final copy of art insurance.(5)

8/12/2019 Final Copy of Art Insurance.(5)

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ART INSURANCE

Sr. No Content PageNo.

1 Overview of Insurance 2-12

2 Introduction to Art Insurance 1-1!

"a#uation of Art 1$-2%

& Procedure for c#ai'ing insurance (o#ic) 2!-*

+ T)(e of art , insurance co'(aniescovering wit te art insurance

1-2

% "arious arts insured wor#dwide- i'ages/ -%

! Art insurance in India !

$ 1* ste(s to 0now aout te art insurance. $-&1

3uture of art insurance &2-&

1* Surve) &&-&$

11 Case stud) on insurance co'(an)(roviding Art insurance

&-+2

12 Conc#usion +&

1 4i#ogra() ++

1


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ART INSURANCE

-

5Art is a tecni6ue of co''unication7and te i'age is te 'ost co'(#etetecni6ue of a## co''unication.8

INTRODUCTION:

Insurance is an arrange'ent were te #osses e9(erienced ) a few

are e9tended over severa# wo are e9(osed to si'i#ar ris0s. Insurance is a

2


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ART INSURANCE

(rotection against financia# #oss arising on te a((ening of an une9(ected event.

Insurance co'(anies co##ect (re'iu' to (rovide securit) for te (ur(ose. As

#oss is (aid out of te (re'iu' co##ected fro' te insuring (u#ic and te

insurance co'(anies act as trustees to te a'ount so co##ected.

Insurance is a too# ) wic fata#ities of a s'a## nu'er are

co'(ensated out of funds (re'iu' (a)'ent/ co##ected fro' (#enteous.

Insurance co'(anies (a) ac0 for financia# #osses arising out of occurrence of

insured events: e.g. in (ersona# accident (o#ic) deat due to accident: in fire

(o#ic) te insured events are fire and oter a##ied (eri#s #i0e riot and stri0e:

e9(#osion: etc. ;ence: insurance is safeguard against uncertainties. It (rovides

financia# reco'(ense for #osses suffered due to incident of unantici(ated events:

insured witin (o#ic) of insurance.

EVOLUTION OF INSURANCE:

reece.

Te ear#iest transaction of insurance as (racticed toda) can e

traced ac0 to te 1&tcentur) A.?. in Ita#) wen si(s were on#) eing covered.


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ART INSURANCE

Tis (ractice of


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NATURE OF INSURANCE:

On te asis of te definition of insurance: one can oserve its

fo##owing caracteristics

1. RISF S;ARIN> AN? RISF TRANS3ER

Insurance is a 'ecanis' ada(ted to sare te financia# #oses tat

'igt occur to an individua# or is fa'i#) on te a((ening of a s(ecified event.

2. CO-OPERATI"E ?E"ICE

Insurance is a coo(erative device under wic a grou( of (ersons

wo agree to sare te financia# #oss 'a) e rougt togeter vo#untari#) or

toug (u#icit) or troug so#icitations of te agents. An insurer wou#d e

una#e to co'(ensate a## te #osses fro' is own ca(ita#. So: ) insuring a

#arge nu'er of (ersons: e is a#e to (a) te a'ount of #oss. @i0e a## co-

o(erative devices: tere is no co'(u#sion ere on an)od) to (urcase te

insurance (o#ic).

. RISF ASSESS


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ART INSURANCE

Te co'(ensation is 'ade at a certain contingenc) insured. If te

contingenc) occurs: (a)'ent is 'ade. Since te #ife insurance contract is a

contract of certaint): ecause te contingenc): te deat or te e9(ir) of ter': wi##

certain#) occur: te (a)'ent is certain.

+. AE NU


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FUNDAMENTAL PRINCIPLES OF INSURANCE:

!


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FUNCTIONS OF INSURANCE:

UtmostUtmost

Good FaithGood Faith

Principle ofPrinciple of

CausaCausa

ProximaProxima


LossLoss

MinimizationMinimization


SubrogationSubrogation


ContributionContribution

PrinciplePrinciple

ofof

IndemnityIndemnity

InsurableInsurableInterestInterest

PrinciplePrinciple

ofof

InsuranceInsurance

$


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ART INSURANCE

Insurance (rovides insurance (o#icies: wic are #ega##)

inding contracts for wic te (o#ic)-o#der (a)s insurance (re'iu'. 4ased

u(on tis: te functions of insurance 'a) e discussed as fo##ows

1. CERTAINTG

Insurance (rovides certaint) of (a)'ent for te ris0 of #oss. Tere are

different t)(es of uncertaint) in a ris0. Te ris0 wi## occur or not: wen wi##

occur: ow 'uc #oss wi## e tereH In oter words: tere are uncertaint) of

a((ening of ti'e and a'ount of #oss. Insurance re'oves a## tese

uncertaint) and te assured is given certaint) of (a)'ent of #oss. Te insurer

carges (re'iu' for (roviding te said certaint).

2. PROTECTION

Te 'ain function of te insurance is to (rovide (rotection against te

(roa#e cances of #oss. Te insurance guarantees te (a)'ent of #oss and tus

(rotects te assured fro' sufferings. Te insurance cannot cec0 te a((ening

of te event ut can co'(ensate for #osses arising at te a((ening of te ris0

event.

. RISF S;ARIN>

Ben ris0 ta0es (#ace: te #oss is sared ) a## te (ersons wo aree9(osed to te ris0. Te sare is otained fro' eac and ever) insured in te

sa(e of (re'iu' witout wic te insurer does not guarantee (rotection.

&. ASSISTS IN CAPITA@ 3OR


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ART INSURANCE

Te insurance (rovides ca(ita# to te societ). Te accu'u#ated

funds are invested in (roductive canne#. Te scarcit) of ca(ita# of te societ) is

'ini'i=ed to a greater e9tent wit te e#( of invest'ent of insurance.

+. PRE"ENTION O3 @OSS

Te insurance co'(anies assist financia##) to te ea#t

organi=ation: fire rigade: educationa# institutions and oter organi=ation: wic

are engaged in (reventing te #osses of te 'asses fro' deat or da'age. Te

insurance Doins ands wit tese institutions in (reventing te #osses of te

societ) ecause te reduction in #oss causes #esser (a)'ent to te assured and so

'ore saving is (ossi#e wic wi## assist in reducing te (re'iu'. @esser

(re'iu' invites 'ore usiness and 'ore usiness cause #esser sare to te

assured.

1*


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ART INSURANCE

CLASSIFICATION OF INSURANCE:

11

Classification ofInsurance

Life Insurance Fire InsuranceMiscellaneous

Insurance

Motor

Insurance

Accient

Insurance

Dut!Insurance

Erection AllRis"s Insurance

Contractor#s All

Ris"Insurance

Mac$iner!

%rea"o&n

Insurance

Prouct Lia'ilit!

Insurance

Refri(eration

Plant Insurance

Mac$iner! Loss

of Profits Polic!

Cas$

Insurance

%usiness Pre)ises

%ur(lar! Insurance

Office Protection

Insurance

S$o*"ee*er#s

Insurance Polic!

Personal Pac"a(e

Insurance Polic! for

%usiness)en

Rural

Insurance

+ouse +oler#s

InsurancePolic!

Do)estic Tra,elInsurance

Ra-es$&ari Ma$ila

.al!an %i)a /o-na

S*ecial

Contin(enc! Polic!Art insurance

A)art!a Si"s$a

/o-na Insurance

Polic!

En(ineerin(

Insurance

Social InsuranceMarine Insurance


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ART INSURANCE

0Criticis) is eas!1 art is ifficult23

12


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ART INSURANCE

ART INSURANCE

INTRODUCTION:

. Bat is ArtH

It is not on#) e9(ensive (aintings it a#so inc#udes te fondness and

#ove for

Scu#(tures

"isua# Arts J cera'ics: 'ura#s: wor0s on (a(er

Anti6ues: Co##ecti#es Jrare sta'(s

"intage veic#es

It cou#d e an oDect suDect to va#ue a((reciation

due to age: descri(tion: istor) and rarit).

Insurance of art is ased on a va#uation tatKs acce(ta#e to ot

te insurer as we## as te insurance co'(an). As art eco'es 'ore and

'ore va#ua#e: art insurance is aso#ute#) essentia#. "a#uation of (aintings is

ased on 'ar0et feedac0 and individua# co##ectors can avai# of te (o#ic)

as we##. Tis is a new 'ar0et and so initia##): art insurance is ver)

e9(ensive. 4ut as 'ore and 'ore (eo(#e are #oo0ing at art as an invest'ent:

insuring oneKs co##ection is definite#) in order.

1


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ART INSURANCE

NEED OF ART INSURANCE:

T$e Screa)

LTe Screa'L and L


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ART INSURANCE

and (rivate co##ections. Beter or not a wor0 of art is Lre(#acea#eL is not te

issue. Te issue is getting co'(ensated if te art is sto#en. BatKs etter-- a

sto#en (ainting and a + 'i##ion insurance sett#e'ent or a sto#en (ainting and a

* insurance sett#e'entH

Bor#d over invest'ents in fine arts as grown over )

++ annua##). Te (ossession of 3ine Arts is a s)'o# of confidence: wea#t:

i'age and status. 4esides nowada)s increasing terrorist activities are da'aging

'an) va#ua#e , anti6ue co##ections. So for (rotection against te #ossincurring fro' suc activities insurance are re6uired.

42 5$o can 'u! Art Insurance6

Art insurance can e ta0en for various "intage , Anti6ue

tings and it can issued ) various (arties

Art @overs

Private co##ectors J individua#s and cor(orate.

Art ?ea#ers.

Art >a##eries.

Art 3und.

Bareousing Service Providers

1+


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ART INSURANCE

42 +o& to 'u! art insurance6

If )ou ave an insurance ro0er )ou #i0e: )ou 'igt start tere:

ut on#) if te agent is eiter wi##ing to dea# wit s(ecia#i=ed insurers or ave

(ro(er 0now#edgea#e aout art. LGou dont want to sa) te na'e of an artist

and ave te ro0er go: ;uH:L

42 +o& )uc$ &ill it cost6

It is said tat teft insurance is wa) too e9(ensive. Te cost

of insuring a 'useu'Ks entire co##ection is (roiitive: ut tieves donKt

nor'a##) stea# te entire co##ection. Te) on#) stea# (art of it: and usua##) a

(rett) s'a## (art. So insure on#) a (art of it. Teft insurance covers Lincidents:L

not s(ecific wor0s of art: un#ess te insured s(ecifies individua# coverage for

s(ecific wor0s of art in te (o#ic). In oter words: if )ou (urcase teft

insurance: )ouKre insured for te coverage a'ount no 'atter wat gets sto#en.

7%ut insurin( e,en fe& )ost ,alua'le *aintin(s is still too e8*ensi,e27

It is suggested tat one can (a) as 'uc insurance as e can afford.

Tat wa): if art gets sto#en: at #east one ave enoug 'one) to ire to( 6ua#it)

(rivate investigators to tr) and recover it: get (u#icit) for te teft: or (era(s

even (a) a ranso'. Or use te 'one) to u) a state-of-te-art securit) s)ste'

for teir 'useu' or ga##er) or (rivate co##ection/ so tat teft doesnKt a((en

again. 3orget aout weter or not art is re(#acea#e or uni6ue or iconic

receiving co'(ensation for a teft is wat counts: and using tat co'(ensation

to eiter recover te art or 'a0e #ife 'ore difficu#t for (eo(#e wo stea# art: so

difficu#t: o(efu##): tat 'an) wi## sto( stea#ing it.

1%


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ART INSURANCE

MONA LISA9 Te 'ost e9(ensive (ainting in te wor#d

0Art is ne,er finis$e1 onl! a'anone23

VALUATION OF ART:

1!


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ART INSURANCE

Tere are two different (rogra's avai#a#e to cover 3ine Arts. It is i'(ortant to

understand te differences in coverage and wat is necessar) to secure

coverage. 3o##owing are te two different (o#icies wic can e used to cover

an) 3ine Art

1. 3ine Arts Scedu#ed/ and

2. S(ecies-3ine Arts and @irar) Co##ections Unscedu#ed/.

3o##owing e9(#anation descries te difference etween tese two

(o#icies: te coverage avai#a#e and te (rocedures for securing coverage

and re(orting #osses.

FINE ARTS Sc$eule;:

A2 GENERAL DESCRIPTION OF FINE ARTS POLIC/:

It is on#) to e used as a guide#ine and is not inc#usive

of a## of te ter's: coverages: e9c#usions: #i'itations and conditions of te

actua# insurance (o#ic). S(ecific 6uestions and discussions regarding

coverage sou#d e addressed troug Ca'(us Ris0


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ART INSURANCE

Coverage is (rovided wor#dwide: e9ce(t for te fo##owing

countries Israe#: Ira6: Iran: Afganistan: A#ania: 4u#garia: @i)a: @ieria:

Cua: Te C=ec or S#ova0 Re(u#ics: ;ungar): Po#and: or an) of tose

territories for'er#) co'(rising and 0nown as te Union of te Soviet Socia#ist

Re(u#ics and te for'er countr) of Gugos#avia. Te countries #isted aove are

e9c#uded as a resu#t of te 0nown e9istence of art teft rings and te ig

fre6uenc) of art teft.

D2 LIMITS OF INSURANCE:

Per'anent Co##ections and E9iits +*:***:*** at an) ca'(us

#ocation (er #oss/ 2*:***:*** at an) oter #ocation or in transit 2*:***:***

eart6ua0e aggregate (er ca'(us +*:*** su-#i'it for fi#' J Pro(ert) of

Oters 3oreign Trans(ortation and E9iits +:***:*** an) one #oss.

F2 COVERED PROPERT/:

Per'anent Co##ections Bor0s of art: inc#uding (aintings: etcings:

drawings: inc#uding teir fra'es: g#asses and sadow o9es/: (ictures:

statuar): rare oo0s: 'anuscri(ts: rugs: ta(estries: and oter ona fide wor0s of

art: or rarit): istorica# va#ue: or artistic 'erit: inc#uding

Pro(ert) of te Insured.

Pro(ert) of oters on e9tended #oan to te Insured for a (eriod of si9

'onts or 'ore.

Pro(ert) of oters offered as gifts to te Insured or for sa#e to te Insured

and wi#e awaiting for'a# acce(tance ) te Trustees.

1


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ART INSURANCE

Te Insureds interest in residuar) gifts and Doint#) owned (ro(ert): ut

on#) to te e9tent of te Insureds interest terein at te ti'e of te #oss

or da'age.

G2 COVERED PERILS:

Per'anent Co##ections and E9iits a## ris0s of ()sica# #oss or da'age

fro' an) e9terna# cause: e9ce(t as e9c#uded.

Pro(ert) in Transit a## ris0s of ()sica# #oss or da'age fro' an) e9terna#

cause: inc#uding Overseas Transit.

+2 PERILS Eradua# deterioration.

Inerent defect.

RustQo9idation: 'ot: ver'in: war(ing: srin0ing.

@oss during re(airing: refra'ing: restoring: retoucing.

Aridit): u'idit): e9(osure to #igt: eat un#ess caused ) fire:

stor'Q frost etc. @oss ) co##usion of (artner: director.

Inventor) #oss.

At fairs un#ess notified.

Bar and war #i0e activit).

Terroris'

2*


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ART INSURANCE

I2 VALUATION:

Pro(ert) of te Insured sa## e va#ued at te current 'ar0et va#ue of te

(ro(ert) at te ti'e an) #oss or da'age occurs. Te #oss or da'age sa##

e deter'ined according to suc current 'ar0et va#ue.

Pro(ert) ac6uired or to e ac6uired ) te insured as a gift or under wi##s

or si'i#ar re6uests sa## e va#ued at te current 'ar0et va#ue at te ti'e

te #oss or da'age occurs. Te (o#ic) wi## not cover suc (ro(ert)

e)ond te co'(anies interest terein and in te event of #oss of suc

(ro(ert): te interest of te co'(an) at te ti'e of te #oss sa## e tat

as sti(u#ated in te wi##: e6uest: contract or oter docu'ent e9ecuted

etween te co'(an) and te owner of te said (ro(ert).

Pro(ert) of oters #oaned to te insured and wic te insured as een

instructed to insure: or for wic te insured 'a) e #ia#e: sa## e

va#ued at a'ounts agreed u(on ) te insured and owners. In te

asence of an agree'ent: te insurance (o#ic) wi## not e #ia#e e)ond

te current 'ar0et va#ue of te (ro(ert) at te ti'e te #oss or da'age

occurs and in no event for an a'ount in e9cess of tat s(ecified in te

(o#ic).

=2 IN T+E EVENT OF A LOSS

21


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ART INSURANCE

A## #osses sa## e (ro'(t#) re(orted to te Ca'(us Ris0


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ART INSURANCE

SPECIES9FINE ARTS AND LI%RAR/ COLLECTION

A2 GENERAL DESCRIPTION OF SPECIES9FINE ARTS AND

LI%RAR/ COLLECTION:

Tis (o#ic) (rovides coverage for unscedu#ed and 'isce##aneous

ite's tat are not re(orted under te 3ine Arts Insurance Po#ic) descried

aove. Te coverage descried e#ow is a su''ar) of te insurance (o#ic)

owever: it is on#) to e used as a guide and is not inc#usive of a## of te ter's:

coverage: e9c#usions: #i'itations and conditions of te actua# insurance (o#ic).

S(ecific 6uestions and discussions regarding coverage sou#d e addressed

troug te Office of Ris0 Services.

%2 NAMED INSURED:

A## cor(orations: (artnersi(s: Doint ventures: organi=ations: and oter

entities: as ave e9isted or as now or 'a) ereafter e9ist: or for wic it is

re6uired to or as agreed to 'aintain insurance: inc#uding an) affi#iated

associated: a##ied: and susidiar) entities.

C2 TERRITOR/:Coverage is (rovided wor#dwide.

D2 LIMIT OF INSURANCE:

Tis (o#ic) (rovides #i'its of 1:***:***:*** e9cess of a

1:***:*** deducti#e. C#ai's fa##ing witin te 1:***:*** deducti#e wi## e

covered and suDect to te fo##owing scedu#e of deducti#es.

2


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ART INSURANCE

E2 COVERED PROPERT/

A## for's of -

3ine Art of an) nature or descri(tion and

@irar) Co##ections of an) nature or descri(tion: inc#uding ut not #i'ited

to "o#u'es: seria#s received current#): (ersona# 'anuscri(ts: UC arciva#

'anuscri(ts: oter arciva# 'ateria#s: 'a(s: 'icrofi#' ree#s: 'icro cards:

'icrofice: 'icro(rints: (a'(#ets: govern'ent docu'ents: audio discs:

audio cassettes: audio ree#s: co'(act discsQdigita# audio: videota(es:

videodiscs: 'u#ti-'edia 0its: 'otion (ictures: fi#'stri(s: (ictoria# ite's: +

'' s#ides: co'(uter ta(es: 'onogra(ic C?-RO< discs: seria# C?-RO Private C#ient >rou( (rovides coverage for fine art and rareanti6ues.

Indian insurance 'ar0et is e9(eri'enting wit te nice conce(t of artinsurance. In te #ast + )ears: te Indian art 'ar0et as grown 'ore tan+** in sa#es. Aff#uents: )oung entre(reneurs: wo coose art as aninvest'ent o((ortunit): and an u(ward trend of te Indian art-wor0co##ectors are te 0e) drivers of growt for art 'ar0et.

5Insurance (otentia# #ies wit art traders wit stoc0 va#ue u( to Rs +*crore as it is co'(#ete#) unta((ed. Be fee# tat on#) 1*-1+ of (otentia#in tis seg'ent as een ta((ed )et. Be ave a co'(arative#) s'a##

(ortfo#io: )et a (rofita#e one:8 sa)s RaDive Fu'araswa'i: ead-ris0 andre-insurance: ICICI @o'ard >IC @td.

5So'e esti'ate tat te va#ue of art tat can e insured in India tota#s toaout 1 i##ion. Tis as an esti'ated accretion of aout + (er annu'.At tese #eve#s: we esti'ate te (re'iu' (otentia# of te art insurance'ar0et to e aout Rs 1+*-Rs 2** crore overa##:8 sa)s >aurav >arg:


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ART INSURANCE

VARIOUS ARTS 5+IC+ ARE INSURED:


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ART INSURANCE

LOUVRE9 T$e 'i((est )useu) in t$e &orl situate in FRANCE

OSLO Museu) of Nor&a!

Fa)ous NATURE#S *aintin( "e*t in Lou,re

&


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ART INSURANCE

u'ans wasting teir #ives instead of s(ending it in Lusefu#L wa)s. Te

(ainting is dense in s)'o#is'.

Ma(nificent &or"s of t$e (reat Leonaro Da Vinci

%


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ART INSURANCE

Various Vinta(e Cars t$at are insure &it$ Art Insurance *olic!

ART INSURANCE IN INDIA:

Tere is o((ortunit) for fine arts insurance usiness in India:

Cina and Eastern Euro(e. Tese countries are cu#tura##) ric and ave created

a #arge a'ount of wea#t. Tere are various (rivate co##ectors of fine arts.

Prices of fine arts are ig and so its (rotection is a#so ver) i'(ortant. 3or

instance: a (ainting wic is wort a 'i##ion do##ars wou#d definite#) re6uire

insurance ecause an) ar' done to tis (ainting wi## definite#) e a great #oss

to te owner.

!


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ART INSURANCE

Tere as een a s(urt in de'and for conte'(orar) Indian arts. Te wor0 of

te Indian artists are creating 'ar0et for te (otentia# u)ers: #eading to te

co##ection of tose va#ua#e wor0s wic sou#d e insured for (rotection

against an) #oss. 4esides tere is an e9(onentia# growt in transactions and

invest'ents in wor0 of arts in India. A#so: te (re and (ost war Indian Art is

'uc in de'and.

>? ste*s to "no& $o& to o*t for art insurance2

>2 Do I nee art insurance6

Ever) owner of art wi## 0now te va#ue financia##) and e'otiona##)V tat e(#aces on is art. Beter )ou are te artist wo wises to insure te artwor0)ou ave created or if )ou are te art #over wo co##ects art: e it (aintingsandQor scu#(tures: )ou need to (rotect te (ieces )ou own.

Not on#) owners need to e aware of art insurance -ut a#so tose invo#ved inte safe0ee(ing of oter (eo(#eKs art. Art insurance is re6uired to (rotect fro'financia# #oss. Ever)one: fro' te first ti'e art u)er: te art entusiast: te artco##ector: te artist and te ga##erist sou#d insure teir art.

@2 5$at can 'e insure uner a *olic! for art insurance6

$


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ART INSURANCE

Art insurance covers a 'uc wider s(ectru' tan 'an) of us 'igt e awareof. Insurance can e (urcased to cover (eriod furniture: oo0s: car(ets:c#oc0s: go#d: si#ver: (recious 'eta#s: anti6ue Dewe##er): 'a(s: 'eta#ware:'i#itaria: 'usica# instru'ents: oDects dart: oDects of virtue: (aintings:

s0etces: (rints: (i#ate#ic: (otogra(): (o#itica# 'e'orai#ia: (orce#ain:(otter): cera'ics: g#ass: Dade: scientific instru'ents: statues: scu#(tures:s(orting 'e'orai#ia: to)s and 'ore.

2 +o& )uc$ insurance o I nee for )! collection6

Tere is no si'(#e answer to tis 6uestion as it wi## de(end on tecircu'stances and te needs of te s(ecific owner.

Gou wi## need to deter'ine te va#ue of )our co##ection: (roa#) ) aving it

(rofessiona##) a((raised. Gou 'a) a#so coose not to insure te entireco##ection instead: )ou cou#d si'(#) cover te 'ore va#ua#e (ieces.

It is i'(ortant to 0ee( in 'ind tat art co##ections can inf#ate in va#ue rater6uic0#) and tat te re6uired cover 'igt var) fro' )ear to )ear.

B2 +o& )uc$ &ill art insurance cost6

Tis 'igt var) significant#) etween insurers and are de(endent on te ite's

and teir va#ue to e insured. Te cost of te insurance canges if tere is anadded ris0. E9a'(#es of ris0 wou#d e te cance of te wor0 eing sto#en:da'aged or #ost and te cost to recover or re(air te wor0.

Te costs wi## a#so differ de(ending on were te art is to e 0e(t or dis(#a)ed.Gou 'igt need to insure )our wor0 ot at o'e and for e9iition.

Be wou#d #i0e to advise tat )ou co'(are ot insurers: cover and (ricingtroug toroug consu#tation.

2 5$at else o I nee &$en insurin( )! collection6

Ben searcing for te correct insurance: it is we## wort co'ing (re(ared. Bewou#d #i0e to advise tat )ou co##ect and gater te fo##owing for )our fi#e

An inventor) #ist. Gou sou#d co'(i#e a #ist of s(ecific (ieces )ou wisto insure if )ou are not insuring )our entire co##ection.

Proof of (rovenance. Ben )ou ac6uire a (iece of va#ua#e art: )ousou#d e given so'e sort of certification of its origin. It 'a) e

inc#uded as (art of te origina# invoice: wic )ou sou#d a#so 0ee(.


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ART INSURANCE

Potogra(s of te artwor0. Not on#) do )ou need to (rove )ou ownedte wor0: ut )ou 'ust a#so sow te condition it was in at te ti'e of

(urcase efore it 'igt e da'aged or sto#enV.

2 5$at are t$e t!*ical clai)s uner Art Insurance Policies6

Beter )ou are a serious co##ector or individua# wo owns one or two 'aDor(ieces: )ou need to 0now were te financia# vu#nerai#it) #ies.

LTe 'ost co''on financia# ris0 to art is not teft ut fire: accidenta# da'ageand ownersi( dis(utes:L sa)s >ordon


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ART INSURANCE

It is est (ractise to review te artwor0 in )our co##ection annua##). A videoca'era can e an i'(ortant too# to docu'ent )our (ossessions.

2 Does !our insurer unerstan t$at art often nees to 'e in transit6

In Sout Africa: 'ost c#ai's on wor0s of art arise fro' ()sica# da'ageduring trans(ortation of te wor0 and fro' teft of te wor0. Te fre6uenc) ofaccidenta# da'age #oss is on te rise due to te a'ount of assets in transit onSAKs roads as we## as te condition of our roads.

E9a'(#e An Ard'ore "ase (urcased for R2** *** at auction in Octoer in2**$ in Ca(e Town arrived in Moannesurg wit a ci( on it. 3irst indicationsare tat after restoration it wi## e wort R%*:*** J a #oss in va#ue of R1&* ***.Insurance against tis t)(e of ris0 is vita# to a co##ector and is not te t)(e of

cover one receives as a 'atter of course. Tis situation is an e9a'(#e of teneed for s(ecia#ist insurance tat inc#udes cover for decrease in va#ue as aresu#t (eri#s of tis 0ind.

Art not on#) needs to e trans(orted for dis(#a)s: ut a#so for restoration andrefra'ing.


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ART INSURANCE

>?2 5$! an &$en )i($t it 'e i)*ortant to consier a s*ecialist art

insurer6

S(ecia#i=ation 'igt e i'(ortant for te serious co##ector in te event of an

e'ergenc). Tis cou#d inc#ude

E9(erienced ac0u( ) a tea' of (eo(#e wit te e9(ertise to react6uic0#) and a((ro(riate#) to 'ini'i=e #oss.

S(ecia#i=ation cou#d (rovide ot ca(acit) and 0now#edge. Gour insurer 'ust e a#e to assist )ou in understanding )our insurance

(o#ic) and te fine (rint. A s(ecia#ist insurer 'a) assess )our ris0s and reduce te' were

(ossi#e

E9a'(#e In te event of fire s'o0e da'age (enetrates #a)ers of (aint todifferent #eve#s: de(ending on eat. Tis re6uires e9(ert and sensitiverestoration wor0. ;owever: des(ite te 'ost carefu# restoration: an art asset is#i0e#) to de(reciate in va#ue ) u( to +.

Paintin( t$e future of art insurance

Nice insurance (rovider: Pavi#ion Insurance: announces te #aunc of Artguard: a rand new art insurance so#ution for owners of art and co##ectionstrougout te UF. Te (o#ic) covers teft: #oss and accidenta# da'age andda'age in transit for a wide variet) of art J ranging fro' (aintings anddrawings troug to g#ass and conce(tua# scu#(ture.

i#es Rees said 5


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ART INSURANCE

ave ade6uate cover for teir co##ections and * ave never sougt ava#uation.

;e goes on to sa) 5Art guard as een created to (rovide a s(ecia#ist art

insurance (o#ic) wic not on#) offers a cost effective a#ternative: ut a#so(rovides oter features wic wi## direct#) enefit art co##ectors andentusiasts8.

One of tese enefits is te ai#it) to u) new ite's and ave te'auto'atica##) covered under te (o#ic) for ! da)s: witout aving to s(ecif) orinfor' Artguard tat its een ougt.

Oter Artguard cover e#e'ents inc#ude #oss of va#ue and te'(orar) re'ova#

cover. Te (o#ic) features no e9cess on c#ai's.

To cover W+:*** of art wou#d cost Dust W& for te )ear. 4u)ers can get instant6uotes and (urcase cover on#ine coosing to (a) ) credit card or direct deit.

Fine Arts Insurance 9 Inian Trens:

B o r # d over invest'ents in 3ine Arts ave grown over ) ++

annua##)

Prices in Indian Art ave risen ) 2* ti'es since 2**1

@ast )ear #eading @ondon auction ouses re(orted W1*% 'i##ion of sa#es

of Indian Art

ProDection for te )ear 2*11 J dou#e te figure

5


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ART INSURANCE

as0ing Price was W2+:***-+:***. 4ut #ater a (rivate Indian Co##ector

ougt it for W1.!'n.

SURVE/

Sur,e! Met$oolo(! H O'ser,ations:

An e9austive stud) was 'ade to identif) te Art @overs (ossessing

insura#e oDect for wic sur,e! s$eetswere (rovided.

An interactive for'at in te for' of a 6uestionnaire was (re(ared for te

&&


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ART INSURANCE

(ur(ose of conducting te surve) and recording te res(onses.

Surve) was #i'ited to te oundaries of India and te co''on (u#ic.

A#'ost +* (eo(#e were anded wit te seets of 6uestionnaire for'at.

?uring te various interview sessions wit te co''on (eo(#e it

was oserved

+ out of 1* (eo(#e a'ongst te co''on (u#ic dec#ined to e

interviewed i.e. Res(onse rate +* .

Te detai#s (rovided can e rated at & on a sca#e of 1-1*.

4UESTIONNAIRE

1. Cou#d )ou te## us a## te different t)(es of insurance )ou current#)aveH

o @ife insurance

o


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ART INSURANCE

o Endow'ent Insurance

o


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ART INSURANCE

o Proa#) we##-covered

o


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ART INSURANCE

o No.

o


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ART INSURANCE

SURVEY ANALYSIS.

% Aware

% Unaware

% Keen to know more about

Art Insurance

% Not Intrested to aware

themselves about art insurance

% Future of art insurance.

O'ser,ations:

1** of te res(ondents are aware of Art Insurance.

&* ave ta0en Insurance and %* are not insured or not disc#osed/.

None of te res(ondent ave co'(reensive insurance (o#ic).

%* res(ondents (refer Insurance Co'(an) aving etter c#ai'

servicing record.

Conclusion:Tus tis sows tat tere is a great sco(e for art insurance in

India.

+*


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ART INSURANCE

CASE STU?G ON

Introuction:

Te Co'(an): I33CO-To0)o >enera# Insurance Co'(an) @i'ited IT>I/ is a

Doint venture etween I33CO Indian 3ar'ers 3erti#i=er Coo(erative/ , its

associates and te Ma(anese insurance giant Te To0)o


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ART INSURANCE

Beter )ou are a (rivate owner or co''ercia# ga##er): we can cover )ourco##ection for a## ris0s of #oss or da'age at an) #ocation.

Our e9(ertise is e9tensive and our re#ationsi(s wit te art wor#d 'eans tat if

)ou ave to 'a0e a c#ai': )ou can e sure )our case wi## e and#ed in te 'ostsensitive wa) (ossi#e.

Bat is 3ine ArtH

ODects suDect to va#ue a((reciation due to age: ?escri(tion: istor) orrarit) Paintings Scu#(tures

Anti6ues Co##ecti#es 4ric-a-rac

Bat is coveredHBe e9tend te 'ost co'(reensive (rotection avai#a#e in te wor#d: coveringagainst accidenta# #oss and da'age at )our (re'ises and a#so wi#st te insured

(ieces are in transit.

Bat is not coveredH

@oss or da'age caused ) or resu#ting fro'-

1. Natura# ageing: gradua# deterioration: inerent defect: rust or o9idation:'ot or ver'in: war(ing or srin0age

2. Re(airing: refra'ing: restoring: retoucing or an) si'i#ar (rocess

. Aridit): u'idit): e9(osure to #igt or e9tre'es of te'(erature: un#esssuc #oss or da'age is caused ) stor': frost or fire

&. Teft or disonest) co''itted ) or in co##usion wit an) (rinci(a#:sareo#der eneficia# or oterwise/: (artner: director or oter officer oran) e'(#o)ee of te insured: or an) (erson to wo' insured (ro(ert) isentrusted or #oaned.

+. @oss or sortage discovered wi#e ta0ing inventor).

+2


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ART INSURANCE

%. @oss of or da'age to (ro(ert) un#ess it is entered in te insuredKs stoc0records.

Ac$ie,e) en t in >s t !ear of o*eration:

IT>I issued its first (o#ic) on 1%t Manuar) 2**1. Since te nu'er of

satisfied custo'ers of te Co'(an) as grown ) #ea(s and ounds and IT>I

as garnered a significant 'ar0et sare a'ongst te (rivate (#a)ers in te

industr). It was one of te few Co'(anies tat generated (rofits in te first

)ear of

o(eration:

a

co''enda#e tas0 given te #ong incuation (eriods in te insurance industr).

Tis was acieved 'ain#) due to te tecnica# s0i## of te e'(#o)ees: tie-u(s

wit #eading Reinsurance Co'(anies across te wor#d and focus on (utting in

(#ace wor#d-c#ass s)ste' and (rocesses.

Gro&t$ in t$e su'seuent /ears:

+


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ART INSURANCE

Ris" Valuation: 9 Ris0s wit #i'its u( to US 2+ 'i##ion can e rated

witin te ca(acit).

Uner&ritin( Facilities: 9 Under writing is centra#i=ed at cor(orate

office. IT>I as a treat) arrange'ent wit underwriter ;isco9 of te

United Fingdo' for (roviding ris0 cover in different seg'ents. Te

underwriter as c#ients wor#dwide: inc#uding te Nationa# >a##er) of

@ondon and 'useu's in te United States.

Fa)ous Inian Art Galleries H Art 5or"

%irla Acae)! of Art H Crafts A'aninranat$ Ta(ore

Galler!

++


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ART INSURANCE

See)a .o$li =a)ini Ro! Ganes$ P!nePaine#s &or"

Ma$ua Art Galler!

CONCLUSION :

Tere is no reason for not aving art insurance. True: it is 6uite e9(ensive. ArtInsurance (re'iu's t)(ica##) range around -& of te face va#ue of te art.Bi#e it see's #i0e a s'a## a'ount: in 'ost cases: es(ecia##) wen te art in

6uestion is wort 'i##ions: te (re'iu' is not a s'a## a'ount. Gou needinsurance for )our art ecause it is wort a #ot of 'one). Gou need to e(rotected against #oss or da'age to an)ting (recious or of ig va#ue tat )ou'igt own. Often artwor0 is a'ong te 'ost e9(ensive tings tat )ou ownand it is a#so easi#) da'aged and art tefts are not unco''on.

Insurance against #oss or teft of )our art is te 'ost co''on t)(e of artinsurance and it is a#wa)s a good idea to ave a (o#ic) tat covers tis. It is6uite diseartening to #ose )our favorite and 'ost va#ua#e (iece of art. In 'ostcases: (re'iu' for tis t)(e of insurance is 6uite ig. Terefore: it is a good

+%
http://www.artofbengal.com/ganeshpaine6.jpghttp://www.artofbengal.com/ganeshpaine6.jpghttp://www.westbengaltourism.gov.in/application/Img_Maint/uploads/2/Jamini-Roy.jpghttp://www.artslant.com/ind/events/show/82762-mystical-narratives


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ART INSURANCE

idea to e at #east (artia##) covered. Bi#e it 'a) not co'(ensate te 'one))ou s(ent in ac6uiring te artwor0: it can (era(s offset te cost of recover).

Art insurance tat covers da'age is e9tre'e#) usefu# to (rotect )ou in te

unfortunate event tat te artwor0 is da'aged. Usua##) da'age (o#icies covera## causes suc as trans(ortation: natura# disasters: fire etc. Re(airing art:es(ecia##) scu#(tures is an e9(ensive (rocess as one wou#d re6uire e9(erts toget it done. Bit a## of it covered: te insurance co'(an) ears te ris0 wi#e)ou (a) te (re'iu' and te) wi## and#e te finances for )ou.

In addition to #oss and da'age: )ou can a#so insure )our art for re(airs. Bi#eit see's te sa'e as co'(ensation for da'age: it is so#d se(arate#) ecause iton#) covers 'inor refurising suc as (o#ising or fra'ing. It doesnKt inc#udere(airs tat arise due to an) da'age: for wic tere is a#wa)s da'ageinsurance to go ).

Art insurance a#so (rotects )ou against dis(utes tat arise fro' te ownersi(of te artwor0. In te un#i0e#) event tat te artwor0 )ou (urcased wasorigina##) ac6uired troug an) unfair 'eans and te origina# owner wises tosue )ou: )our insurance (rotects )ou fro' te #ega# fees and co'(ensation tatis sougt. To avoid an) suc ass#es: it is est to trace te origin of te artwor0traced and (urcase artwor0 on#) fro' a re(uted dea#er.

Overa## art insurance is a ver) usefu# and in 'ost cases necessar) entit) to gowit )our art weter )ou are a dea#er: (rivate owner or owner of a (rivatega##er). Te est )ou can do is to coose te (o#ic) tat )ou fee# is rigt for)ou. Art insurance is e9(ensive ut tat is no reason not to ave it. Tei'(ortance of it under'ines te (rice and if )ou can afford a ver) e9(ensive

(iece of art )ou can Dust as we## afford te insurance for it7X

5e'lio(ra*$!:

1. >oog#e

2. Gaoo

.


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ART INSURANCE

!.

final copy of art insurance.(5)

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