Do the owners of cultural property and intermediaries beginning to emerge sustained interest in the insurance of such objects

Art is increasingly recognized as an effective tool for the investment of funds of citizens and legal persons. And an increasing number of cultural values derived «out of the shadows» private collections, and enters the circulation: they are subject to sale, lease, granted to display, which allows the owner to receive income, are subject to a pledge, made as a contribution to the authorized capital of companies. It is clear that the cultural property owners and brokers begin to form a steady interest in the insurance of such objects.

In Russia insure the collection is not easy. Sometimes it is almost impossible - especially for individuals and on acceptable terms. So the declaration of the insurance of works of art for the most part is considered as promotional stunts. In the words of fear, until the case has not come ...

Insurance products

insurance art collections, paintings, prints, drawings, unique items, tapestries, antiques, art glass, items made of precious metals, precious, semiprecious and podelochnyh (colored) stones and other objects of art relates to property insurance .

a very long time such insurance has a majority of Russian insurers to companies by the general rules and property insurance contracts, which were originally designed for the insurance of household goods, office equipment and goods in the warehouse. In the best case, the rules of insurance is made especially valuable objects of total mass of consumer goods. But even this election and insurance on a single

contract, provided the owner works all the same minimum protection against possible risks, but impose additional responsibilities on him to preserve property and adversely affect the cost of insurance. For example, if the insurance rate for conventional assets averaged 0,25-1,5 percent, the value property is insured at a higher rate: 1,5-2 per cent of the value of property in the year.

Of course, such agreements are concluded on standard terms of property insurance do not take into account the specifics of the insurance and do not cover many of the most probable risks insured and beneficiaries. Therefore, a number of insurance companies abandoned this practice, develop and

approved special rules and forms of contracts (policies) for the insurance of objects of cultural heritage artefacts. Let's see, what are the advantages of this approach to policyholders and beneficiaries.

So, the usual package of property insurance shall include such risks as fire, explosion of domestic gas accident plumbing, heating, sewage and other systems, illegal actions of third parties, natural disasters, falling trees or aircraft battle window and showcases, and other ¹ .

Why is difficult to insure a private collection

problems on the art-insurance market by the owner of a set of values. Despite widespread advertising of insurance products for individuals, and the declaration of top managers, a company with a great deal of fear and very reluctant to do business with citizens. Use of this service can only be elected, especially expensive items for insurance and collections. As recognized by insurers, insurance contracts in private collections, inmates on the rules of insurance of cultural property in their portfolio unit. Basically, these objects are insured as precious objects, but on the standard rules of domestic property insurance.

The reasons for this are many. First, the control will retain its value and to investigate cases of insurance in the home is much more difficult than with curatorial. Second, private client company is a priori not see too good contractors, or even insurance fraud, which are prone to staging insurance cases, for example, to conceal the loss, damage items due to their own carelessness or levity family. The third is to store the majority of cultural values, professional preventive care, finally, for the protection requires special conditions, knowledge and skills that can not all collectors. And in the absence of proper storage conditions, a work of art may be affected: for example, with non-temperature-humidity regimes may rassloitsya or crannied paint on canvas, etc. These reasons and are an obstacle to the insurance of private art collections as cultural property (under the relevant rules and agreements ). In the best case, the client will offer insurance of works of art as precious objects, but the usual conditions of domestic property insurance. And for such insurance is characterized by a lot of reservations, minimizing liability insurer. Insurance premium will be a maximum: up to two percent.

There are insurmountable obstacles and with the insurance of art works owned by the companies and stored in corporate and bank safes. As in the case of Citizens Property Insurance, the insurers believe that insure such facilities under the insurance policy of cultural values is pointless, because their risks are unduly high.

But the standard approach does not cover such risks the owners of cultural property, as the separation or cracking of paint on canvas art. Or a financial risk as the evaluation of the subject correctly. Alternatively, the risk of death, damage to one of the indivisible unity (pair), the loss of the commercial value of one or more items from the whole ensemble (headset, service), though any such breach of unity has a negative impact on the commercial value of things. There is a risk of things due to the depreciation of the risk covered by insurance. For example, by the break canvas tapestry, the appearance of cracks in the pottery insurance reimbursement, the owner of property can restore it. But the commercial value of the object is likely to fall, and remove such items to display as often as before, can not be (any transport - additional stress to the damaged items). Explained that under this insurance in the statement of the insurer of an insured event as specified by the value of the work of restorers, transportation to the restoration of damaged property, travel expenses, the restorer, the cost of materials for restoration, and the monetary valuation of loss of market value. The last component to define very simple: all the same insurance cultural values are still exotic to our service, sustained practice of the losses from the loss of market value is not established, there is no standard approach.

In the carriage of many values must take into account the maximum possible number of risks, sometimes very specific, so to insure such items as goods, albeit very expensive, was unacceptable. In such cases insurance is carried out according to the formula Wall to wall (see «Insurance Product Wall to wall »).

Insurance cultural property insurers often separately stipulate that insurers are not cases:

• deaths and injuries as a result of the restoration, restoration, retouching;


• natural changes (depreciation), dilapidation, the presence of hidden internal defects;


• insects, radiation;


• confiscation, expropriation, seizure, detention and seizure of things, claims by third parties contesting the ownership of these works of art. Such unpleasant incidents occur. For example, are required on the return of any items lost after the revolution and during the Second World War, real or apparent owner, as his heir.

Insurance Product Wall to wall

The risk of loss or damage to cultural property is increasing in the transport and display at the exit. Today, Russian insurers, such as «Spasskiye Gates», «Ingosstrakh», «Renaissance Insurance», «Russia», «Ingosstrakh - Saint-Petersburg», «UralSib», «Standard-Reserve», «East-West alliance», « RESO-Garantia », Transnational Insurance Company and many others, practice the western approach to the property insurance of works of art. The contract lists no insurance cases and cases that are not insurance (the so-called. Approach «of a» or «against all risks»). The standard price for such insurance at standard (very hard) conditions to ensure the safety and security of the facility (see below) - from a half to two percent of the value of the object. Insurance cost objects (objects that are worth over 100 thousand dollars), increasing tariffs and all other things being equal, could take up to 3-3,5 percent (insurers reinsure their risks).

Such insurance coverage may be on the terms «from room to room», «from port to port» and /or from anywhere in the world to the port and /or from a port in any place in the world, including the return of .

Insurance Product Wall to wall ^a , developed by leading foreign insurance companies, to address in one package all the possible risks of physical loss or damage arising for any reason during of the insurance contract, including losses from earthquakes.

This do not cover:

• direct losses caused by the object as a result of the repair, restoration, modification, etc. (This exception does not apply in cases of loss or loss of property as a result of the repair, restoration, modification and the like, if they were carried out by order of the insurance company);


• losses suffered by the insured as a result of damage by insects (moth, bug), as well as losses associated with the gradual wear and tear and /or with the previous defects.

The objects of insurance are paintings, prints, tapestries, valuable carpets, sculptures, objects made of marble, bronze, antique furniture, rare books, antique silver, manuscripts, porcelain and glass items, antique trinkets, brooches, earrings, other decorations, a collection of books, binding of periodicals, photographs, slides and other valuables. These items are insured and when they are preparing to go (take off from a permanent place - from the wall, with racks, pedestal, pack, transport, cargo), and at the time of transport (often by special vehicles), and during storage, and during unpacking, installation, exhibiting and dismantling ... until the facility will not take a permanent place of «home». As you can see, the insurance coverage extends to all modes of transport by land, air, water, for the period of stay at the property, transfer points in the space for temporary storage, packaging, accumulation for subsequent transportation in space,

belonging to the owners of goods in warehouses, as well as in the premises belonging to other persons responsible for the goods.

When complete loss of one of the pair of objects or object, which is part of a kit, the insurer reimburses the full cost of these items or sets. Surviving twin or complete the transfer of items subject to the insurance company. If desired, the client may purchase these items at a price set by independent experts. Nominations of experts selected by agreement between the parties.

insuring others' risks, the insurance company, however, sought to minimize their own, because in such insurance contracts provide the customer duty packaging and unpacking of goods specially trained packers. This may be as members of the insured (eg, museum, gallery), and employed by the master of packing cases.

Such insurance contracts carefully sets out the terms of the need to allow a person accompanying an object present at the packaging, transportation, assembly and disassembly, loading and unloading. Provision and special packaging requirements - for example, transportation of the painting in a special container, which is supported by the required temperature and the desired level of humidity. And specifies how to carry these operations, carefully worked out shipping routes, a map storage conditions,

exposure in detail prescribed safety requirements at all stages ^b .

The cost of insurance on terms Wall to wall is determined depending on the value of objects, geographical boundaries, the transport route and mode of transport, safety, etc. For example, in the transport of several paintings, prints, marks one mode of transport for short distance (for example, in Moscow) the risk of damage to the object of insurance during transportation, loading-unloading minimum. But it increases dramatically with the delivery of a larger object (eg, statues, car collection, a valuable tapestry or rug), several modes of transport, with numerous handling, even if it is necessary to temporarily place the goods in warehouses, even good

protected. In the latter case, the cost of insurance increases, and instead of 1,5-2 per cent of 3-4 per cent.

The order of payment of insurance premium depends on whether the insured single shipment, or contract /policy applies to all carriage of a particular insured person during the year. Accordingly, the insurance premium may be paid a single payment or installments, as the transport.

^a The name suggests the insurance on the terms «from wall to wall», or, otherwise, «from nail to nail» (policy, the insured received, called the «poplavochnym»). In fact, do not interpret the name too literally.

^b Perhaps the only weakness in this chain - the airports. There have not always accompany it is possible to monitor the shipment, its condition, handling, safety, etc. Therefore, when you move valuable or fragile items by air from their owners and insurers have good reason to povolnovatsya for the fate of the cargo.

insurance risks are not included in the package, it is possible to conclude separate contracts with companies that provide such coverage.

A new art insurance products and special offers to owners of cultural property to notify the company of potential customers. And some market participants have stressed that the will as evidence of the value of the property is already available to the client's documents (contracts, expert opinions, etc.). Others declare that predstrahovaya expertise is required and that its implementation and evaluation is necessary to apply to partners of the insurer - «-known and recognized experts /specialists» ² (see the «History of a scandal»). Such statements should not be considered in all cases a bit too literally. Customers are sometimes able to convince the insurer that the authorization and evaluation have already been carried out at least, and perhaps even more solid and recognized experts /specialists as partners, and that repeated the procedure useless. If the evidence is strong indeed, hardly representative of the company will persevere, and to impose on the client does not need his service, most likely, he hastened to conclude a contract.

insurance rates

Dimensions rates depend on many conditions. From what risks are insured (unless some services provided in one package, the total cost of insurance is lower than that of insuring each risk separately), even from past contracts, the extent to which the storage conditions comply with the requirements of best site preservation (maintenance required temperature and humidity regimes, lighting ³ , the existence of security and fire alarm systems, security, etc.). But the rates for insurance of works of art (no matter whether they are insured under special rules of cultural property insurance, or just as valuable assets), always higher than in normal cases, the insurance of property. Therefore, the cultural property insurance premium an insurer for a year on average 1,5-2 per cent of the value of the object, but for individual subjects (most often the most expensive, or those stored in the poor in terms of conditions of the insurer) the amount of insurance premium is higher and , to 4-5 per cent.

«History of a scandal»

Professional insurance market participants, experts, appraisers, a company specializing in the transport of cultural property, and others tend to form mutually beneficial alliances. A client who has requested, such as insurance, are forced to use only members of the group. Moreover, services provided within the partnerships have not always been qualitative (in spite of the known participants in the partnership), and very expensive (prices are often above average). By the way, these alliances very questionable from the standpoint of antitrust laws.

So, 1 April 2000 the Federal Ministry of Culture signed a major policy of JSC «Marsh - Insurance Brokers» and six insurance companies: OJSC «Ingosstrakh», CAO «Ingosstrakh - Saint-Petersburg», CAO «Ingosstrakh - Russia », Insurance Company« East-West alliance », OJSC« RESO-Garantia »and OOO« Transnational Insurance Company ». In accordance with the capital policy is that firms were limited to coverage for all (!) Exported abroad in cultural property in federal ownership.

Soon, interest in the case antitrust agency (then the MAP of Russia) and colleagues from the Ministry of Culture asked to explain what exactly the criteria and in what order to select the insurance companies, and why of all the world's brokers, registered in Russia, has been selected namely UAB «Marsh - Insurance Brokers». A Ministry of Culture, where the insurers were allowed to sign the ill-fated policy simply named «the leaders in the insurance market risk fine art», EI, of course, is not granted, and began an investigation.

case was in the State Commission MAP Russia. The main points contained in the Commission's decision, a brief look as follows:

1. The initiative to develop insurance programs of cultural values exported abroad did not come from the Ministry of Culture, and from commercial firms (insurance broker).

2. This broker is a constant partner to an insurance company, which in this program and became the official leader of the group (benefit) before other insurers which have signed the policy, the Ministry of Culture was aware of this.

3. The insurance broker has received from the Ministry of Culture to be one mediator between insured and insurers, to verify insurance coverage provided by insurers to determine the range of Russian and foreign insurance companies involved in insurance, cultural values, to determine the degree of completeness of risk coverage by foreign partners.

4. The same broker selected insurers - of applicants for participation in the insurance program of cultural values exported abroad. Among the main criteria for subjective selection of insurers and the leader of the group is interesting to note, first, the standards, which may correspond to only companies with foreign investment or subsidiary company the world's leading insurers ( «AIG Russia», «East-West Alliance» and «Zurich Rus») and, secondly, the requirements of the corporate insurance broker.

5. The insurance broker has developed a major policy on cultural property insurance, providing balance and

share in the allocation of responsibilities between the insurance and reinsurance for at least 90 per cent risk in the foreign reinsurance companies. At the same time, the Ministry of Culture informed the Russian museums that insurance values that are members of the Russian Museum Fund and sent to overseas exhibitions is only in the Russian Federation and shall be made in the insurance organizations that have signed the so-called. «Major policy». This host should confirm that the 90 percent risk in the market will perestrahovano Lloyd (Lloyd's of London) through the insurance broker «March» (MARSH Ltd. And CJSC «Marsh - Insurance Brokers »).

6. In developing the terms of the policy (quota schemes), the broker is focused on standards and requirements only reinsurance company «Lloyd's». Other leaders of reinsurance, such as Munich Re, Cologne Re, etc., are not even considered, although the conditions and requirements could be beneficial for Russian insurers.

7. Terms of reinsurance programs in cultural property (in which the broker acted both direct and reinsurance broker) with a limit of liability of U.S. $ 1 billion from reinsurers (underwriters), the London market was available to determine the proportion of all Russian companies at a rate of not more than $ 10 million United States.

8. According to the general policy of insurance must have been a «sostrahovschikami», ie, the meaning they all should have equal rights. However, the policy should have been signed to provide the right leader to only one party programs - long-standing partner of the broker. The scheme of apportionment of liability and insurance premiums between the Russian antimonopoly authority found it inadequate. The leader of the group to first identify its share of participation in the program.

In the case the representatives of the insurance broker said that any insurance organization, has signed major policy under certain conditions can become a leader. However, as it turned out, the essence of these conditions, participants in the program is not notified, in addition to the final conditions of the policy developed by brokers, is not consistent with the originally agreed upon, so some insurers have refused to participate in the program (for example, the Insurance Group «Spasskiye Gates»).

Ministry of Finance of Russia, which includes Rosstrahnadzor, having studied the documents of insurers and insurance broker, found in them, and grave breaches of the legislation on insurance and threatened by the severe sanctions violators.

As a result, all the bumps go to the Ministry of Culture. He was accused of creating the conditions that impede the activities of other insurance brokers, that is recognized with the law «On protection of competition in the financial services market», and recommended for the future in developing and implementing insurance programs of the Museum of Cultural Property Fund of Russia, directed at foreign exhibitions, to provide equal conditions for all participants in the insurance market (insurance companies and brokers).

Before contracting property insurance to large amounts of insurance required from the customer fill out a detailed questionnaire or a standard form of insurance, and then another, and a survey of the building, surrounding area, premises, which are stored object of insurance, and neighboring him. In a statement (form) the prospective policyholder specifies details about themselves and their property: the name of the legal person or a citizen's name, address, bank details, information on obtaining a license, on the owners and users of property, etc. shall also contain specific risks that are insured property.

On the basis of information given policyholder, survey the premises, the conclusions of experts /specialists (if they participated in the survey) on the object of insurance risk is assessed and calculated the amount of insurance premium.

But in the process of implementing the contract the risk may change: for example, of the alarm system will be necessary to carry out repairs in the fitted values for the storage room. If you raise the level of risk necessary to make changes in the insurance contract, respectively, may increase the amount of insurance premiums may increase the insurer the right to monitor use of the property. If the insurer does not notify, then when the insurance case, he shall be entitled to reasonably refuse to pay.

If you are entering into a contract insurant silent on the circumstances known to him, essential to determine the degree of risk that were not and should not have been known to the insurer, but the issues were not specified in the standard form of the insurer to the insurance contract or in his written request ⁴ , the basis for the recognition of the insurance contract null and void (as transactions done under the influence of fraud) are not available.

To be

Elena Pokidova

¹ There are alternatives: for example, has recently become relevant property insurance against destruction and damage as a result of acts of terrorism. Return

² attention of the client, usually focuses on what he himself most interested in this examination and evaluation. But experienced people and leaders of organizations rarely share such optimism insurers (the difficulties of evaluation and some of the reasons for the reluctance to provide value for expertise, we will talk below.) Return

³ For example, everyone knows that the images are harmful direct sunlight, but not everyone knows that the storage in a dark room for the paintings as bad (changing the chemical composition of paints and consequently, its color). Return

⁴ For example, if the standard form of application for insurance does not provide the client request for information on the status of the electrical wiring, alarm or heating system, on past failures, accidents, fires due to short circuit or underflooding due to the breakthrough of corroded pipes. Return