Art of fact: Insurers find life on canvass
The insurance sector is making a foray into the art market. Nationalised companies like National Insurance and Oriental Insurance have started offering covers for Indian modern and contemporary art pieces.
By Ashoke Nag & Debjoy Sengupta, TNN |
KOLKATA: It’s an arty shield. The insurance sector is making a foray into the art market. Nationalised companies like National Insurance and Oriental Insurance have started offering covers for Indian modern and contemporary art pieces. Even private insurers like ICICI Lombard and Bajaj Allianz have begun exploring the art scenario.
“We began offering tailormade policies covering paintings and artworks for the last few months. A panel of valuers is attached to us on a contractual basis. They are in charge of appraising the work, evaluating risk factors involved, calculating the value and deciding on the sum assured and the premium,” Ramadoss, chairman and managing director, Oriental Insurance, told ET.
He said that Oriental Insurance has covered art events stretching between one and 10 days. Artworks in transit are insured by what is dubbed as a marine policy. At the same time, the ambit of a household policy, which relates to valuables in individual homes, has also now been widened to include art objects like paintings.
“The premium ranges from 2-5% of the value of the painting,” Mr Ramadoss said. National Insurance, which has also stepped into the art scene, is taking a selective approach to insuring art.
“We don’t have an off-the-shelf policy for art insurance. The policies are offered based on the profile of the client and the artist and the quality of the work. As things stand, the company, at present, is only insuring works by renowned and better known artists,” said V Ramasaamy, CMD, National Insurance.
Private sector insurers are also taking a plunge in the burgeoning art mart. ICICI Lombard, the largest private insurer, has taken a shot at this emerging area. Sandeep Bakhshi, MD and CEO of ICICI Lombard, observed that though at a nascent stage now, the art segment harboured a long-term potential and is bound to grow in the years ahead.
“For us, it is reinsurance driven since we pass on a significant portion of the risk overseas,” Mr Bakhshi said.
Bajaj Allianz is also carving a niche in the realm of art. “Premiums depend upon factors like care taken by the client to protect and preserve the painting. The extent of exposure that private companies are keen to take hinges on their risk appetite,” Bajaj Allianz’s official spokesperson added.
“This is a major change. Earlier, nationalised companies were only covering the material cost of a painting which was insignificant. Now, valuers from insurance companies or a leading gallery can certify the true value of a painting, by the insurer. It’s becoming quite smooth and transparent.
Insurance is helping us to borrow works for an exhibit from artists or collectors. We can also safely transport pieces for clients. Those in transferable jobs can insure their collections when they are moving one city to another. And, one can stock insured artworks at home,” an art market source said.
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