it ‘bonus’.
Though difficult, I managed to explain to them that the package did not involve direct cash, but a PROMISE that in the event of any injury or death on the field of play, an agreed amount was going to be paid as compensation to the affected player(s). In fact, I even had to explain that in the highly unlikely event of death involving all the team members and officials in the course of play, the full package was going to be paid to compensate the families of all the affected persons; the sponsored contract, therefore, ends there!
The true picture
The true picture of insurance sponsorships is that the team did not have to pay any premiums to have these benefits. Thus, the state would be saved or waived of some of the costs that would otherwise have been incurred in arranging an insurance policy for the team.
This type of sponsorship, which neither involves cash nor products for distribution, mainly promises compensations in the event of a specified uncertainty such as injury or death. In some instances, this could also be complemented by a direct product or cash sponsorship as an insurance company did for the Black Stars in the ongoing AFCON 2017.
How claims paid are reported on
In every sports tournament, apart from injuries, there is the uncertainty of risks.
For instance, there are risks of illness and accident or injury which may require hospitalisation or air evacuation to another country for treatment. However, media reports often assume (and report same) that the cost of treating an injured player is always borne by the state or the player’s club.
It is important to note that if there is an insurance policy for the team, the cost of medical treatment is directly borne by the insurance company. In the same way, where an insurance package is offered as sponsorship, the cost of treating injuries and compensation for death is paid by the sponsor per the policy terms and conditions.
What forms of insurance must be considered
Participating in tournaments can be a daunting task as teams spend colossal amounts of money in preparation towards them, bearing in mind the associated risks.
In the wake of the Ebola scare, for instance which led to Equatorial Guinea replacing Morocco as host of AFCON 2015, participating countries were quite mindful about their teams and supporters contracting the deadly disease; hence put in place appropriate measures.
It was ,therefore, refreshing to note that no incident of the disease was reported during and after the tournament.
Beyond physical and mental preparations, it is imperative for teams engaging in sports tournaments to also prepare for uncertainties in relation to team injuries or even deaths. In this regard, insurance policy for personal accidents, injury, medical costs and deaths are necessary.
The way forward
It is important for insurance companies that offer insurance sponsorships to various sporting disciplines during tournaments to also show interest when it becomes necessary to pay compensations to team members in lieu of medical treatments or death.
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Such events need to be made public in order that the benefits of the sponsorship packages would be adequately manifested. Besides the publicity stunts, these events would also inspire public confidence in what insurance can do for them.
Moreover, individual sportspersons may also take out insurance policies for themselves in relation to medical expenses, liabilities and accidental damage during the period of the tournament. Similarly, there are varieties of insurance policies available for sportspersons and officials including investment products toward their typically early retirements!
The ‘Life after football and Insurance Scheme’ launched some time last year by the Professional Footballers Association of Ghana in an attempt to change the trend especially for those who end up with nothing is a step in the right direction and should make every sports person excited and interested in getting indemnity in the event of an injury and at retirement.
Until next week, “This is insurance from the eyes of my mind”.
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