Fine Art Insurance

Individuals and Institutions acquire, maintain and exhibit great pieces of art acquired at considerable value. Since these art pieces are rare and original, they attract large exposure in terms of value due to accidental loss/damage or theft. Therefore there is this need for Arts Insurance policy, both for individuals as well as for institutions.

Salient Features

This is a tailor made insurance programme which can be customized to suit the Insured best.

Depending of the Insured, following types of coverage are offered:

  • Personal fine art and collectibles coverage
  • Exhibition coverage
  • Corporate fine art coverage
  • Fine art dealer coverage
  • Historic property programme

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. Hence this insurance is on Agreed Value Basis.

Scope of Cover

Art Insurance provides “All Risk” cover against the following:

  • Accidental physical loss
  • Accidental physical damage
  • Theft

These are offered on Agreed Value Terms subject to specified exclusions.


Following are the main exclusions under the policy:

  • Natural ageing, gradual deterioration, inherent defect
  • Reframing, retouching
  • Humidity, exposure to light
  • Theft / dishonesty committed by or in collusion with Assured / representative
  • Loss / shortage discovered whilst taking inventory
  • Loss / damage to property unless its entered in the Assured’s stock records
  • Loss / damage at any trade fair unless specifically notified and agreed by Insurer
  • Loss / damage in or on unattended vehicles
  • Electrical or mechanical fault or breakdown
  • Deductible stated
  • Consequential loss
  • Mysterious disappearance / unexplained loss
  • War and nuclear perils
  • Confiscation by national / government authorities

As this insurance is on Agreed Value Basis, the basis of settlement of a claim is of prime importance.

The basis of settlement of a claim is

In case of total loss

  • For items which belong to the Assured, the value specified in the Schedule.
  • For items sold but not delivered to the purchasers, the selling price.
  • For items bought on behalf of the Assured’s client, the purchase price plus any fee or commission pre-agreed and made in writing.
  • For items in the care, custody or control of the Assured which belong to third parties, the lesser of the market value immediately prior to the loss and the Assured’s legal liability to the third party.
  • For fixtures and fittings, the lesser of replacement cost after an allowance for depreciation or the cost of repair.
    • Following payment of the full amount insured, the Insurer will become the full owners and reserve the right to take possession of the item.

In case of partial loss

  • Expense of restoration plus any resulting depreciation in value.

The above are subject to a maximum of the agreed value of the item.


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