It obtained a Standard Fire and Special Perils Policy from United India Insurance, valid from March 6, 2011, to March 5, 2012. The policy covered the building for â¹95 lakh; plant, machinery, and accessories for 40 lakh; and stock for 2 crore.
During the policy's tenure, on June 4, 2011, a sudden fire broke out in the factory. It was controlled with the help of the fire brigade.
A first information report (FIR) was immediately lodged with Maharashtra the Industrial Development Corporation (MIDC) Police Station, and the insurer was also informed. A claim was lodged stating that the total loss was 37,28,168, out of which the value of the salvage was 7,71,345, resulting in a net loss of â¹29,56,823.
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