A Project on

ART INSURANCE

BACHELAR OF COMMERCE

BANKING & INSURANCE

SEMISTER-VI
FOR THE ACADEMIC YEAR 2017-18

Submited By

MS. PRANOUTI UTTAM GHOSALKAR

ROLL NO.

UNDER THE GUIDENCE OF

Mrs. SHRUTI SHONCHE

V.P.M. R.Z. SHAH COLLEGE OF ARTS,SCIENCE& COMMERCE

Mithaghar road, Mulund (E) Mumbai-400081

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DRCLARATION
I am PRANOUTI UTTAM GHOSALKAR student of T.Y.BCOM
Banking & Insurance Semister VI (2017-18) hearby declared that I have
completed the project on Art insurance.

The information submitted is true & original in the best of myknowledge.

Signature of student

PRANOUTI U. GHOSALKAR

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ACKNOWLEGMENT
I want to thank the following people for making this project a success.

They mean a lot to me and have this project into existence

principal Mr. MADHUSUDAN RAJE for following me to frame my

talent by allowing me to present my project front of you

Mr. OM DEWANI our course coordinator for providing me consistant help

and support while prepairing the project.

My project guide Mrs SHURUTI SHUNCHE who has given shape to this
project by giving the required guidance to prepaire the project as per the
requirement of university

I would not like to forget my parents who have played a vital role behind
the scenes so that project would be worth presenting in front of you.

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 EXECUTIVE SUMMARY
Art is a diverse range of human creativities in creating visual auditing or
performing artifacts artworks, expressing the author’s imagination or
technical skill, intended to be appreciated for their beauty or emotional
power. In their most genral from these activities include the production of
works of art, the crticim of art.

Art normally insured based on the recent appraisal. The apprsial must be
done by qualifies person. The owner can insured the item at the appraisal
value or a lower value but not ahigher value. The insurance company and
the owner agreed values a legal and binding term. The insurer will not pay
more than agreed value even if the market value can increased.

Fine Art insurance is know professionally as inland marine insurance. This

is very old term. Inland marine insurance has developed over centuries
with its own rules and limits. It has become the standerd insurance for art,
antiques, jewellery and rare items that are not replacement some like it
contemporary while others might be more convin masters, but whatever
you taste in art when stays the same is the need to ensure your home
insurance will cover you in evevnt that any of your art is stolen or
damaged. However, your art is not often covered by standard home
insurance. Many people believe they can to either take out separate art
insurance or lock their art in safe to get the pieaces of mind they need.

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 OBJECTIVES

1. To understand the concept of Art insurance.

2. To study of role art insurance

3. To know the different types art insurance offered by the company.

4. To ascertain the profile and characteristics of potential buyer.

5. To have an insight into the attitude the behaviour of customers.

6. To Product an excutive service report to upgard service

characteristics of art insurance policy.

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 LIMITATIONS
1. Lack of data available about art insurance.

2. During making this project some difficulties are assumed like non
corporation from respondent.

3. There are some problems are assumed in collection of data about art
insurance.

4. Its become a difficult to explain Art insurance because art is wide

concept,

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 SCOPS
1. Knowing the various aspect related to the art insurance policy.

2. Making the posiblities of enlarging the scope of the art insurance.

3. It has been observed that india art maker is witnessing a boom and
then too unprecedented.

4. Art insurance yet to take off in big way in India.

5. This project evaluates future scope of art insurance.

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RESEARCH METHODOLOGY

PRIMARY DATA

Information will be collected by visiting insurance company. Repairing

questionnaires and taking interviews of insurance employees to collect
detailed information.

SECONDARY DATA

Information will be collected from internet , reference book, newspaper,

magazine or special books and official of the organization etc.

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INDIAN VIEW
The India rich are warming up to insuring their art and valuable collections
thanks to the value- added service provided by insurers and their flexibility
in accepting ‘agreed value’ worth customers insuring 350 pairs of shoes
but instance of high-net-worth customers ensuring350 pairs of shoes but
extraordinary covers are nothing compared to what AIG insurers in the US.
Valuables include $13 million worth of shrunken heads a 15th century book

Written on human skin and frozen are installation make in the artist blood

The capability for underwriting art insurance was brought to India by

AIG, which has joint venture general insurance company with the Tata
Group. What is now prompting the rich insure their collection is the
availability of ‘agrees value’ policies based purely an expert valuation and
the willingness of insurers to provide cover without calling for invoices or
other such proof. Also, most buyer are choosing to insure their valuables
not because they cannot afford the loss because of the support they get in
restoration or replacement of valuables.

In the last four years, Tata AIG has been covering are and other valuables
collection of hundreds of rich Indians and has a sum insured of cover
Rs.500 corer. Customer include ultra-high-net-worth businessman to film
stars and the insurer has already paid out a handful of claim for theft.

Speaking to TOI, Ronald fame, global head of privet collection at AIG,

said the company was offering products that were never before available
and the mainstay of its offering was the risk management service that came
along with the policy. The company manages to provide expert advice
because of the talent has recruited from the art world. For instance, rand
silver, global director of art collection management is an art expert
formality with British auction house Christie’s.

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GLOBLE VIEW
Art museums buy less insurance that widely believed. In many countries
they do not get government help to insure their collections, so some do not
insure at all or else they insure only part of their collection. Edward munch.
The scream for instance was not insured when it was stolen in 1994 from the
national gallery in Oslo. It was later recovered. National musicians in Britain
may not buy insurance. They are “self-insured”, which means they must
settle claims out of already overstretched budgets. In case theft a museum
could be left with an empty space on its walls, or, put more politely, with a
“loss to the nation”

Independent museums in Britain may buy insurance. Yet a report by the

museums and galleries commission found that a large proportion is
inadequately insured, partly because they are inexperience in risk
management, and partly because of lack of funds.

As risk go, insurers think of fine art attractive one. Transport is the biggest
risk, theft the most glamorous. The first can be reduced by expertly packing
and shipping sculptures or paintings. The second is limited by the problems
in fencing a famous Picasso or Monet. In addition, few connoisseurs think
of damaging a work of art as opposed to, say their spouse purely for the
insurance claim.

Even so, insuring art has its pitfalls. Insurance are rare, but they can be
expensive. This is particularly true when an insurance policy it is
compensate works at their current market value rather than at a pre-agreed
value.

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Chapter 3 insurance
What is insurance
Purpose of insurance
Kinds of insurance
Principles of insurance
Insurance broker

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 WHAT IS INSURANCE
Insurance is a means of protection from financial loss. It is a form of risk
management primarily used to hedge against the risk of a contingent,
uncertain loss.

An entity which provides insurance is known as an insurer, insurance

company, insurance carrier or underwriter. A person or entity who buys
insurance is known as an insured or policyholder. The insurance transaction
involves the insured assuming a guaranteed and known relatively small loss
in the form of payment to the insurer in exchange for the insurer's promise
to compensate the insured in the event of a covered loss. The loss may or
may not be financial, but it must be reducible to financial terms, and usually
involves something in which the insured has an insurable
interest established by ownership, possession, or preexisting relationship.

The insured receives a contract, called the insurance policy, which details
the conditions and circumstances under which the insurer will compensate
the insured. The amount of money charged by the insurer to the insured for
the coverage set forth in the insurance policy is called the premium. If the
insured experiences a loss which is potentially covered by the insurance
policy, the insured submits a claim to the insurer for processing by a claims
adjuster. The insurer may hedge its own risk by taking out reinsurance,
whereby another insurance company agrees to carry some of the risk,
especially if the risk is too large for the primary insurer to carry. Methods
for transferring or distributing risk were practiced
by Chinese and Babylonian traders as long ago as
the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling
treacherous river rapids would redistribute their wares across many vessels
to limit the loss due to any single vessel's capsizing. The Babylonians
developed a system which was recorded in the famous Code of Hammurabi,
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1750 BC, and practiced by early Mediterranean sailing merchants. If a
merchant received a loan to fund his shipment, he would pay the lender an
additional sum in exchange for the lender's guarantee to cancel the loan
should the shipment be stolen, or lost at sea.

PURPOSE AND NEED OF INSURANCE

The fundamental purpose of insurance is to spred out the risk of individual

investments among many parties to reduce the risk to any individual
members of the pool in the event that an investment fails. The FDIC for
example claim in its mission statement to “ maintain stability and public
confidence in the nation financial system” it dose this by

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