How the Central Government Guarantee works

The Central Government Guarantee is a commitment between the Spanish government and the owner of the item; the organising institution formalises the agreement between both parties.

There is a combined insurance system: coverage of an initial amount up to a certain limit (exemption), which is taken out by the organising institution with a private insurance company; above that amount, the Central Government is responsible for compensation. The exemption limits are indicated in Royal Decree 1680/1991.

The amount of any compensation to be granted by the Central Government is determined by the following rules established in Royal Decree 1680/1991:

• Due to loss, theft or destruction of the work, the Ministry of Education, Culture and Sport will pay the transferor an amount equal to the value declared in the application and recognised in the Central Government Guarantee granting order.
• Due to damage to the work, the compensation will include:
  • The reasonable cost of restoring the work, established by mutual agreement between the transferor and the Ministry of Education, Culture and Sport or, if no agreement is reached, the cost determined by an expert agreed to mutually by both parties.
  • An amount equal to the depreciation of the market value of the work after its restoration, as determined by mutual agreement between the transferor and the Ministry of Education, Culture and Sport or, if no agreement is reached, the value determined by an expert agreed to mutually by both parties.
  • The amount of the compensation may not exceed the value of the work declared on the application and recognised in the Central Government Guarantee granting order.