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Faulty insurance deal behind PCB’s whopping financial loss

Lahore, May 23 (ANI): A four year audit report of the Pakistan Cricket Board’s financial accounts has revealed that the board has suffered a whopping financial loss of about 43,036,361 rupees because of its laid back attitude in arranging the insurance cover for the cancelled home series against Australia in 2008.

The audit was completed two months ago, but neither the government nor the PCB has made the report public, The Dawn reports.
According to the report, the PCB suffered a massive loss of 26,542,942 rupees in contingency insurance and a further loss of 16,493,419 rupees over the terrorism clause.

Australia was scheduled to visit Pakistan to play three Tests and five One Day International matches besides a Twenty20 game, but Cricket Australia (CA) cancelled the tour citing precarious security conditions.

Later, Oz agreed to play Pakistan at a neutral venue, and a five match ODI series was recently concluded in the UAE.

The reports also stated that the then PCB management, headed by Dr Nasim Ashraf,  had paid 500,000 rupees  to a legal firm for seeking  its opinion regarding the insurance cover for the cancelled series.

Interestingly, the law firm had concluded that the cancellation of the ‘insured’ tour had taken place because of a threat of terrorism, and hence the insurance policy well covered the losses suffered by PCB.

“The PCB was put through the loss due to an imprudent decision. Had the insurance policy been made effective from the date of the start of each series, the loss could have been avoided,” the report said. (ANI)

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