An insurance policy is a contract taken for the indemnification of any financial loss. In the context of art, the most invaluable possession of a human being, most collectors forget to protect themselves against the various damages that an artwork might incur. Art insurance is an absolute essential if you are a private art collector. Physical losses due to fire, burglary and scratches are few of the common risks posed to the artworks. Art insurance provides coverage and protection for various such incidents that could occur to the art collection.
Table of contents:
● What does ‘Art Insurance’ mean?
● What is covered?
● How do you claim damage?
● What are the exclusions?
● Why get art insurance?
What is Art Insurance?
What is the extent of an art Insurance cover?
How can you be eligible for art insurance?
What is the process to claim the insurance amount?
The owner must on the damage of the article immediately notify the insurance company by writing to them or calling up their customer service number
The insurance company will then appoint a surveyor to inspect the validity of the claim. During this process, the insured must fully cooperate with the authority with respect to the provision of required documents.
Various private insurance companies in India claim to acknowledge the reported loss on the same day the report regarding the same reaches the insurance company from the insured.
The insurance company provides considerable compensation based on the agreement that is agreed upon during the signing of the contract. This is done by way of monetary losses, repairs with similar processes being employed to restore the artwork
Documents that are required for the Claim Process
It is pertinent for the insured to possess and present the following documents in the case of initiating a claim:
01. Claim Form
02. A copy of the policy
03. A valid and certified evaluation of the art
04. Even an FIR might be required but this is restricted to the case of robbery
What are excluded from Art Insurance?
01. Damage that occurred during repair, restoration, 02.retouching or any similar alteration processes
03.Natural wear and tear and rust is also not considered by the organisation
04.Damage caused due to some form of nuclear reaction or radioactive contamination
05.Loss arising out of theft occurring due to ut being in an unattended vehicle
06.An unexplained loss of some kind
07.Loss or damage caused due to the poor management of the artwork like exposure to excess humidity, light and extreme temperatures
The loss or damage should be unforeseeable and sufficient precaution should have been taken to prevent the occurrence of such an incident.
Which are the indian companies who offers Art Insurance in India ?
What are the advantages of Art Insurance ?
Few insurance companies in India cover the transit of the art piece from one place to another within the country. This kind of move is usually very feared by art owners because of the delicate nature of the art
Wall-to-wall coverage is provided for the paintings and other forms of artwork that are displayed or can be displayed on a wall
A few policies also include clauses regarding the storage of the artwork which is subject to geographical and territorial limits for business or professional purposes
Damage or losses occurring due to acts of God, like natural calamities including floods, earthquakes, cyclones and other extreme weather conditions are covered under the policy
Art Insurance FAQs
Who is this policy beneficial to?
How to buy an art insurance policy?
How does this policy work during transit of insured art?
What is the value of the insurance and what is the return?
It is always better to be protected against unforeseen circumstances but one must be careful when choosing a suitable deal and must carefully read all the provisions of the policy.