INSURANCE

INTRODUCTION

Insurance is a contract whereby, in return for the

payment of premium by the insured, the insurers pay the
financial losses suffered by the insured as a result of the
occurrence of events. The term “risk” is used to describe
all the accidental happenings, which produce a monetary
loss.
Insurance is an ethos in which a large number of people exposed to a
similar risk make contributions to a common fund out of which the losses
suffered by the unfortunate due to accidental events, are made good. The sharing
of risk among large groups of people is the basis of insurance. The losses of an
individual are distributed over a group of individuals.

Definition

There can be two approaches for defining insurance. One is functional

approach other is contractual approach.

Functional Definition

According to Encyclopedia Britannica,” Insurance may be defined as a

social device where by a large group of individuals through a system of
equitable contribution, may reduce or eliminate measurable risk of economic
loss common to all members of the group

Contractual Definition

According to Justice Tindall, “Insurance is a contract in which a sum of

money is paid to the assured in consideration of insurer’s incurring the risk of

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paying a large sum upon a given contingencies.”
The risk becomes insurable if the following requirements are compiled with :
The insured must suffer financial loss if the risk operates.
 The loss must be measurable in money.
 The object of the insurance contract must be legal.
 The insured should have sufficient knowledge about the
Risk he accepts.

WHAT IS INSURANCE?
Mankind is exposed to many serious perils such as property losses from
fire and windstorm and personal losses from disability and premature death.
Although it is impossible for an individual to foretell or completely prevent their
occurrence but it is possible to provide against their financial affect—the loss of
property and earnings.
From the point of view of the individual the life Insurance may be defined
as a contract whereby for a Consideration amount called the premium, one party
(the insurer) agrees to pay to the other (the insured) or a beneficiary a particular
amount upon the occurrence of death or any other agreed event.
 Insurance is the method of spreading and transfer of risks
 Losses of few unfortunate are shared by and spread over to many
exposed to the same risk.
 Assets created by the owner in expectation of future needs have a
value.
 Losses of assets for any reason deprive the owner of the expected
benefits.
 It acts as a form of a safeguard against misfortunes.
 From the point of view of community life insurance may be defined as
a social device to make accumulations to meet uncertain losses
resulting from premature death or disability.

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PURPOSE AND NEED OF INSURANCE

As said earlier that the making is exposed to many serious perils which
risk the security of their belongings. The risk here means that there is a
possibility of occurrence of loss or damage to the property, it may happen or
may not happen. Insurance is relevant only in the contingency of uncertainty. If
there is no uncertainly about the occurrence of the loss it can’t be insured
against:
 Assets are likely to be destroyed or made non-functional due to perils like
firefloods, breakdowns, lightning and earthquake.
 Damage to assets caused by any perils is the risk that assets are exposed
to.
 Risk means possibility of loss or damage, which may or may not happen.
 Insurance become relevant only if there is uncertainly of occurrence of
event leading to loss.
 No uncertainly No insurance.
 We can say that the human life value is an ongoing generating asset,
which can be lost on early death or disability caused by accidents.
 Insurance doesn’t protect the assets but only compensates the economic or
financial loss.
 Basically insurance covers tangible assets but the concept can be
extended to intangible also.

TWO BASIC PRINCIPLES TO MAKE INSURANCE POPULAR

 People are exposed to risk and the consequences of which are difficult to
borne by individual.
 No one should be in the position to make the risk happen and take
advantage.

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CONCEPT OF INSURANCE

 The concept of insurance is that people exposed to the same risk come
together and all shares loss suffered by a few.
 The insurance companies play a role of implementing the said concept ---
control in advance the shares in the shape of premiums and create a fund
out of which loss is paid.
 Life insurance covers the contingencies and provides relief to the family
members in the event of death or retirement of the bread earner.
 Insurance covers the risk of dying to early and living to long.

KINDS OF INSURANCE

Insurance can be classified into two categories.

1. Life Insurance
2. General Insurance

Life Insurance
The subject matter of this type of insurance is human life most of the
insurance policies are combination of savings and securities. According to
section 2 (ii) of Insurance Act 1938” Life insurance is the business of effecting
contracts of insurance upon human life including any contract, where by the
payment of money is assured on death except death by accident on the
happening of any contingencies dependent on human life and any contract
which is subject to the payment of premium for a term dependent on human
life.”
Life insurance is a contract where the person requiring and insurance pays
a consideration / premium to maintain a policy and the insurer promises to pay a
sum assured or a guaranteed amount on the happening of an eventuality. If no
eventuality occurs then the insured may be eligible for some bonus also.

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General Insurance
All the types of insurance are called general insurance or non life insurance.
1. Marine Insurance
It covers the sea or marine perils. Perils are the cause of loss which
is a condition that may increase the chance of loss. Protection agonists
marine perils like sinking of the ships, capture by enemy, sea piracy etc.
2. Fire Insurance
It covers the loss due to fire to the property like houses, shops,
goods, factories or godown etc. it covers the loss from fire and consequent
loss from such fire i.e. the loss of work due to stoppage of work due to
fire.
3. Liability Insurance
This type of insurance covers the risk of liability against third
parties, which an insurer might have to pay under certain circumstances
e.g. injury to the property and/or person of a third person in road accident
or employer’s liability for an injury or death of a worker while performing
duty etc.
4. Social Insurance
This insurance is aimed at providing social security to the weaker
section of the society to the weaker section of the society. It may take the
shape of pension plans, disability or sickness benefits etc. the premium
may come from govt. employee and may also be shared by beneficiary.
5. Art Insurance
Insurance holds a lot of importance in today's world. One should
have insurance of house, self, besides health to fight against any probable
unpleasant events. Like other forms of insurance, art insurance is also of
utmost significance. Insurance for art gives protection to fine arts
collections against loss and damage caused by theft, fire, water or
breakage.

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THE FUNDAMENTALS PRINCIPALS OF INSURANCE:-

The mechanism of insurance involves a contractual agreement in which

the insurer agrees to provide financial protection against a specific set of risk for
a price called as Premium. It is hence essentially an intangible product. The
insurance customer cannot see or feel the product he or she is buying. And
though the policy document does give the comfort that the coverage is on,
generally no real service is delivered until a claim occurs.

In normal commercial transactions, the legal maxim “caveat Emptor,”

Latin for “let the Buyer Beware,” operates. This means that the buyer takes the
risk regarding the quality or condition of the property purchased. This in turn,
implies that the buyer has the opportunity to examine the product before
purchase. Since, in view of what is started in the preceding paragraph, the
insurance customer has no such opportunity, insurance transactions need be
governed by special principles in order to protect the interests of the contracting
parties, particularly the customer.

It is in view of this that the contracts are governed by certain special

fundamental legal principles. These make insurance contracts very unique and
different from other kinds of commercial contracts. As we shall see below,
there are however, difference between life and general insurance with regard the
application of the principles. We shall indicate these in the course of the
discussions.

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The fundamental principles are:-

1. The Principle of Utmost Good Faith:-

The principle of utmost good faith, uberrimae fides (in Latin),

literally means perfect good faith or abundant good faith. The phrase is
used to express that an insurance contract must be in perfect good faith
concealing nothing. The principle is mostly discussed in the context of
the duty of the insured towards the insured, though it is equally applicable
to the insurer’s duty towards the insured.
From the point of view of the insured, the principle of Utmost
Good Faith could formally be defined as “A positive duty to voluntarily
disclose, accurately and fully all facts material to the subject matter being
proposed, whether requested or not.”

2. The Principle of Indemnity:-

The principle of indemnity, as applicable to general insurance

policies, means that the policyholder, after experiencing a loss, is before
the loss. The policy indemnifies him or guarantees that he would be
insuring his assets and recovering more than the loss. This is possible
since the economic value of an asset at the time of the loss as well as the
extent of loss can be determined and compensation payable determined
accordingly.
In case of life insurance, however, the economic value of a human
life cannot be measured precisely before death. It could in a fact be
unlimited. Hence, life insurance cannot strictly be a contract of indemnity.
This does not, however, mean a person can be granted life insurance for
an unlimited amount.

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3. The Principle of Insurable Interest:-

The second major principle of insurance is that of insurable interest.

The existence of ‘insurable interest’ is an essential ingredient of any
insurance contract. Insurable interest is the legal pre-requisite for
insurance.
A common definition used for insurable interest is “the legal right
to insure arising out of financial relationship, recognized under law,
between the insured and the subject matter of insurance”.

It can be seen that insurable interest has three essential elements:

i. There must be properly, right, interest, life or potential liability capable
of being insured.

ii. Such property, right, interest, life or potential liability must be the
subject matter of insurance.

iii. The insured must bear a legal relationship to the subject matter such
that he stands to benefit by the safety of the property, right, interest,
life or Freedom of liability. By the same token, he must stand to lose
by any loss, damage, injury or creation of liability.

4. The Principal of Subrogation:-

This is another principle that is peculiar to general insurance.

Subrogation is the legal right of the person who has paid for the damage
caused by another to recover that money from the ship-owner.
Subrogation is thus the right of the insurance company that pays the claim
to recover the same from those who are responsible for causing the loss.
Contribution, in fact, is a corollary of the principle of indemnity.

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 5. Principle of Contribution:-

The third principle that is peculiar to general insurance is Principle

of contribution. Contribution, again, is a corollary of the principle of
indemnity. Contribution implies that if the same property is insured with
more than one insurance company, the compensation paid by all the
insurers together cannot exceed the actual loss suffered. That is all the
insurers would together indemnify the policyholder for the loss suffered
and no more. If he were to collect insurance money from all the insurance
for the full value, this would violate the principle of indemnity, as he
would make a profit the loss.

How does insurance work?

In very simple terms, insurance is a pooling arrangement whereby

contributions are collected from all members who join a pool. The amount so
collected is utilized to compensate members who suffer loss. The arrangement
works because general not all members who join the pool suffer losses. In order
to ensure equity a pool would consist of people who are exposed to similar risk.

As insurance evolved over the years, insurance companies have come up

to transact insurance business, which have developed expertise in assessing the
risk of an individual, a motorcar, a building or goods in transit. On the basis of
this assessment, they decide whether the asset offered for insurance could be
covered, and if so at what premium rate. In a sense they still operate pools since
they group together assets or person with similar risk profiles together for the
purpose of rating or charging premium. They also perform a number of other
functions including effective managing the funds collected that helps to reduce
the premium payable by policyholders.

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 ART

Art is a vital part of each nation’s heritage and as such carries a special
significance beyond its value as an asset. Artwork that was confiscated by the
Nazis or that changed hands as a result of forced sales touched a sensitive and
emotional cultural nerve. The United States recognized early in the Second
World War that art needed special protection from the ravages of the war.

In the Monuments, Fine Arts and Archives units in the US Forces that
collected art in the chaos of the end of the Second World War, we created a
special responsibility for the United States for the return of art stolen by the Nazi
regime.

We are also aware of the implications unclear provenance has on

museums and the international art market. We have sought to be as inclusive as
possible in preparing for this seminar and for the Washington Conference. We
met with claimants, museums, art dealers, auction houses, researchers,
historians, non-governmental organizations in the US and abroad, and
governments to open dialogue and to seek areas of congruence on the resolution
of lost and stolen art from the Nazi regime.

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 ART INSURANCE

Art needs to insured separately from ordinary contents. Only those things
that can be replaced with reasonable ease can be insured with ordinary
replacement value insurance. Art is not replaceable with reasonable ease. Art
is unique and original.

`Each art or antique item needs to be listed carefully on the policy.

Updated appraisals will be needed periodically. The owner is responsible for the
appraisal.

The insurer can “repair” or “replace” when damage or loss occurs.

Replace means to give the owner the money amount agreed upon in the
insurance contract. Repair means the insurer will provide enough money to
repair the item up to the agreed limit of the policy.

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 Art is normally insured based on a recent appraisal. The appraisal must be
done by a qualified person. The owner can insure the item at the appraised value
or a lower value… but not a higher value.

The insurance company and the owner “agree” on a value. Agreed value
is a legal and binding term. The insurer will pay up to the agreed value if the
item is lost or damaged. The insurer will not pay more than the agreed value
even if the market value has increased.

The agreed value of the art or antique item is the basis of the insurance
premium charge. The basic rule of thumb is $1.00 charge per $100 of value. The
actual rates can vary based on circumstances such as security and location.

Some items that are extremely valuable but not protected could be
uninsurable. A gold chalice left out on an alter in a church that is not locked
would be an example of an item that is uninsurable. The gold chalice should be
kept in a locked compartment or safe when not in use to be insurable.

Ordinary home insurance or commercial building insurance is not

designed to cover art and special items. Art, jewelry, antiques and other valuable
and unique items need to be insured with fine art insurance.

Fine art insurance is known professionally as Inland Marine insurance.

This is a very old term. Inland Marine insurance has developed over centuries
with its own rules and limits. It has become the standard insurance for art,
antiques, jewelry, antiquities and rare items that are not replaceable.

What is the importance of art insurance?

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 Often art is bought for a lot of money as an investment or a hedge against
inflation, it is wise to insure these items in case they are stolen or damaged
reducing or eliminating their cash value to the owners.

Who needs Art Insurance?

From the art enthusiast to the first timer, if you are an artist who wishes to
insure the artwork you have created or if you are art lover who collects art, be it
paintings and/or sculptures, you need to protect the pieces you own. We also
cover period furniture, books, carpets, clocks, gold, silver, precious metals,
antique jewellery, maps, metal ware, militaria, musical instruments, objects
d’art, objects of virtue, paintings, sketches, prints, philatelic, photography,
political memorabilia, porcelain, pottery, ceramics, glass, jade, scientific
instruments, statues, sculptures, sporting memorabilia, toys and more.

Why should you take out Art Insurance?

You need to protect your pieces against theft, damage & potential

reduction in value. Art collections can inflate in value rather quickly, if a
percentage excess is exercised by your current insurer, this could result in a
hefty excess at the time of a claim. Our private collector’s policies have zero
excesses.
Once an Agreed Value has been set, it eliminates the possibility of your
investment actually costing you a loss in your insurance claim, if say; the art
investment has decreased in value. Your claims will not have the possibility of
average applied.

What is your actual loss if 1 piece in a set is damaged?

If you own a collection of art that has increased in value because it is a
set and if one of the items is damaged or stolen, a conventional insurer will only
reimburse you for the value of that one item!

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 However, with Barrington, we will compensate you for your actual loss,
being the value of the individual piece lost plus the reduction in value of the set
because of this one missing piece.

How will you be compensated for the reduction in value caused by

restoration?

The duty of a conventional insurer is to put you back into your original
position before a claim occurred. If your art is damaged whilst insured on a
conventional policy, a simple restoration of your asset may be all that the insurer
is required and prepared to do. However, for the collector, the actual value of the
piece would have been severely reduced as any expert would be able to see the
restoration work done.
If your art is insured with Barrington, after the restoration is complete, an
independent valuator will assess the actual value you have lost and you will be
compensated accordingly.

TYPES OF ART INSURANCE

In this type of insurance, various things are covered by various

companies. There are various types of insurance policy which are related to art.
Which are listed below:-

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 1. Fine art insurance

2. Jewelry & Art Insurance

3. Public Art Insurance

4. Art Gallery Insurance

5. Theft Insurance

1. Fine Arts Insurance

Fine Arts Insurance covers the fine arts collections against loss and
damage brought about by fire, theft, water or breakage. Under the artwork
insurance items such as wine, rare books, antique furniture, sculpture, paintings,
jewelry and more alike are included. A number of art insurance policies also
offer certain additional services.
People with wide-range of art collections should own a fine art insurance
policy. The reason being the home owners' insurance cover usually will not
cover broken or lost items. They do not provide worldwide coverage and have
restrictions on transportation besides off-site storage. There are for all intents
and purposes two types of fine arts insurance covers. These are: scheduled
covers and blanket covers. With scheduled policies, every item is independently
listed on the policy for a confirmed insured amount.

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 An experienced fine arts insurer also must possess worldwide contacts,
including appraisers, conservators, adjusters, shippers, packers, besides global
warehouses. These contacts can be more than ever important at the many
decisive moments. In the event of a loss that involves serious smoke or water
damage. For example, having instant access to an expert conservator can swiftly
steady the affected object, and in turn, may reduce the amount of permanent,
long-term harm besides loss of worth to the work of art.
All in all you need to protect your artwork collection by getting every
item in it registered by the Fine Art Registry. You need to get it appraised by an
art dealer so that you have a clear idea about the amount of coverage required
for your collections, before speaking to any agent offering insurance for art. If
you have a small home collection, get it covered under homeowner's insurance
policy. Otherwise contact the artwork insurance companies for more coverage of
larger collections.

2. Jewelry & Art Insurance

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 The insurance is specifically designed around the risk of the piece,
although most personal lines products covers this in the market today, it does
appear that these pieces are added to your normal day to day all risk cover with
the exact same limitations and excess.

Who needs Jewellery Insurance? 

All people who have jewellery pieces. If are in the market of obtaining
or purchasing jewellery from engagement to wedding bands to necklaces to
earrings, you will need this cover. You will need this cover if you own any
completed manufactured jewellery or designer jewellery with the exception
of raw materials, gems or gold bars. 

Why should you take out Jewellery Insurance? 

Any completed manufactured jewellery or designer jewellery (except for
raw materials such as gold bars and gems) does not only have its own value but
also has its own personal value. Should an incident arise where your priced
designer pieces are damaged or stolen, one would prefer the claim to be handled
and settled in the most professional manner. 

3. Public Art Insurance

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 This insurance is for the fabrication and installation of public artworks. It
offers general liability coverage for the artist during the fabrication, installation,
and/or the exhibition of the work. You can elect to cover the artwork itself as
well.

What is public art liability insurance?

It's liability coverage that protects you against claims for damage to a
location or injury to a spectator or innocent bystander during fabrication,
installation, and exhibition. Do note that this does not automatically include
coverage for damage to the artwork itself, so you're covered if the art hurts
someone but not if someone hurts the art. That's a separate policy.

4. Art Gallery Insurance

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 An Art Gallery Insurance Policy or Gallery Insurance Policy is a package

policy typically combining General Liability, Property Insurance and fine arts or

offering them separately to maximize coverage options and minimizing pricing.

Majority of the art galleries all over the world settle for art gallery
insurance. They take one or the other type of art gallery insurance policy to
protect their valuable works of art.

One needs to know that art needs to insured separately from regular
contents in the gallery. Only those stuffs which may be replaced with practical
ease may be insured with regular replacement value insurance instead of art
insurance. Bear in mind that art cannot be replaced with ease. It is not only
unique, it is original as well. So it requires insurance for art only.

5. Theft Insurance:-

Theft Insurance covers burglaries and robberies. 

Burglary is defined to mean the unlawful taking of property

within premises that have been closed and in which there

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are visible marks evidencing forcible entry. Robbery is

defined as that type of unlawful taking of property in which

another person is threatened by either force or violence. 

Who needs Theft Insurance?

Most businesses need this insurance. More often than not, general
insurance policies cover basics and this cover will protect you over items and
stock that has not been specified on other policies.

Why should you take out Theft Insurance?

Having to replace items can be incredibly costly and it is often cheaper to
insure items than having to replace them. It also gives you peace of mind
knowing that your business is protected.

HOW TO BUY ART INSURANCE

Purchase as much insurance as you can do, whether or not that sum
covers the full value of your art. A majority of loss, damage, or theft hurts only
to a part of collection, and not the complete collection. So, getting some
compensation is superior to getting no compensation at all.

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Instructions:-

1. Step 1
Speak To Your Current Homeowners Insurance Company.
Many people who own art cover it under their homeowners property
policy. It is always easier to extend a relationship rather than start a new
one so check with your current provider to see the options they provide.
The next step is for those who are not satisfied with the plan under
their homeowners. These tend to be those with larger, more valuable
collections.

2. Step 2
Find An Outside Art Insurance Specialist.
If you have a larger collection then a specialty provider may offer
advantages that coverage’s under a homeowners plan don't. The most
common advantages are no deductibles, coverage of recent purchases and
less exclusion.
Look for a specialty insurer that is knowledgeable in the field. Some
deal only with art and collectibles but some companies, mostly high net
worth insurers will specialize in art and collectibles also.

3. Step 3
Get Your Collection Appraised.
This can be either Step 2 or 3. It is crucial to know how much your
collection is worth in order to buy the right coverage. Also, many times
the company will offer discounts for a collection that has been appraised

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 in the last two years. After buying insurance it is standard to have your
collection appraised every 3 to 5 years as market prices often shift.

4. Step 4
Determine How Much Coverage You Really Need.
The art insurance company will tell you that you need coverage at 100%
of the value of your collection. However, many people decide to insure
for less. Usually these are circumstances where the art is held in different
locations, and the owner doesn't foresee disaster in all places at once.
Another instance is when owners don't move their art, as most claims
occur as a result of moving damage.

ART VALUATION

Art valuation, an art-specific subset of financial valuation, is the process

of estimating the potential market value of works of art and as such is a financial
rather than an aesthetic concern. Art valuation involves comparing data from

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multiple sources such as art auction houses, private and corporate collectors,
curators, and specialized analysts to arrive at a value. Art valuation is
accomplished not only for investment and financing purposes, but as part of
estate valuations, for charitable contributions, for tax planning, insurance, and
loan collateral purposes.

1) The art market economic model

2) Art valuation generally

3) Valuation for tax and other law-related purposes

1) The art market economic model

The art market operates in an economic model that considers more than
supply and demand: is a hybrid type of prediction market where art is bought
and sold for values based not only on its perceived cultural value but on its
predicted future monetary value, thus valuing artworks for such a market takes
into account a variety of factors. Supply and demand affect the secondary
market, existing art that has been sold at least once before, more than it does the
primary art market, where new art comes to the market for the first time. Once a
work is sold on the primary market it enters the secondary market. Alpha
consumers (trend-setters) and gallery or agent promotion are the prime forces at
work in valuing works on the primary market: new, contemporary art that has no
predictive market history and thus its valuation is more difficult and speculative.
In the late 1980's, investment firms focusing on both the primary and secondary
art markets began to spring up and study the market in-depth.

2) Art valuation generally

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 Art valuation activities concerns itself with estimating market demand,
liquidity capability of lots, works, and artists, and valuation trends such as
average sale price and means estimates.
Because the art market's participants are far more limited in number than
the securities or commodities markets, art valuation relies to a great extent on
the advice and enthusiasm of experienced private collectors, curators, and
specialized market analysts, and this limitation in turn increases the risk that
some items may be over or undervalued.
Additionally, the art market is seasonal rather than ongoing: art valuations
made for an autumn auction may be unrealistic for the following spring auction
season as fortunes in the financial markets during one season affect the art
market in the following season. In the case of contemporary art especially,
when an artist is not well known and hasn't any auction history, the risks of
incorrect valuation are greater. Valuation estimates are given in ranges of prices
to offset uncertainty.
Research data available from art auction houses such as Christie's,
Sotheby's and Phillips de Pury & Company are those tracking market trends
such as yearly lot transactions, bought-in statistics, sales volume, price levels,
and pre-auction estimates.
3) Valuation for tax and other law-related purposes

In the United States art bought and sold by collectors is treated as a

capital asset for tax purposes, and disputes relating to the valuation of art or the
nature of gain on its sale are often decided by the Tax Court and other courts.
Important cases include:-
1. Crispo Gallery v. Commissioner (need to produce credible documentary
evidence of valuation as taxpayer has ultimate burden of persuasion),
2. Angell v. Commissioner (fraud perpetuated upon the IRS through inflated
appraisals),

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3. Drummond v. Commissioner (cannot claim gain from art sale as income
from business unless actually in the business),
4. Estate of Querbach v. A & B Appraisal Serv. (appraiser's liability for
misidentifying a painting),
5. Estate of Robert Scull v. Commissioner (previous sales of the same property
without subsequent events affecting value are generally strong indicators of
fair market value),
6. Nataros v. Fine Arts Gallery of Scottsdale (in the absence of fraud or
negligent misrepresentation, buyers believing they have overpaid at auction
because of bad advice bear a heavy burden of proof),
7. Williford v. Commissioner (the 'Williford Factors' test: eight factors to
determine whether property is held for investment or held for sale).

ART APPRAISAL

Art appraisal is the process of evaluating the quality, condition, rarity,

provenance and source of a particular piece of art in order to establish its value.

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The items appraised can range from paintings, sculptures, rugs, furniture,
jewelry and any other decorative items that are either one of a kind or produced
in limited numbers. Art appraisals can be categorized as the fine art wing of
personal property appraising, and both have the primary purpose of informing an
owner of the item’s value. In terms of value, both fair market and retail
replacement values are examined depending on the appraisal’s purpose.
Appraisers may be able to give an approximate value based on a series of
photographs but prefer to appraise an item first hand in order to better judge the
item’s condition and peculiarities.

Why Commission Art Appraisal?

Every work of art is unique and irreplaceable. A well-prepared value
statement in an appraisal report will help you and your insurance agent take
precautions to prevent or minimize loss.
Expertise, scholarly research on your object, and professional
presentation of company’s value conclusion will convince your insurance agent
why your art work is unique and irreplaceable, and why it should be protected
and preserved properly.
Company’s Consultation Appraisal for Acquisition (buy) will equip you
with the knowledge of the sophisticated global art market. To begin with,
inspiring works of Chinese art have an aesthetic quality and histories that are
difficult even for Ph.D.’s to appreciate and explain. 
In addition, the art market is quite unlike the real estate market, in that it
is mysterious, difficult to learn about, and subject to significant fluctuation.  You
can’t just look up the previous sales records for the object you wish to buy. 
These important pieces of knowledge, however, are provided in a professional
art appraisal for acquisition. Company’s art experts (PhDs) are happy to serve as
an extra pair of expert eyes on your behalf and help you build up a first-class art
collection.

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 Company’s Consultation Appraisal for Disposition (sale) prepared by a
first-rank art specialist (Ph. D. in Chinese Art and Tibetan Art) will allow you to
present your art object to the auction house or a dealer with an expert's
knowledge and confidence. You will not be overwhelmed by auction house
representative or dealers who do not take the time to explain unfamiliar
terminology from the worlds of Chinese aesthetics and modern art sales.  A
knowledgeable owner, educated about the object as well as how objects like it
have fared on the market in the recent past, stands a much better chance of profit
when negotiating from a position of strength.
An expert art appraisal not only prepares you to deal with professional
buyers, but also opens new opportunities. Many people assume that an auction
house will always offer the best value for their object, but that is often not true.
You need to consider (and understand) an adjusted value estimate, the
calculation of insurance costs, fees for catalog illustrations, buy-back reserve
fees, and other extra charges and conditions typically subtracted from the
hammer price of an auction sale. 
A professional art appraisal alerts you to these possible charges in clear
language and also helps you think creatively about other options, including
museum donation, gift to charity, and other measures that can help reduce your
tax burden.
Company’s Appraisal for Bankruptcy (Forced Liquidation, Orderly
Liquidation or Salvage/Scrap) will allow you to stand firmly on your feet and
make a strong and convincing argument in court. We are the most qualified
Chinese art expert appraiser in the field and our opinions carry weight in the
court.

No matter what your appraisal needs is, you are not alone. Companies are
dedicated expert art appraisers, working exclusively for you. The art appraisal

27
report prepared by Company’s art specialists will provide all the information
you need to achieve your goals successfully.

WHO NEED ART APPRAISAL?

1. Appraisals for Owners Contemplating Sale –

Whether you have owned your Chinese art for decades or recently
inherited it, an art appraisal will help you understand your piece, know its
potential value, and make informed decisions about whether, when, and where
to place it on the market. Our Chinese art appraisals offer in-depth analysis of
how your Chinese art object will fare in the current Chinese art market--a fast-
moving arena in which expert knowledge and advice are essential.

2. Appraisals for Insurance Claims –

If you have art objects, such as sculpture, paintings, prints, rare books,
artifacts, antiques, or other collectibles, you should obtain a professional
appraisal that accurately lists, describes and provides current retail replacement
values for your personal property. A professional appraisal report may prove
invaluable to you, your insurance providers, law enforcement officers, and your
heirs in the event of accident, catastrophic loss, theft, or untimely death.

28
Art Appraisal for Insurance (Coverage, Claim-Settlement)

when you need an appraisal, how to choose an insurance broker/company,

how to understand the value of your art object, and the coverage considerations
you need to know before you insure your art work.

Understanding Art Insurance

1. Homeowner's Insurance Policy might be ideal for those with antiques and
colltibles worth a few thousand dollars. But a homeowner’s policy has
exclusions and deductibles. Art insurance companies usually adopt a Risk
Prevention Strategy to protect against any risk, such as damage or loss.

2. A Specialty Policy has broader coverage. It involves different valuations

(such as) aggregate, current value and loss limit values to underwrite a specific
type of collection.

3. The High-net-worth Coverage is favored by leading art insurance companies,

such as Chubb, AIG Private Client Group, AXA Art Insurance, and Lloyd's of
London, specializing in high-value art, antiques and collectibles.

4. The "Inland Marine" Coverage means the coverage of all types of losses,
excluding acts of war, nuclear attack or government confiscation. This coverage
might be ideal for those who plan to ship his or her collectibles back and forth
between homes in New York and Palm Beach, Fla.

5. Liability Insurance for Fabrication, Installation, and /or Exhibition of Works

of Art that Are in Public Areas is designed to cover static works of visual art
(sculptures, mainly) that are in the area accessible by the public.

29
6. A Valuable Policy is structured to supplement homeowner's coverage if you
have valuables that exceed $10,000, the Atlantic Mutual recommends
considering this coverage.

7. Ownership Dispute Insurance is a title insurance policy structured to address

the chair of title and lien risks inherent in art as a form of personal property. It is
a "Single premium, indefinite term policy." In other words, you pay once and
get protection for as long as you possess the art work.

30
 INSURANCE TIPS

For anyone, public or private, who owns expensive art:

 Photograph and document your collection, or at least the most valuable

works in your collection. Include current appraisals, original sales
receipts, and any additional paperwork that speaks directly to the value of
your art.

 Buy as much insurance as you can comfortably afford, whether or not that
amount covers the entire value of your art. Most loss, damage, or theft
affects only a portion of a collection, not the entire collection. To repeat--
receiving some compensation is better than receiving no compensation at
all.

 Make sure you understand your insurance policy. This means reading the
fine print, and asking every question about every conceivable loss or
damage situation that you can think of. You don't want to find out after a
loss that you were not covered for that specific type of loss.

 Theft/damage insurance for art, added onto your home insurance,

generally costs $1-$2 annually per $1000 of coverage (less if you have a
good security system in place). Several insurance companies specialize in
covering art and antiques exclusively. Coverage details can be discussed
and/or negotiated with your insurance company.

There's no excuse for not insuring an art collection. If you can afford the
art, you can afford the insurance. And remember-- you don't have to insure for
every last penny of value in your collection. Loss or damage rarely affects an
entire collection, and you'll find that in the large majority of cases, even partial

31
coverage will reimburse you for a substantial percentage of the dollar/rupee
amount involved in most occurrences.

INSURING YOUR ART

"The Scream" and "Madonna," two major

paintings by famous Norwegian artist Edvard Munch,

were stolen several years ago from the Munch Muse-

um in Norway by armed robbers in broad daylight.

The significance of the art theft is notable, but what's

really shocking is that the art was not insured against

theft.
According to a BBC news story, John Oyaas,

managing director of the museum's insurers, said of

the paintings, "They are not replaceable so you can't buy 'The Scream' on the
street and put a copy up there. The focus is on other issues than insuring them.
To a certain extent this is common practice because these items aren't
replaceable."
Now let's take a close look at that statement. Oyass appears to be saying
that the paintings are so valuable that they're not worth insuring, or put another
way, since the paintings are not replaceable, insuring them is a waste of money.
This thinking makes absolutely no sense. The museum should have had theft
insurance; all museums should have theft insurance, as should all art galleries
and private collections. Whether or not a work of art is "replaceable" is not the
issue. The issue is getting compensated if the art is stolen. What's better-- a
stolen painting and a $5 million insurance settlement or a stolen painting and a
$0 insurance settlement?

"But theft insurance is way too expensive."

32
 Yes, the cost of insuring a museum's entire collection is prohibitive, but
thieves don't normally steal the entire collection. They only steal part of it, and
usually a pretty small part. So insure only a part of it. Theft insurance covers
"incidents," not specific works of art, unless the insured specifies individual
coverage for specific works of art in the policy. In other words, if you purchase
theft insurance, you're insured for the coverage amount no matter what gets
stolen. You may not recoup the entire amount of the loss, but at least you'll have
something.

"But insuring even our few most valuable paintings is still too expensive."

So that's a rationale for not insuring anything? How about this idea-- pay
for as much insurance as you can afford, maybe $1,000,000, maybe
$10,000,000? That way, if art gets stolen, at least you have enough money to
hire top quality private investigators to try and recover it, get publicity for the
theft, or perhaps even pay a ransom. Or use the money to buy a state-of-the-art
security system for your museum (or gallery or private collection) so that theft
doesn't happen again. Forget about whether or not art is replaceable or unique or
iconic; receiving compensation for a theft is what counts, and using that
compensation to either recover the art, offset the loss in revenues that may result

33
from the art being stolen, or make life more difficult for people who steal art, so
difficult, hopefully, that many will stop stealing it.

THE WORLD'S LEADING INSURER OF FINE ART AND

COLLECTIBLES
AXA Art Insurance Corporation (AXA Art) was founded in 1987 to
address an urgent need: discerning, affordable insurance for fine art and
collectibles.

We are insurance and art professionals devoted to the treasures of our

culture - to protecting their owners against financial loss and preserving these
objects for future generations.

AXA Art is the only globally operating specialty art and collectibles
insurance company offering tailor-made coverage solutions for private and
corporate collections, museums, galleries and artists. Due to its global presence
and network of art experts deeply woven into the global arts community, AXA
Art maintains an in depth knowledge into the values and trends of the
international art market. AXA Art not only helps its clients to protect their assets
it also provides expert advice regarding all aspects of managing a collection
including loss prevention, mitigation and conservation.
Axa-Bharti in joint venture for art insurance in India
Art insurance from Axa-Bharti

The speciality business of art insurance will come to India, An Axa-

Bharti joint venture is set to introduce art insurance business in India. France

34
based Axa owns Axa Art Insurance, which is the world's biggest specialist art-
insurance company. Bharti Axa General Insurance has already commenced its
India operations. It may be noted that the joint venture partners have floated an
asset-management company and a life- insurance company in India. Bharti
Telecom is owned by Sunil Mittal.

Kim-Soon Chua, General CEO of Bharti Axa General has announced that
the company is in the lookout for third-party administrators for the health
insurance products. Motor insurance is also on the offering from the company.
He has also added that given the regulatory nod the company will come up with
a host of new insurance products.

8 Aug 2008, Bharti Axa General Insurance announced its commencement

of operations. Although the main focus of the non-life company will be the
tradition lines of business, it has received some informal enquires on art
insurance from brokers.

In India, art owners have had bad experience with conventional insurers
who have rejected claims for minor damages to art work on ground that there is
no financial loss.

35
PRODUCTS & POLICES

At AXA Art, we pride ourselves on an individual approach to each risk;

therefore, we welcome you to discuss particular requirements you may have.

Personal Fine Art and Collectibles Coverage

We understand the collector's passion and desire for expert service,
responsiveness and absolute confidentiality. We cater to those needs while
writing policies that are as individualistic as the collectors themselves. Because
we understand the risks involved far better than a non-specialist insurer, we can
generally provide important benefits. For example, we can often be flexible in
our rating for certain large collections based on one probable maximum loss,
providing the insured with sufficient coverage yet at a significant cost savings
over less sensitive plans. Our underwriters are highly qualified fine art and
collectibles professionals who will understand a collector's needs and the many
insurance options open to them.

Exhibition Coverage
As the world's leading fine arts and collectibles insurer, we thoroughly
understand the many complex and delicate issues involved in exhibiting,
borrowing, handling and shipping fine art. Our coverage is genuinely worldwide
and as flexible as you wish. It is generally wall to wall — that is, starting when
it is removed from its place of residence until it is returned — and covers just
about everything in between but government seizure or nuclear hazard. Because
we understand the risks involved, we can provide virtually any type of coverage
imaginable — at extremely competitive rates.

Museum Coverage

36
 We are insurance and art professionals and we understand the many
complex and delicate issues involved in exhibiting, conserving, and handling
and shipping fine art, including objects from a museum's collection as well as
objects on loan. We are a large-capacity insurer and our underwriters understand
that museums have to contend with large volume and small budgets. We are
renowned to be creative and flexible to accommodate those we insure. Working
as a team, our underwriters share their expertise to bring forth the very best
solutions for comprehensive policies — and most of all achieve important cost-
efficiencies for the institutions as well.

Corporate Fine Art Coverage

We are experts in the insurance of fine art and collectibles and we
appreciate the numerous benefits of a corporate collection to a company's well-
being and corporate culture. You will find that we thoroughly understand the
many complex and delicate issues involved in handling a large collection. In
addition to broad, worldwide coverage we offer automatic coverage on newly
acquired objects of up to 25 percent of the total policy limit with a 90 day-
reporting obligation. Our coverage is extremely flexible — we welcome small
and large collections and tailor our terms and conditions to fit the needs of those
we insure.

Fine Art Dealer Coverage

Our focus on fine art and collectibles allows us to better serve the specific
needs of those we insure. Our underwriters follow collecting trends and
fluctuations in the art market. They understand that galleries are in the business
of installing and de-installing shows at short notice. We are usually able to bind
coverage on both large and small risks over the telephone. Because we share a
collector's interest in and passion for fine art and collectibles and understand the

37
risks involved, we can provide virtually any type of coverage imaginable — at
extremely affordable rates.

POLICY PROVIDED BY AXA ART INSURANCE CORPORATION

1) FINE ARTS INSURANCE POLICY:-

A. GENERAL DESCRIPTION OF FINE ARTS POLICY

This Section addresses the risks covered under the University’s Fine Arts
Insurance policy. The coverage described below is a summary of the Fine Arts
Insurance policy; however, it is only to be used as a guideline and is not
inclusive of all of the terms, coverage, exclusions, limitations and conditions of
the actual insurance policy. Specific questions and discussions regarding
coverage should be addressed through Campus Risk Management or the Office
of Risk Services

B. NAMED INSURED

The Regents of the University of California, all corporations,

partnerships, joint ventures, organizations, and other entities, as have existed or
as now or may hereafter exist, or for which it is required to or has agreed to
maintain insurance, including any affiliated, associated, allied, and subsidiary
entities.

C. TERRITORY

Coverage is provided worldwide, except for the following countries:

Israel, Iraq, Iran, Afghanistan, Albania, Bulgaria, Libya, Liberia, Cuba, The
Czech or Slovak Republics, Hungary, Poland, or any of those territories
formerly comprising and known as the Union of the Soviet Socialist Republics
and the former country of Yugoslavia.

38
 The countries listed above are excluded as a result of the known existence
of art theft rings and the high frequency of art theft.

D. LIMITS OF INSURANCE

Permanent Collections and Exhibits

$50,000,000 at any campus location (per loss)
$20,000,000 at any other location or in transit
$20,000,000 earthquake aggregate per campus
$50,000 sub-limit for film – Property of Others

Foreign Transportation and Exhibits

$5,000,000 any one loss

E. DEDUCTIBLE
$1,000 - Each claim for loss or damage separately occurring
$10,000 - Earthquake (each and every loss)

F. COVERED PERILS

1. Permanent Collections and Exhibits

All risks of physical loss or damage from any external cause,
except as excluded.

2. Property in Transit
All risks of physical loss or damage from any external cause,
Including War Risks for Overseas Transit.

39
2) JEWELLERY INSURANCE POLICY:-
Jewellery Insurance cost:-
The cost implication for the absolute cover and peace of mind depends on
the individual jewellery pieces. The rates are calculated on the value which is
accompanied by the valuation certificates.
The lack of competition and transparency in this misunderstood business
has led many families to pay well above the odds for jewelry insurance.
Is your jewelry insurance carrier charging a rate close to 2% of the
insured values? Is the same true for your art insurance carrier? If so, you are
paying far too much for coverage options that are most likely limited.
The lack of competition and transparency in this business has led many
families to pay well above the odds for jewelry insurance and art insurance. In
some cases, the premiums charged are several times greater than the proven cost
of the risk.
Jewelry & Art Coverage
PURE provides coverage on a worldwide basis. Covered losses include
fire, hurricane, mysterious disappearance and theft.
We cover a wide range of valuable articles including:
 personal jewelry
 fine art
 collectibles
 coins, stamps, silverware
 wine

40
Losses
In the event of a total loss to a valuable item, we provide market value up
to 150% of the item’s scheduled amount or 25% of the blanket amount.
For example,
If you have $500,000 in jewelry, but you only travel with up to $200,000,
if you choose the Off Premises Jewelry Loss Limitation, you are covered outside
of your home up to $200,000. In the event of a total loss to your jewelry inside
your home, you are covered up to $500,000.

3) PUBLIC ART INSURANCE POLICY:-

How Much Does it Cost?

General liability policies for most public art projects have been between
$425-525. Artwork coverage is based on the amount of the commission and
tends to cost anywhere from $300-600 (assuming the commission is between
$10K and $100K).

How Long Does it Take?

We try to get you a quote within 3-5 business days, though it can take
longer. If you like it, you can purchase the policy instantly online. You can then
request certificates as proof of coverage through our website.

Is there a deductible?
For the liability policy, no! For the artwork, yes! It's $1000 unless the
damage is due to earthquake, hail, or wind, and then it's $10,000

What are the limits?

$2 million general aggregate (the total that the insurance company will
pay out); $1 million each occurrence; $1million personal and advertising injury;
$300,000 fire damage legal liability; $10,000 medical expense coverage per
occurrence; and $1,000,000 for rented vehicles

41
What can be insured under these policies?
This insurance covers static works of visual art (sculptures, mainly) that
are in areas accessible by the public.
4) ART GALLERY INSURANCE POLICY:-

An Art Gallery Insurance Policy includes:

 General Liability Insurance to cover your commercial liability and

premises liability
 Business Property Insurance for physical assets, such as contents,
improvements to your space like decorations and furnishings and
 Fine Art or Artwork
 Property in Transit
 Fine Art Valuation for Artwork and Works of Art*

The package insurance policy may also cover loss of business income and
extra expense resulting from a covered loss.

The General Liability insurance coverage of an Art Gallery Insurance

Policy is comparable to a typical Commercial General Liability (CGL) policy,
providing protection against claims of bodily injury or property damage for
which your business may be liable.

In addition an Art Gallery Insurance policy may include, or you may be

able to select as an option:

 Outdoor Sign Insurance

 Money and Securities Insurance
 Employee Dishonesty Insurance
 Water Back Up Insurance

42
 Not all businesses are eligible for an Art Gallery Policy.

Characteristics typically not eligible for Art Gallery Insurance include:

 Large Premises Operations like Museums or Auction Houses

 High risk or highly specialized operations with property values in excess
of $10,000,000
 Majority of business conducted off-premise that rely heavily on outdoor
events, special functions or high media exposure activities
 Requires liability limits higher than $10,000,000

What is the average cost of Art Gallery Insurance?

Although we are often asked this, there is no set answer.  Every Art
Gallery has different needs, different property values, and different coverage
requirements.  Asking this is similar to asking "What the average cost of art
work?"

* Many Business Insurance policies offer ACV or actual Cash Value for
Business Property VS. agreed value or RCV, Replacement Cost Value.For
Artwork, ACV will pay the Actual Cash Value of the Art.  This equates to the
cost of the materials i.e. canvas & paint.  We can cater your coverage to offer
RCV or Appraised value to properly insure your Art Gallery Insurance
Coverage.

Typically, for the coverage offered, an Art Gallery Insurance policy is

very competitively priced, however remember the Art Gallery Insurance Policy
does not provide coverage to items such as Workers' Compensation,
Professional Liability Exposures or Commercial Auto Insurance, however they

43
are most certainly available and our agents will gladly assist you in custom
tailoring your insurance coverage to cater to your needs.

5) THEFT INSURANCE POLICIES:-

How much does Theft Insurance cost?

We have a large book of clients with many different insurance companies, so we

will be able to find the most beneficial policy with the cheapest premiums for
your business

Typical Claims incurred on Theft Insurance policies

The most common and expensive claims come from burglars breaking
into your premises and stealing stock. The tricky part is to remember that your
items can also be stolen whilst in transit or at the home of employees etc.  Let us
advise you on common claims and how our clients were protected against all
forms of theft.

Considered along with Theft Insurance:-

It should be noted that your policy does not include coverage for loss or

damage from fire or explosion, loss or damage of glass or loss or damage to any
money, currency, cheques, current stamps, certificates, postal orders and so
forth. Please note this does not include electronic equipment, documents,
manucripts, business books, computer system records and media, plans, designs,
patterns, models or moulds.

It is very important that you have additional coverage and we can

certainly tailor package everything to your needs.

44
 MAKING A CLAIM

AXA Fine Art Insurance

In the event of a loss our priority is to provide advice and professional

assistance at the earliest opportunity. Prompt action is essential. We need to be
informed through the brokers immediately so that steps can be taken to prevent
further damage or to alert the relevant authorities in the event of loss. In many
cases, please complete a Claim Report Form first. We may arrange to visit you
to discuss the details and circumstances or, if appropriate, we may appoint a
specialist art loss adjuster. We are a founder member of the Art Loss Register.
These computerized art indexes was set up to log stolen works of art and
compare their description against auction catalogues world-wide. Any stolen
items insured with us are automatically logged on the system free of charge—a
considerable saving for clients.

1) Fire/Smoke Damage

Do not attempt to clean anything. We will appoint professionals.

2) Theft/Burglary

List all the items that you think have been stolen. We will notify the
Art Loss Register on your behalf. If you have photographic records of the
stolen items, we will publish these in the trade press.

1. Call the police immediately.

2. Notify your broker.

45
 3. Make photographs of the stolen items available to both the police
and us.
4. Alarms should be reconnected as soon as possible.

3) Water Damage

It is essential to act quickly as secondary damage and bacterial

growth can begin within just a few hours.

If you have a leak, arrange for a reputable, registered plumber to

visit as soon as possible. In the meantime, try to stem the flow or catch leaking
water in a bucket.

1. Carefully remove vulnerable or affected artworks to a dry location.

2. Carefully blot wet furniture and open any drawers or doors.
3. Mop and blot up water from floors.
4. Use fans and dehumidifiers to assist the drying process.
5. Move small items into a controlled environment.
If furniture cannot be removed immediately to a controlled
environment, place small wooden blocks or aluminum foil under furniture
legs and open drawers to help the drying process.

4) Storm Damage
If damage has been caused to the roof, arrange for a reputable
roofer to visit at the earliest opportunity to secure and seal the damaged area.
Carefully remove vulnerable artwork and/or musical instruments
from the exposed area. Useful information to have in hand when calling us:
1. Policy No.
2. Details of what has happened and when
3. List affected items

46
 4. Severity of the damage/loss
5. If items have been removed from home and where they are now
We are then in a position to advise on the actions which should be taken
or arrange for one of our representatives to visit you to give advice.

CURRENT SCENARIO

Art fairs like Basel as well as similar events around the world are prime
opportunities for insurers that specialize in covering fine art to rub shoulders
with clients, court prospective ones, and maybe catch a glimpse of some of the
artwork they cover.

Travelers have been a sponsor of the Pulse Miami Contemporary Art Fair,
being held at the Ice Palace in Miami through Sunday, for four years. A
contingent from Chartis' fine art insurance group is here this week and Katja
Zigerlig, who heads the group, attends all the premier art shows and fairs.

``There's great opportunity in Miami. It's one of the places where people
take the pulse of the market,'' says Andrew Gristina, director of fine art
insurance at Travelers, who is here for the fair with Rebecca Glenn, Travelers'
underwriting vice president for this division.

Insuring fine art ``is a much bigger market than it was 20 years ago. Not
just because values are higher, but because there's more awareness of fine art,
there are more collectors, more museums,'' says Mike Roney, a vice president at
Fireman's Fund.

Collectors just can't add coverage for their art or antique pieces to their
homeowners policies nor can dealers expect to cover works they exhibit with
their commercial property insurance. Specialized coverage is required.

NICHE BUSINESS

47
 Insuring art -- whether it be paintings, sculpture, antiques, jewelry,
antiquities or other rare items such as coins and stamps -- is a niche business in
the insurance world. Only a handful of companies go after this market, including
Travelers, Lloyds of London, Chubb, Fireman's Fund, which is a unit of Allianz
SE, the world's largest property insurer, and Chartis, which includes the
personal, commercial and foreign insurance units of AIG.

The insurance contracts for fine art aren't standard. Most often they're
negotiated by the insurer and the collector or gallery. Because works of art aren't
items that can be easily replaced, if at all, coverage is based on the appraised
value of the art -- usually a recent appraisal. That's the amount an insurer will
pay out if an artwork is damaged, lost or stolen. Insurers can cover an individual
piece or provide a blanket policy of, say, $5 million to collectors, gallery owners
or exhibitors.

An insurer won't pay more than the agreed value even if the market value has
increased, says James Jenson, a restoration specialist and insurance agent who
runs Artsure.com, a website that provides information on covering art, antiques
and crafts.

RATES ARE STABLE

Insurers say there is plenty of capacity to insure art, whether it's in a

private collection, with a dealer or a gallery. Rates are stable. However, rates
could be higher if a collector needs extra coverage to deal with earthquakes or
hurricanes.

Fine art insurance isn't required, like auto or homeowners coverage. ``But
like dental or healthcare coverage, you want to buy it in advance to know you're
covered,'' says Zigerlig. Chartis provides coverage for artwork valued at about
$1 billion.

48
 Insurers feel much better when the art pieces they cover are in
experienced hands.

QUESTIONNAIRE

MANAGER:-

1. From how many years your company provides this art insurance policy?

Ans: - ________________________________________________________
2. Which type of marketing strategies you adopt for attracting customer?

Ans: - ________________________________________________________
3. Which types of policy do you provide to artiest?

Ans: - ________________________________________________________
4. In which way you do the valuation of customer painting or art?

Ans: - ________________________________________________________
5. How you calculate the premium of the policy?

Ans: - ________________________________________________________
6. In which way you apprise the customer art?

Ans: - ________________________________________________________
7. Which point you considered while framing the policy?

Ans: - ________________________________________________________
8. If any damage is occurred then what will be your action?

Ans: - ________________________________________________________
9. What is % of people who insured art?

49
Ans: - ________________________________________________________

CUSTOMER:-

1. Are you aware of art insurance?

Ans: - ________________________________________________________

2. Which type of painting you have?

Ans: - ________________________________________________________

3. Have you insured your panting? If yes, from which company?

Ans: - ________________________________________________________

4. What is the maximum cast of your painting?

Ans: - ________________________________________________________

50
 FINDINGS

Axa-bharti general insurance company was started providing art insurance

in India from 2008. It is a first insurance co. who provides the art insurance in
India. The recent manager of axa-bharti general insurance company, in Fort
branch, is GIRISH GOPINATH, & sales manager is YOGESH MEHRA as
they do not have any branch in India.

They provide various types of products like fire insurance, water

insurance, and earthquake insurance. They also provide basic coverage to
customer such as handling coverage, fire coverage, and flood coverage etc.

They adopt various types of marketing strategies like, advertising on

hoardings, pamphlets, mouth to mouth publicity, broachers etc.

They make the valuation & appraisal of art by considering the following
factors which are as follows:-

1) Geographical factor.

2) Age factor.

1) Geographical factor:-
In this factor insurance company check the place of the art &
Decides the value of the art.
For e.g.:- In Gujarat for historical places insurance company may
check for earthquake intensity & decides the risk & provides the
insurance.

51
 2) Age factor :-
In this factor insurance company check that how old the art is. And
according to oldness of the art value is decided.

They decide the premium of the art according to the IRDA Rating.
For e.g.:- If the painting worth Rs.10, 00,000 then its premium is Rs.20000.

CUSTOMER AWARENESS ABOUT ART INSURANCE

52
 CONCLUSION

From the above survey, I have observed that 30% awareness created in art
insurance. This is comparatively low with respect to developing countries.
After my visit to art gallery I have observed that even officials in the art gallery
such as painters’ artist are not aware of art insurance.

There is need for the artist in India to be updated with the knowledge of
procedure for art insurance. From 22 odd insurance company along with LIC
only companies were founded to be engaged in art insurance.

It is surprise that India having a huge treasure of art & very creative &
talented artiest then also they are unaware to protect their art & talent for the
purpose government should take initiative. They should implement more
consumer awareness programmed for art insurance. For that they can conduct
seminar’s make advertisement in Newspapers, radio, T.V., Magazines.

53
Bibliography:-

1] Book: - Insurance Product (Including Pension

product)

-By Dr. S. A. Dave.

-By Dr. T. Raju,

Website:-

www.google.com

www.wikipedia.org

54