ACTUALITE |
07.11.2001
FIFA signs new insurance contract
World governing body FIFA has sealed a new insurance deal for next year`s World Cup finals, after main insurers AXA cancelled its existing policy following the September 11 attacks on the United States.
FIFA said its new `cancellation insurance` contract with the National Indemnity Company, owned by the Berkshire Hathaway Insurance Group of the United States, was for a policy which could not be terminated by the insurer.
The governing body also said it had started legal action against AXA, who asked for their £580m deal to be renegotiated due to increased risk following September`s attacks and the subsequent U.S.-led strikes on Afghanistan.
`The completion of a new cancellation insurance deal was necessitated when FIFA`s previous insurer AXA gave notice that it would withdraw its cover on November 11, although FIFA claimed there were no valid grounds for this move,` FIFA said in a statement.
AXA declined to comment on Monday. The French insurers said earlier this month they had expected to reach a new agreement on cover for the finals, which take place in Japan and South Korea in May and June next year.
`I`m delighted that in just a few days FIFA has managed to seal a new contract and that we can count on a strong insurance partner in an emergency,` said FIFA President Sepp Blatter in a statement on Monday.
Several sporting events have been hit by security concerns since the attacks. Economic uncertainty has also squeezed sponsors. The total cost to the world insurance industry for the attacks has been estimated at more than £20m. AXA itself has so far put its exposure to related claims at £370m.
|
|
Hits: 1 | Source:iccnet | |
|
|
|
|
| |