We all appreciate the benefit of GIS in supporting our sector, indeed
without it, many of the amazing loans and exhibitions that make our jobs such
rewarding ones, could not happen. ACE estimate the scheme saves the sector £15
million pounds a year, from supporting recent loans as diverse as the stunning
Ostro Topaz to King John’s teeth!
Although most registrars have a well-thumbed copy of the GIS guidelines
to hand there is always more to learn so it was interesting to hear from Carol
Warner, who manages the scheme for ACE, with some updates and FAQ’s.
Carol then ran through a number of the most commonly asked questions
about GIS and rather than going into detail here, you can find them and their
answers in the copy of her presentation now available on the UKRG website.
She also looked at a number of queries from
lenders which are becoming more common and what the solutions are;
War and /or Negligence clause - this can be
covered if some set questions can be answered. For example if war cover is
requested during transit details of transport and routes will be requested.
Comfort letter regarding claim process – This
confirms the process and procedure should a claim be made. Once ACE is satisfied with a claim they will
pay in 4-7 working days.
Inalienability – The concept of inalienability is not
recognised in English law but ACE can issue a comfort letter stating that “ the
indemnity offered by the UK Government does not affect title to the object” In
England it is possible that title may be transferred to a finance company or
retained by the owner. Whoever has the title must be listed on the indemnity
schedule otherwise this may make it invalid.
Contingency or Difference in Condition
insurance is an increasingly frequent request from Italian institutional
lenders. This usually requires the borrower to pay a premium to the lenders
insurance agents to cover everything not covered by GIS.
Touring exhibitions – GIS cover for
transfers.
Having recently negotiated two different
agreements with partners for two similar touring exhibitions I was very
interested to hear what the advice would be. Carol advised that where a UK
partner is the lead partner for a tour then two legs would usually be covered.
Otherwise the benefits to the UK public have to be demonstrated and the cost of
commercial insurance calculated to show the savings which could be made.
The
full presentation is now on the UKRG website and further information can be
found on the link below.
Thanks to Carol for the update and thank you to
UKRG for giving me a bursary towards the cost of attending the AGM event.
By Jacqui
Austin, Lead Registrar: Loans, touring & partnerships, National Galleries
of Scotland
