Australia

Life insurer Life insurers are required to maintain statutory funds, which act as a mechanism for quarantining the life insurance business of the company from any other business of the company.

General insurer APRA administers the Financial Claims Scheme (FCS), which makes payments to certain policyholders with valid claims on an insolvent general insurer. The Government funds the payments made under the scheme and then seeks recovery from the general insurer in the winding up process. Any shortfall may be recovered through a levy on the general insurance sector.

China In the event of insolvency or revocation of license of a nonlife insurer whose assets are insufficient to pay benefits, a non-life policyholder protection fund covers 100 per cent of losses up to RMB50,000 and thereafter, 90 per cent of losses for individual policyholders and 80 per cent for corporate policyholders. In the event of insolvency or revocation of license of a life insurer, the policies are required to be transferred to a new insurer and the policyholder protection fund will make up the shortfall in supporting assets to 90 per cent of individual policyholder liabilities and 80 per cent of corporate policyholder liabilities.

Indonesia

With most of its insurance companies located in the country’s capital, Jakarta, each insurance company must form its own protection fund as a means of ‘last resort’ to protect the interests of policyholders. The protection fund must constitute at least 20 per cent of the insurer’s capital plus 20 per cent of annual premiums. The funds representing the protection fund must be deposited with a bank.

The insurance law gives policyholders preferential rights in a liquidation procedure ahead of secured and unsecured creditors but behind preferred creditors (tax liabilities and employee compensation).

The Financial Services Authority, Otoritas Jasa Keuangan or OJK Regulation No. 1 of 2013 gives a policyholder the right to report a complaint to the OJK with an indication of a dispute between an insurance company with a policyholder and/or an alleged violation of the financial laws and regulations. Further, it also requires insurance companies to have annual program on customers and/or public education to promote financial (insurance) literacy.

Accidents like these happen unexpectedly. With the increasing interest in artworks investments, insuring your art pieces can assist you in case you have recover the damage. Axis Capital Inc., with years of experience of handling artworks in Bermuda, Singapore, Australia, the United Kingdom and the United States, explains that property insurance follow the same procedure as homeowners or theft insurances. Here are the following steps to insure your art pieces:

1. Know which premium to pay

Agents may be able to help you know which specific plan to get. Since antiques and paintings each have different premiums, you have to know which is fit for your pieces. Make sure to know what the inclusions are. If you are planning to insure a whole bunch of artworks, you are likely to get specialist insurance. If you only have one or two masterpieces to cover, home policy may be able to include those in your provision.

2. Get the Exact Price to Cover

Historical pieces made by famous artist can get a cover of up to million dollars. Make sure to discuss the exact figure of coverage with your insurance agent. Each year’s renewal can also be either depreciated or appraised depending on the value estimate and review of its market cost. Insurance companies use different measuring equipment to ensure the value the artwork.

3. Update you Cover

When the artist dies, the value of the art should automatically increase by either 100% to 200% depending on the place you are in. In developing cities like Jakarta, Indonesia and Kuala Lumpur, Malaysia, the value has increased from 50% to 150% within a year. In the event of an artist’s death you must review your sums insured within 12 months to ensure you have the right level of cover.

4. Clear Its Legitimacy

It is a crime to incur stolen pieces of art, no matter how valuable they are. It is important to know that your art piece was not previously stolen or is a product of fraudulence. The insurance only covers arts in good faith and not if it is a product of thievery.