Reminds me of what happened to Varun Chakravarthy in IPL 2019. Kings XI Punjab picked him for a massive $1.17 million, and he played just one match in IPL 2019 (in which Sunil Narine scored a massive 25 runs of his first over). He didn't played the rest of the matches due to an injury. But since he played that match against the KKR, he received the entire contract amount ($1.17 million). This year also he was quite lucky. KKR picked him for $560,000 million. Sometimes the player auction in IPL can be very difficult to comprehend.
I have not seen the contracts, what if a player is purchased for a huge amount and they were unable to play the season because of injury, will they be getting paid, i doubt that will happen, but if a player is selected and if they are not selected for a match then that is not the issue of the player and hence he will be eligible to get the entire payment. If the kids are getting paid, it is good for them as it is a small window to make money with sport.
Someone please correct me if I am wrong. As far as I know, all of the players contracted to various IPL franchises are insured for the season. In case they miss out due to injury, then their insurance is going to cover that. So even if an IPL player doesn't play a single game due to injury, he will be receiving the entire amount from the insurance company. For example, Mitchell Starc missed IPL 2019 due to fracture of his right tibial bone. Kolkata Knight Riders cancelled his $1.8 million contract, but he received a compensation of $1.53 million from the insurance provider (Starc had paid a premium of $97,920 for the insurance coverage).