insurance. Iffco Tokio General Insurance (ITGI) is coming up with two
new products in the niche area, particularly for vintage cars, and
another one for musical instruments. Premiums on these products may not
be uniform and would depend on clients and valuations of the assets.
“The demand for vintage car insurance is high and we expect it to
add 10 per cent to the fine arts insurance business in the first year
of launch and musical instruments to contribute 5 per cent,” said Vikas
Singh, head of finance and liability, Iffco Tokio.
The products will be launched in the next one year. Currently, Iffco
Tokio has two products in this segment, namely fine art insurance for
private collectors and fine art insurance for art dealers and gallery
owners.
The insurer has received a premium income as high as Rs 15,00,000
from a gallery as well as a private collector. ITGI has sold 100
policies in the last two years, including eight to 10 large clients,
which contributed over 60 per cent in the premium income of fine arts
insurance. It has settled four claims so far. With more awareness and
people turning more vigilant about their possessions, the company aims
at selling 500 policies in the next five years.
An executive from another insurance company said premiums vary from
0.25 per cent to 0.4 per cent of the art work. A higher premium is
charged if the security provisions are not up to date.
However, the fine arts insurance contributes only a fraction of the
gross premium income. But the insurer is confident of growing at 10 per
cent per annum.
“There is opportunity for fine arts insurance business in India,
China and Eastern Europe. These countries are culturally rich and have
created a large amount of wealth” said Robert Read of Hiscox Global
Markets. ITGI has a treaty arrangement with underwriter Hiscox of the
United Kingdom for providing risk cover in different segments. The
underwriter has clients worldwide, including the National Gallery of
London and museums in the United States.
Today, the Indian art market is valued at Rs 20,000 crore and is
expected to grow at 20-25 per cent annually. The valuations of the arts
have come down by 10-15 per cent from the last year’s, the official
added.
Recently, Bajaj Capital’s insurance broking has forayed into fine
arts insurance. ICICI Lombard and Oriental Insurance are the other
players in this segment.
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