Inzamam, one of the finest batsmen in world cricket, was awarded for his super run of form since the beginning of 2005.
"Inzamam has averaged an unbelievable 94 runs in Tests and over 50 runs in One-day internationals and magnificently captained the Pakistan side that beat India and England in the recent Test series," said a citation.
Over 800 dignitaries including Keith Vaz, former Minister for Foreign and Commonwealth Office, former Indian wicketkeeper batsman Farooq Engineer, and the channel's 'Indian Idol' winner Abhijeet Sawant attended the award ceremony held at the Hilton Hotel in Park Lane.
Former England cricket captain Nasser Hussein won the Lifetime Achievement Award.
"Obviously I am very thrilled to receive something like this after I have stopped playing cricket. It is a great honour," the Chennai-born told PTI on receiving the award.
Boxer Amir Khan, winner of a silver medal at the 2004 Athens Olympic Games at the age of 17, was declared Sports Personality of the Year.
Amir turned professional in 2005 and since then he has maintained an undefeated record in an explosive fashion with 4 wins in 4 fights and looks set to continue his historic rise to a boxing world title.