Article | Last updated: 2007-09-18 | Ministry of Foreign Affairs
1. About the scheme
Any Norwegian museum or exhibiting institution (hereinafter called “the lender”) may apply for government loss and damage indemnity (hereinafter called “the government indemnity scheme”) for an exhibition shown by a foreign exhibiting institution (hereinafter called “the borrower”).
The government indemnity scheme is also available for exhibitions for which the lender coordinates the borrowing of works from private collections.
To qualify for the Norwegian government indemnity scheme, an exhibition must be of particular artistic value and able to make a significant impact. The insured value must generally be at least NOK 3 million. In special cases, the Ministry of Foreign Affairs may grant exemptions from the minimum value rule.
2. The scope of government indemnity
The government indemnity scheme covers loss and damage during transport, storage and exhibition. It also covers loss and damage resulting from airline accidents, hijacking incidents, terrorist acts, maritime accidents, unforeseen transshipment, etc. The scheme does not cover loss and damage arising from hostilities between independent countries. For consignments in transit, the government indemnity scheme also covers the carrier’s value-added tax liabilities to governments of transit countries.
3. The application
Application is made on a special form which is to be filled in and filed with the Ministry of Foreign Affairs by 15 May of the year preceding the exhibition. When special grounds so indicate, applications submitted after this date may be accepted.
3.1. Information as to whether there is any government indemnity scheme for exhibitions in the borrower’s country and, if so, the coverage offered by such a scheme, shall accompany the application. Norwegian government indemnity for exhibitions or for parts of exhibitions will not be granted if the borrower’s own government offers an indemnity scheme.
3.2. If the precise period of indemnity has not yet been finalized at the time of the filing of the application, a longer period should be stated. The Ministry must be informed of the precise period no later than two months before the beginning of the indemnity period.
3.3. The insured value is to be stipulated by the lender. The lender is responsible for ensuring that the insured value accords with the ordinary market value. If the precise insured value has not been clarified at the time the application is made, the required information, i.e. a list of the objects lent, with their exact values, which shall be equal to the insured values under this indemnity scheme, must be received by the Ministry no later than two months before the beginning of the indemnity period.
3.4. Information on the security measures taken by the exhibiting institution shall be provided on a separate questionnaire enclosed with the application form.
4. Lender’s liability
The lender normally bears a minimum liability of 1 ‰ of the insured value, limited upwards to NOK 100 000. This amount is to be covered by the lender. The lender’s minimum liability applies to loss or damage during transport or storage.
5. Loan contract
As the Ministry of Foreign Affairs has no authority over foreign borrowers, loan contracts signed between lenders and borrowers must include certain provisions in order to qualify for Norwegian government indemnity.
5.1. The contract must stipulate that the borrower shall undertake to investigate whether indemnity is available from the government of the borrower’s own country, the coverage it provides, and thus what is to be covered by the Norwegian government indemnity. The loan contract must stipulate that the findings of this investigation shall be enclosed with the application.
5.2. The contract must stipulate that the borrower bears a minimum liability of 1 ‰ of the insured value, limited upwards to NOK 100 000. The borrower’s minimum liability applies to loss or damage during exhibition. In special cases, the borrower may be exempted from the minimum liability requirement. The loan contract shall precisely stipulate the borrower’s minimum liability or specify which parts of the exhibition are to be covered by a separate indemnity scheme, so that the scope of the Norwegian government indemnity is clearly defined.
5.3. The loan contract must stipulate the obligation of the borrower to notify the lender of any loss or damage to borrowed objects which are part of the exhibition (cg. item 6.1 below).
A copy of the loan contract shall be submitted to the Ministry for review at the earliest possible opportunity.
6. In the event of loss or damage
The following steps shall be taken in the event of loss or damage.
6.1. The borrower must notify the lender immediately.
6.2. The lender must notify the Ministry of Foreign Affairs immediately. The lender shall file a damage report specifying the scope and cause of the damage, together with the liability claim, as soon as possible and no later than three months after the return of the exhibition to the lender.
6.3. The lender shall decide whether the damage is to be repaired and if so, to what extent. The lender will decide who will do any restoration work.
6.4. The lender shall also notify the Ministry of Foreign Affairs within three months after an exhibition has been returned in good condition.
Compensation is paid according to the following rules:
7.1. The government indemnity covers the exhibition objects during transport, storage and exhibition.
7.2. Compensation is paid when it has been determined that damage or loss falls within the scope of the government indemnity scheme and exceeds the minimum liability (cf. item 4 above). The amount of compensation may be subject to reduction (cf. item 8 below).
7.3. Compensation under this indemnity scheme will be allocated by the Storting. Compensation will be paid by the Ministry of Foreign Affairs in accordance with a decision of the Storting.
7.4. In case of loss or total deterioration, the insured value shall be paid in full. In case of damage, the compensation shall cover the cost of restoration and any loss in value. In case of disagreement on the amount of compensation, the issue shall be decided in accordance with the procedure stipulated in the contract.
The amount of compensation shall not exceed the stated insured value. If insurance compensation payments are forthcoming from others, the amount paid under the present government indemnity scheme shall be reduced correspondingly.
7.5. For lost objects which are subsequently recovered, any compensation that has been paid shall be refunded. In the event that the object has sustained damage, any restoration costs shall be deducted from this amount.
If a lender or any person acting on his behalf (employee, courier, etc.) commits a security violation or in any other way contributes (by any action or omission) to the damage or loss from which the insurance claim arises, a third party will be appointed to assess a reduction in the amount of compensation proportionate to the effect of the action/omission on the causation of the damage or loss.
9. Right of recourse
If a borrower or transporter or any person acting on their behalf violates the contract’s security provisions or in any other way contributes (by action or omission) to the damage or loss from which the insurance claim arises, the Ministry has a right of recourse against such party in accordance with the ordinary rules on compensation.