Not buying add-on cover can prove costly sometimes

The National Commission observed that liability under the policy could neither be extended nor curtailed, but would be determined according to the terms of the contract

Dalas Biochem had taken a Fire and Floater Special Perils Policy from United India Insurance. The policy, which had a coverage of Rs 13 crore, and was valid from January 13, 2010, to January 12, 2011, covered risk for chemical as well as bulk drug manufacturing at the insured’s manufacturing unit at Bhiwadi in Alwar District of Rajasthan.

On July 10, 2010, while raw material was being transported from the godown to the manufacturing unit, one can of Phosphorus Oxychloride fell while it was being loaded into a truck. The chemical leaked. On coming into contact with the moisture in the