CHAPTER NO.

1 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 insurers incurring the risk of 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 affectthe 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.

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 cant 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 doesnt 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.

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

1. 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.

2. GENERAL INSURANCE:

All the types of insurance are called general insurance or non life insurance.

 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. 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. 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 employers liability for an injury or death of a worker while performing duty etc. 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.

 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.

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. The fundamental principles are: 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 insurers 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.

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.

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.

 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.

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.

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 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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CHAPTER NO.2 ART

Art is a vital part of each nations 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,

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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.

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.

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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?

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 dart, objects of virtue, paintings, sketches, prints, philatelic, photography, political memorabilia, porcelain, pottery, ceramics, glass, jade, scientific instruments, statues, sculptures, sporting memorabilia, toys and more.

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 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 collectors 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! 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.

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 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.

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CHAPTER NO.3 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:1. Fine art insurance 2. Jewelry & Art Insurance 3. Public Art Insurance 4. Art Gallery Insurance 5. Theft Insurance

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

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covers and blanket covers. With scheduled policies, every item is independently listed on the policy for a confirmed insured amount.

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

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policy. Otherwise contact the artwork insurance companies for more coverage of larger collections.

Jewelry & Art Insurance: 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

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designer pieces are damaged or stolen, one would prefer the claim to be handled and settled in the most professional manner.

Public Art Insurance: 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.

Art Gallery Insurance: 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.

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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.

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 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.

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 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. 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

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advantages that coverages under a homeowners plan don't. The most common advantages are no deductibles, coverage of recent purchases and lessexclusion. 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 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.

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CHAPTER NO.4 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 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 25

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 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

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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), 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).

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CHAPTER NO.5 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. 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 items value. In terms of value, both fair market and retail replacement values are examined depending on the appraisals 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 items 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 companys value conclusion will convince your insurance agent

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why your art work is unique and irreplaceable, and why it should be protected and preserved properly. Companys 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 cant 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. Companys 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. Companys 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.

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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. Companys 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 report prepared by Companys 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 fastmoving arena in which expert knowledge and advice are essential.

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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.

3. 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 homeowners 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.

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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. 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.

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CHAPTER NO.6 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.

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

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CHAPTER NO.7 INSURING YOUR ART

"The Scream" and "Madonna," two major paintings by famous Norwegian artist Edvard Munch, were stolen several years ago from the Munch Museum 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

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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." 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 36

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

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CHAPTER NO.8 CASE STUDY

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 AxaBharti joint venture is set to introduce art insurance business in India. France based Axa owns Axa Art Insurance, which is the world's biggest specialist art-

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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.

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 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

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we understand the risks involved, we can provide virtually any type of coverage imaginable at extremely competitive rates.

Museum Coverage:

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 wellbeing 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 dayreporting 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.

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 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 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 Universitys 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

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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. 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 $20,000,000 $20,000,000 at any campus location (per loss) at any other location or in transit earthquake aggregate per campus

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$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.

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2.JEWELLERY INSURANCE POLICY:-

a) 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.

b) 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

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c) Losses

In the event of a total loss to a valuable item, we provide market value up to 150% of the items 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).

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 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

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.

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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 Not all businesses are eligible for an Art Gallery Policy.

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

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4. 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.

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 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 chargea 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.

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1.Call the police immediately. 2. Notify your broker. 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.

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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 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.

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CHAPTER NO.9 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.

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 NICHE BUSINESS: 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.

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

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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? Ans: - ________________________________________________________

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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: - ________________________________________________________

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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.

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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.

Awarness of Art insurance 30%

Unawarness 70%

CUSTOMER AWARENESS ABOUT ART INSURANCE

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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 seminars make advertisement in Newspapers, radio, T.V., Magazines.

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Bibliography:1] Book: - Insurance Product (Including Pension product) -By Dr. S. A. Dave. -By Dr. T. Raju, Website:www.google.com www.wikipedia.org

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