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Wednesday, March 4, 2020

Chungha Cancels Concert in Indonesia; How the Event Cancellation Policy Works

Chungha Cancels Concert in Indonesia; How the Event Cancellation Policy Works

Associated with the spread of the coronavirus that struck various countries in the world including South Korea, Chunga, female singer has stated to cancel his concert in Indonesia.

She cancelled plans for a concert planned to be held on March 7, 2020, at JIExpo Kemayoran, Jakarta. The reason is that 2 (two) staff members are exposed to coronavirus. In the Twitter account, @ 88rising which is the organizer of the concert said "Head in the Clouds Festival Jakarta is postponed. Information regarding rescheduling and refunds will be announced. We love you Jakarta and will see you soon."
Chungha

Event Cancellation Insurance

This insurance product may still be rarely known because it is only specialized or targeted at certain events or activities and not annual policies such as personal lines policies.

In Indonesia, not many insurance companies are known to provide this product except only a few. One of them is PT Chubb General Insurance Indonesia which is part of Chubb's global network in Asia Pacific region.

With long experience in insurance within the global scope, they have a special production i.e. Event Cancellation Insurance which basically covers a wide range of situations that can lead to potential losses due to event cancellation.

An Event Cancellation policy itself can be provided as a tailored scheme to suit the needs of customers that makes this product is unique. However, most of the Event Cancellation policies will feature the following perils:

  • any cancellation, abandonment, interrupting or postponement of an insured event for any reasons beyond the control of the event organizer companies.
  • any additional costs or expenses which provide to reduce any further loss
  • can be extended to include gross revenue
  • can be extended to include any adverse weather conditions, terrorism, non-appearance or other perils that may have a unique effect on the event

In the factsheet found on their web, they disclose in the loss scenarios that every day, hundreds of organizations in Asia rely on having the right conditions, facilities and services to ensure the successful undertaking of an event that has been months in the planning.

Consider the following loss scenarios and then ask yourself whether you have adequate insurance in place:

  • a heavy downpour causes flash flooding prior to a play artiste going onstage at a music event resulting in the event being abandoned.
  • a symphony orchestra's performance was delayed by 2 (two) hours due to transit delays.
  • a major international artiste had to cancel a show on their tour after storms in the area knocked out power at the concert venue.

Coronavirus and The Impact to Event Cancellation Insurance Policy

Event Cancellation Insurance will provide coverage due to perils beyond the control of the event organizer companies as the insured. In the many policy words and as one of the insurance practices, there are precaution conditions imposed to the insured in mitigating loss by reasonable steps such as rescheduling an event to the next time and different locations.

Coronavirus is already impacting schedule events arranged by event organizers like Chunga. While the terms and conditions of each policy may vary, as stated above, an event cancellation policy only provides coverage due to perils "beyond the control of the insured." And as fact that the postponement of the Chunga concert was not beyond the control of the event organizer so the event cancellation policy might not cover this case. And a typical Event Cancellation policy excludes "Communicable Disease" i.e. a loss caused or arises out of fear of any world pandemic determined by the WHO (World Health Organization).

To make an exact conclusion on the coronavirus case to the insurance policy liability, the insurers, insureds, brokers, and societies must read and analyze insurance policies wording as soon as possible.

Chungha

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