Claim not payable if policy conditions are flouted

The National Commission observed that the requirement of first-class construction was mentioned in the cover note and the policy, so stock kept elsewhere wouldn't be covered

Mittal Cot Fab, a private limited company, is a manufacturer and trader of cotton yarns. It had obtained a Standard Fire and Special Perils Policy from New India Assurance for the period June 9, 2002 to June 8, 2003. The policy covered the insured’s building, plant and machinery, and stocks for a total value of about Rs 10.84 crore.

On May 18, 2003, the security guard noticed smoke and flames billowing out from one of the sheds where cotton was stored. The fire brigade summoned from Panipat was unable to control the raging fire, so fire engines from several other neighbouring