NORTH-EASTERN STATES

Transport Subsidy Scheme Notifications No F. 6(26)/ 71-IC dated 23.7.1971 Gazette Notifications No 11(1)/98-dba II. 20 January, 1998 Ministry of Industry Notification No. 6(1)/DBA-II. 1st June, 1998 Ministry of Industry Notification No.6 (2)/98-DBA-II.18th February 1999 Ministry of Industry Notification No 17/1/98-DBA-I. 14th July, 1999

The Gazette of India Extraordinary

(Part 1 Section 1)

MINISTRY OF INDUSTRY

(Department of Industrial Policy & Promotion)

NOTIFICATION

New Delhi the 29^th January, 1998

No 11(1)/98-dba II. The Central Government hereby makes the following further amendment in the Notification of the Government of India in the erstwhile Ministry of Industrial Development Notification No. 5/26/71. IC, dated 23^rd July, 1971, namely the Transport Subsidy Scheme, 1971 as published in the Gazette of India Extraordinary Part 1, Section 1, dated 27^th July, 1971 as amended from time to time: -

1. In para 2 of the said Scheme under the heading "Commencement and Duration" the following shall be added at the end :-

"The Scheme shall, however, remain in operation till 31^st March, 2007 for the North-Eastern Region"

2. In para 6 of the said Scheme after sub-para (xii a) the following sub-para (xii b) shall be inserted namely :-

MINISTRY OF INDUSTRY

New Delhi, the 1^st June, 1998

F. No. 6(1)/DBA-II. The Government of India is pleased to make the following scheme of Central or Subsidy for industrial units in the North Eastern Region comprising the States of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura with a view to accelerating the industrial development in the region.

1.   Short Title: - This scheme may be called the Central Capital Investment Subsidy Scheme, 1997.

2.   Commencement and duration:- It will come into effect from the 24^th December, 1997 and remain in force and inclusive of 31-3-2007.

3.   Applicability:- The scheme is applicable to all industrial units in the Growth Centres approved for the North Eastern region and also to the new industrial units or their substantial expansion in other Growth centres or IIDC industrial estates/parks/export promotion zones set up by the States in the North Eastern region and new industrial units their substantial expansion in the specified industries (as at Annex. A) located outside these growth centres and identified locations.

4.   Definitions:-

1. ‘Industrial unit’ means any industrial undertaking, suitable servicing unit other than that run departmentally Government.
2. ‘New Industrial Unit’ means an industrial unit for the setting up of which effective steps where not taken priority 24^th December 1997.
3. ‘Existing Industrial Unit’ means an industrial unit for the setting up of which effective steps were taken priority 24 December 1997.
4. ‘Substantial Expansion’ means increase in the value of fixed capital investment in plant and machinery of industrial unit by not less than 33½% for the purpose of expansion of capacity/modernisation etc.
5. ‘Effective steps’ means one or more of the following steps:-
1. that 10% or more of the capital issued for the industrial unit has been paid up.
2. that any part of the factory building has been constructed.
3. That firm order has been placed for any plant and machinery required for the industrial unit.
6. ‘Fixed Capital Investment’ means investment in plant and machinery for the purpose of this scheme.

5.   Extant of admissible subsidy

All eligible industrial units located in the Growth Centres approved for North Eastern Region shall be given cap investment subsidy at the rate of 15% of their investment in respect of new units or additional investment in respect substantial expansion in plant and machinery subject to a maximum ceiling of Rs. 30 lakhs.

6.  Plant & Machinery

In calculating the value of plant and machinery the cost of industrial plant and machinery as erected at site with taken into account which will include the cost of productive equipment, such as tools, jigs, dies and moulds, insurance premium etc.

7.   Designated Agency for disbursement of subsidy

North Eastern Development Financial Corporation (NEDFI) shall be the designated agency for disbursement of Capital Investment Subsidy on the basis of the recommendation of the concerned State Government.

8.  Procedure for claiming Capital Investment Subsidy

Industrial units eligible for subsidy under the scheme will get themselves registered with the State Department concerned prior to taking effective steps for setting up the new units or undertaking substantial expansion of the existing units an indicate their assessment of the total additional fixed capital likely to be invested by them in the plant and machinery of their unit. Such of the units as had taken effective a steops prior to the date of announcement of the scheme but afters 24-12-1997 will get themselves registered by 31-12-1998.

9.   Procedure for disbursement of Capital Investment Subsidy

Each State Government concerned will set up a Committee consisting of a representative each of the State Department concerned, the State Finance Department, State Directorate of Industries and if the industrial unit is to be assisted by a financial institution, the financial institution concerned, to go into each case to decide whether it should qualify for the grant of subsidy and also about the quantum of subsidy.

10.   In respect of a new industrial unit set up without assistance from the financial institutions or the State Government concerned, the subsidy will be disbursed the unit by NEDFI on the recommendation of the State Government at the time the unit goes into production. Similarly, in respect of substantial expansion by an existing industrial unit without assistance from the financial institutions or the state Government concerned, the subsidy will be disbursed to the unit by NEDFI on the recommendation of the State Government concerned after substantial expansion has been effected and the unit has gone into production however, in such cases where the concerned State Government is satisfied about the safety of the public funds, not more than half of the amount of the estimated subsidy may be released prior to the unit going into production on the entrepreneur’s furnishing a proof of having taken effective steps to the satisfaction of State director of Industries and the remaining amount be released only after the unit goes into production.

11.  In respect of an industrial unit to be assisted by the State Government concerned, the subsidy will be disbursed to the unit by NEDFI on he recommendation of the State Government concerned. In such cases, the contract/agreement to be drawn up between the State Government and the unit concerned may cover mortgage, pledge, hypothecation of the assets of the unit upto the amount of the loan to be advanced by the financial institution concerned and the subsidy.

12.  Rights of the Centre/State Government/Financial Institutions

If the Central Government/State Government/Financial Institutions concerned is satisfied that the subsidy or grant to an industrial unit has been obtained by misrepresentation as to an essential fact, furnishing of false information or if the unit goes out of production within 5 years after commencement, the Central Government/State Government/Financial Institution concerned may ask the unit to refund the grant or subsidy after giving opportunity to the concerned to be heard.

13.  Without taking prior approval of the Ministry of Industry, Department of Industrial Policy and Promotion/State Government/Financial Institution concerned, no owner of an industrial unit after receiving a part or the whole of the grant or subsidy will be allowed to change the location of the whole or any part of industrial unit or affect any substantial contraction or disposal of a substantial part of its total fixed capital investment within a period of 5 years after its going into production.

14.  In respect of all units to whom the grant or subsidy is disbursed by the financial institution/State Government, certificate of utilization of the grant or subsidy for the purpose for which it was given shall be furnished to the Central Ministry of Industry, Department of Industrial Policy and Promotion by the financial institution/State Government concerned within a period of from the date of receipt of the last instalment/full anount.

15.  After receiving the grant of subsidy, each industrial unit shall submit annual Progress report to the Ministry of Industry. Department of Industrial Policy and Promotion/State Government concerned, about its working for a period of 5 years after going into production.

MRS. PRATIBHA KARAN, Jt. Secy.

ANNEX-A

1.   Fruit and Vegetable Processing

1. Canned/Bottled Products
2. Aseptic Packaged Products
3. Frozen Products
4. Dehydrated Products
5. Oleoresins

2.   Meat and Poultry Products

1. Meat Products (buffalo, sheep, goat and pork)
2. Poultry production
3. Egg Power Plant

3.   Cereal Based Products

1. Maize Milling including starch and its derivatives
2. Bread Biscuits, Break fast Cereals etc.

4.   Consumer Industry

1. Snacks
2. Confectionery including Chocolate
3. Pasta Products
4. Processed Spices etc.
5. Processed Pulses
6. Tapioen Products

5.   Milk and Milk-based Products

1. Milk Power
2. Cheese
3. Butter/Ghee
4. Infant Food
5. Weaning Food
6. Malted Milk Food

6.   Food Packaging

7.   Paper Products

8.   Jute and Mesta Products

9.   Cattle/Poultry/Fishery Feed Production

10.   Oil Processing/Vanaspati

11.   Essential Oils and Fragrances

12.   Processing and Raising of Plantation Crops

1. Tea, Rubber, Coffee Coconut etc.

13.   Gas based Intermediate Products

1. Gas exploration and Production
2. Gas Distribution and Bolting
3. Power Generation
4. Plastics
5. Yarn Raw Materials
6. Fertilizers
7. Methanol
8. Formaldebycle and FR Resin Melamme and MF Resin
9. Nitrate Acid and Ammonium Nitrate
10. Carbon Black
11. Polymer Chips

14.   Agro Forestry

15.   Horticulture

MINISTRY OF INDUSTRY

(Department of Industrial Policy & Promotion)

NOTIFICATION

New Delhi the 18^th February 1999

No.6 (2)/98-DBA-II.- The Government of India is pleased to make the following scheme of Interest Subsidy on the Working Capital Loans for industrial units in the North-Eastern Region comprising the States of Assam. Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura with a view to accelerating industrial development in the region.

1.  Short title: This Scheme may be called the Central Interest Subsidy Scheme, 1997.

2.  Commencement and duration: It will be effective from the 24^th day of December 1997 and remain in force upto and inclusive of 31.03.2007.

3.  Applicability: The Scheme is applicable to new industrial units or their substantial expansion in the Growth Centres or HDCs or HDCs or industrial estates/parks/export promotion zones set up by States in the North Eastern Region and new industrial units or their substantial expansion in the specified industries (as at Annexure-A) located outside these Growth Centres and other identified located.

4.  Definitions:

1. ‘Industrial’ Unit means any industrial undertaking, suitable servicing unit other than that run departmentally by Government of India/State Government;
2. ‘New Industrial Unit’ means an industrial unit for the setting up of which effective steps were not taken prior to 24^th December 1997;
3. ‘Existing Industrial Unit’ means an industrial unit set-up prior to the operative date of the scheme i.e. 24^th December 1997;
4. ‘Substantial Expansion’ means increase in the value of fixed capital investment of an industrial unit by not less than 10% for the purpose of expansion of capacity/modernization and diversification; and
5. ‘Effective steps’ means one or more of the following steps:-
1. that 10% or more of the capital issued for the industrial unit has been paid up;
2. that any part of the factory building has been constructed;
3. that a firm order has been placed for any plant and machinery required for the industrial unit.

6. ‘Fixed Capital Investment' means investment in land, building an plant and machinery.

1. Land: The actual price paid for the land to the extent needed for the purposes of the plant Charges for the leased land will not be taken into account.
2. Building: Same as in the case of land Rent of a hired building will not be taken into account.
3. Plant and machinery:

1. In calculating the value of plant and machinery, the cost of plant and machinery as erected at site will be taken into account which will include the cost of productive equipment, such as tools, jigs, dies and moulds; transport charges, insurance premium, etc. will also be taken into account.
2. The amount invested on goods carriers to the extent they are actually utilised for transport of raw materials and marketing of the finished products will be taken into account.
3. Working capital including raw materials and other consumable stores will be excluded for computing the value of plant and machinery.

1. Fixed Capital: represents the depreciated value of fixed assets owned by the factory as on the closing day of the accounting year. Fixed assets are those which have a normal productive life of more than one year. Fixed capital covers all types of assets, new or used or own constructed, deployed for production, transportation, living or recreational facilities, hospitals, schools etc, for factory personnel. It includes the fixed assets of the head office allocable to the factory and also the full value of assets taken on hire purchase basis (whether fully paid or not) excluding interest element. It excludes intangible assets and assets solely used for post manufacturing activities such as sale, storage, distribution etc.
2. Physical Working Capital: - is defined to include all physical inventories owned, held or controlled by the factory as on the closing day of the accounting year such as the materials, fuels and lubricants, stores etc., that enter into products manufactured by the factory itself or supplied by the factory to other for processing. Physical working capital also includes the stock of materials, fuels and stores etc., purchased expressely for re-sale, semi-finished goods and work in progress on account of others and goods made by the factory which are ready for sale at the end of the accounting year. However, it does not include the stock of the materials, fuels, stores, etc, supplied by others from raw materials supplied by the factory and held by them are included and finished goods processed by the factory from raw materials supplied by others are excluded.
3. Working Capital is the sum total of the physical working capital as already defined above and the cash deposits in hand and at bank and the net balance of amount receivable over amounts payable at the end of the accounting year. Working capital, however, excludes unused overdraft facility, fixed deposits irrespective of duration, advances for acquisition of fixed assets, loans and advances by proprietors and partners irrespective of their purpose and duration, long-term loans including interest thereon and investments.

5.  Extent of admissible subsidy:

All eligible industrial units in the North Eastern Region shall be given an interest subsidy to the extent of 3% on the Working Capital advanced to them by the Scheduled Banks or Central/State financial institutions for a maximum period of 10 (ten) years from the date of commencement of production.

6.  Norms for Working Capital calculation:

For the purpose of this scheme, the minimum working capital requirement of a unit shall be worked out @ 25% of their annual turnover. Inventory norms may be applied, if necessary, after providing for aforesaid minimum level. In respect of such units for which norms have not been laid down/are not applicable (due to the units coming below the cut off point of Rs.10 lakhs of working capital), the request of working capital should be considered favourably so long as the working capital is not very much above such minimum level. Special norms can also be evolved for inventory and receivables. Working capital below the minimum level may be justified under special circumstances in which the requirement is demonstrably lower, as in the case of ancillary units in the small scale sector with assured supply of inputs and off-fake of output.

7.  Designated Agency for disbursement of Subsidy:

North Eastern Development Financial Corporation (NEDFI) shall be the designated agency for disbursement of interest subsidy on the basis of the recommendation of the concerned Stated Government.

8.  Procedure for claiming Interest subsidy:

Industrial units eligible for subsidy under the scheme will get themselves registered with the State Department concerned prior to taking effective steps for setting up the new units or undertaking substantial expansion of the existing units and indicate their assessment of the total working capital likely to be required for a unit. Such of the units as has taken effective steps on or after 24.12.1997 i.e. the date of announcement of the scheme will get themselves registered by 31.12.1999.

9.  Procedure for disbursement of Interest Subsidy:

Each State Government concerned will set up a State Level Committee consisting of a representative each of the State Department concerned the State Finance Department, State Directorate of Industries. NEDFI or its designated agency and the financial institution concerned, to go into each case to decide whether it qualifies for the grant of subsidy an also about the quantum of subsidy.

10.  The subsidy will be disbursed to the unit by NEDFI on the recommendation of the State Level Committee/State Government concerned.

11.  Rights of the Centre/State Government/Financial Institutions:

If the Central Government/State Government/financial Institution concerned is satisfied that the subsidy or grant to an industrial unit has been obtained by misrepresentation of the essential facts, furnishing of false information or if the unit goes out of production within 2 years after having availed the subsidy under the scheme, the Central Government/State Government/Financial Institution concerned may ask the unit to refund the grant or subsidy after giving opportunity to the concerned to be heard.

12.  Without taking prior approval of the Ministry of Industry, Department of Industrial Policy & Promotion/State Government/Financial Institution concerned, no owner of an industrial unit will be allowed to change the location of the whole or any part of the industrial unit will be allowed to change the location concerned, no owner of an industrial unit or effect any substantial contraction or disposal of a substantial part of its total fixed capital investment within a period of 2 years of receiving a part or the whole of the grant or subsidy under thescheme.

13.  After receiving the grant of subsidy, each industrial unit shall submit annual progress report to the Ministry of Industry, Department of Industrial Policy and Promotion/State Government concerned, about its working for a period of 10 ears after going into production.

SMT. PRATIBHA KARAN, Jt. Secy.

MINISTRY OF INDUSTRY

(Department of Industrial Policy and Promotion)

NOTIFICATION

New Delhi the 14^th July, 1999

No 17/1/98-DBA-I.- In purchase of Para E(ii) of the Ministry of Industry, Department of Industrial Policy & Promotion O.M. No. EA/1/2/96-IPD dated 24^th December 1997, the Government of India is pleased to make the following Scheme of Comprehensive Insurance for industrial Units in the North Eastern Region comprising the States of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura with a view to accelerating industrial development in the region.

1.   Short Title:- This scheme may be called Central Comprehensive Insurance Scheme, 1997

2.   Commencement and Duration: It will be effective from the day of its publication and remain in force for 10 (ten) years.

3.   Applicability: The Scheme is applicable to new Industrial Units set up in the North Eastern Region after 24 December 1997.

4.   Definition of Industrial Unit: Any industry, which is included in Fire Policy ‘C’ as per All India Fire Tariffs.

5.   Fixation of Sum Insured: The Policy shall be issued on market valuation by the Insurance Company.

6.   Mode of Operation: The insured party shall pay the initial premium which shall be reimbursed by the nodal insurance company (National Insurance Corporation) out of the revolving fund maintained by that company. Funds for this revolving fund shall be contributed by Ministry of Industry, Department of Industrial Policy & Promotion.

7.   The Insurance policy envisaged under the Scheme will be as indicated in Annexue-A.

MRS. PRATIBHA KARAN, Jt Secy.

ANNEXURE-A

COMPREHENSIVE INSURANCE POLICY FOR INDUSTRIAL UNIT IN NORTH EAST REGION

     "IN CONSIDERATION OF the Insured named in the schedule hereto having paid to the ______________________ Insurance company Limited (hereinafter called the company) the premium mentioned in the said scheduled, THE COMPANY AGREES, (subject to the conditions and exclusions contained herein or endorsed or otherwise expressed hereon) that if after payment of the premium the property insured described in the said schedule or any part of such property be destroyed or damaged by the following:-

1. Fire
2. Lightning
3. Explosion/Implosion but excluding loss of or damage


(a) to boilers (other than domestic boilers), economizers or other vessels, machinery or apparatus in which steam is generated or their contents resulting from their own explosion/implosion,
(b) caused by centrifugal force.
4. Riot, Strike, Malicious, and terrorist Damage as per Riot, strike, Malicious and terrorist Damage clause printed hereon.
5. Impact by any Rail/Road vehicle or animal.
6. Aircraft and other aerial and/or space devices and/or articles dropped therefrom, excluding destruction or damage occasioned by pressure waves caused by such devices,
7. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation.
8. Subsidence and Landslide (including Rockslide) resulting in collapse of the entire building or part of.
9. Earthquake Fire and Shock.

During the period of insurance named in the said schedule or of any subsequent period in respect of which the insured shall have paid and the Company shall have accepted the premium required for the renewal of the policy, the Company will pay to the Insured the value of the Property at the time of the happening of its destruction or the amount of such damage or at its option reinstate or replace such Property or any part thereof.

PROVIDED that the liability of the Company shall in no case exceed in respect of each item the sums expressed in the said Schedule to be insured thereon or in the whole the total sum insured hereby or such other sum or sums as may be substituted thereof by memorandum hereon or attached hereto signed by or on behalf of the company."

RIOT, STRIKE, MALICIOUS AND TERRORIST DAMAGE CLAUSE

This Policy covers Riot, Strike, Malicious and Terrorist Damage as under:-

I.  Loss of or visible physical damage by external violent means to the property insured directly caused by:

1. The act of any person taking part together with others in any disturbance of the public peace (whether in connection with a strike or lockout or not) not being an occurrence mentioned in exclusion 7(a), (b).
2. The action of any lawfully constituted authority in suppressing or attempting to

Suppress any such disturbance or in minimizing the consequence of any such disturbance.

3. The willful act of any striker or locked out worker done in furtherance of strike or in resistance to a lock out resulting in visible physical damage by external violent means.
4. The action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimising the consequences of any such act.
5. Any malicious act but excluding any omission of any kind of any person (whether or not such act is committed in the course of a disturbance of public peace) provided that the Company shall not be liable for any loss or damage arising out of or in the course of burglary, housebreaking, theft or larceny or any attempt by any person taking part therein.

II.   Loss of or Damage to the property insured by explosion or otherwise directly caused by:

1. An act of terrorism committed by a person or persons acting on behalf of or in connection with any organisation.
2. The action of any lawfully constituted authority in suppressing or attempting to suppress any such act, of terrorism or in minimising the consequences thereof.

1.  Loss by theft during or after the occurrence of any insured peril except as provided for in the Riot, Strike and Malicious Damage Clause.

2.  Loss or damage to property occasioned by its undergoing any heating or drying process.

3.  Loss or damage occasioned by or through or in consequence of

1. the burning of property on order of any public authority
2. Subterranean fire.

4.  Loss of damage directly or indirectly caused by or arising from or in consequence of or contributed to by nuclear weapons material.

5.  Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by ionising radiations or contaminations by radio-activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this Exclusion only, combustion shall include any self-sustaining process of nuclear fission.

6.  Loss or damage to any electrical machine, apparatus, fixture or fitting (including electric fans, electric household or domestic appliances, wireless sets, television sets and radios) or to any portion of the electrical installation, arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage or electricity, from whatever cause (lighting included) provided that this exemption shall apply only to the particular electrical machine, apparatus, fixture, fitting, or portions of the electrical installation so affected and not to other machines, apparatus, fixtures, fittings, or portions of the electrical installation which may be destroyed or damaged by fire so set up.

7.  Loss or damage occasioned by or in consequence directly or indirectly, of any of the following occurrences, namely,

1. War, invasion, act of foreign enemy hostilities or warlike operations (whether war be declared or not), civil war,
2. Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power.

8.  Loss or damage to bullion’s or unset precious stones, any curios or work of art, for an amount exceeding Rs.1000/- manuscripts, plans, drawings, patterns, models, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of account or other business books, computer system records, explosives, unless otherwise expressly stated in the policy.

9.  Property insured if removed to any building or place other than in which it is herein stated to be insured except Machinery and Equipments temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days.

1. Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind of description whatsoever.
2. Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation or omissions of any kind.
3. Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation commandeering or requisition by any lawfully constituted authority.
4. Loss or damage occasioned by permanent or temporary dispossession of any building or plant or unit or machinery resulting from the lawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same.

1. THIS POLICY shall be violable in the event of mis-representation, mis-description or non-disclosure of any material particular.
2. All insurance under his policy shall cease on expiry of seven days from the date of fall or displacement of any building or part thereof or of the whole or any part of any range of building or of any structure of which such building forms part.

PROVIDED such a fall or displacement is not caused by insured perils loss or damage by which is covered this policy or would be covered if such building, range of buildings or structure were insured under this policy. Notwithstanding the above, the company, subject to an express notice being given as soon as possible but not late than 7 days of any such fall or displacement, may agree to continue the insurance subject to revised rates, terms and conditions as may be decided by it and confirmed in writing to this effect.

3. This insurance may be terminated at any time at the request of the insured, in which case the company will retain the premium at customary short period rate for the time the policy has been in force. This insurance may also at any time be terminated at the option of the Company on 15 days notice to that effect being given to the Insured, in which case the company shall be liable to repay on demand a ratable proportion of the premium for the un-expired term from the date of the cancellation.
4. (1) On the happening of any loss or damage the insured shall forthwith give notice thereof to the company and shall within 15 days after the loss or damage or such further time as the company may in writing allow in that behalf, deliver to the company.
1. A claim in writing for the loss or damage containing as particular an account as may be reasonably practicable of all the several articles or items or property damage or destroyed, an of the amount of the loss or damage thereto respectively, having regard to their value at the time of the loss or damage not including profit of any kind.
2. Particulars of all other insurances, if any.

The insured shall also at all time at his own expense produce, procure and give to the company all such further particulars, plans, specification books, vouchers, invoices, duplicates or copies thereof, documents, investigation reports (internal/external), proofs and information with respect to the claim an origin and cause of the fire and the circumstances under which the loss or damage occurred and any matter touching liability or the amount of the liability of the Company as may be reasonably required by or on behalf of the Company together with a declaration and oath or in other legal from of the truth of the claims an of any matters connected therewith.

No claim under this policy shall be payable unless the terms of this condition have been complied with.

1. The Company reserves the right to treat the claim as no claim if no information/documents are submitted by the insured within a period of 6 months from the date of loss.
2. In no case whatsoever shall the Company be liable for any loss or damage after the expiration of 12 months from the happening of the loss or damage unless the claim is the subject of pending action or arbitration; it being expressly agreed and declared that if the Company shall disclaim liability for any claim hereunder and such claim shall not within 12 calendar months from the date of the disclaimer have been made the subject matter of a suit in a court of law then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
5. On the happening of loss or damage to any of the property insured by this policy, the Company may:-
1. enter and take and keep possession of the building or premises where the loss or damage has happened.
2. take possession of or require to be delivered to it nay property of the insured in the building or on the premises at the time of the loss or damage.
3. keep possession of any such property and examine, sort, arrange, remove or otherwise deal with the same.
4. sell any such property or dispose of the same for account of whom it may concern.

The powers conferred by this condition shall be exercisable by the Company any time until notice in writing is given by the insured that he makes o claim under the policy, or if any claim is made, until such claim is finally determined or purported exercise of its powers hereunder, incur any liability to the insured or diminish its rights to rely upon any of the conditions of this policy in answer to any claim etc.

If the insured or any person on his behalf shall not comply with the requirements of the Company or shall hinder or obstruct the Company, in the exercise of its powers hereunder, all benefits under this policy shall be forfeited.

The Insured shall not in any case be entitled to abandon any property to the Company whether taken possession of by Company or not.

6. If the claim be in any respect fraudulent, or if any false declaration be made or used in support thereof or if any fraudulent means or devices are used by the insured or any one acting on his behalf to obtain any benefit under the policy or if the loss or damage be occasioned by the willful act, or with the connivance of the insured, all benefits under this policy be forfeited.
7. If the company at its option, reinstate or replace the property damaged or destroyed or any part thereof, instead of paying the amount of the loss or damages, or join with any other Company or Insure(s) in so doing, the Company shall not be bound to reinstate exactly or completely but only as circumstances permit and in reasonably sufficient manner, an in no case shall the Company be bound to expend more in reinstatement than it would have cost to reinstate such loss or damage nor more than the sum insured by the Company thereon.

If the Company so elect to reinstate or replace any property, the insured shall at his own expense furnish the Company with such plans. Specifications, measurements, quantities and such other particulars as the Company may require, and no acts done, or caused to be done, by the company with a view to reinstatement or replacement shall be deemed an election by the company to reinstate or replace.

If in any case Company shall be unable to reinstate or repair the property hereby insured, because of any municipal or other regulations in force affecting the alignment of streets or the construction of buildings or otherwise, the Company shall in every such case, only be liable to pay such sum as would be requisite to reinstate to its former condition.

8. The insured shall at the expense of the Company do an concur in doing, and permit to be done, all such acts and things as may be necessary or reasonably required by the Company for the purpose of enforcing any rights and remedies or of obtaining relief or indemnity from other parties to which the Company shall be or would become entitled or subrogated, upon its paying for or making good any loss or damage under this policy, whether such acts and things shall be or become necessary or required before or after his indemnification by the Company.
9. If at the time of any loss or damage happening to any property hereby insured there be any other subsisting insurance or insurances, whether effected by the insured or by any other person or persons covering the same property, this Company shall not be liable to pay or contribute more than its rateable proportion of such loss or damage
10. If the property hereby insured shall at the breaking out of any insured peril, be collectively of greater value than the sum insured thereon, then the insured shall be considered as being his own insurer for the difference, and shall bear a rateable proportion of the loss accordingly. Every item if more than one of the policy shall be separately subject to this condition.

Provided, however, that if the sum insured hereby on the property insured shall at the operation of any of the perils insured under this Policy or at the commencement of such destruction or damage be not less than 85% (eight-five percent) of the collective value of the property insured, this condition shall be of no purpose and effect.

11. If any dispute or difference shall arise as to the quantum to be paid under this Policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of a sole arbitrator to be appointed in writing by the parties to or they cannot agree upon a single arbitrator within 30 days of any party invoking arbitration the same shall be referred to a panel of three arbitrators, comprising of two arbitrators, one to be appointed by each of the parties to the dispute/difference and the third arbitrator to be appointed by such two arbitrators and arbitrator shall be conducted under and in accordance with the provisions of the Arbitration and Concilliation Act, 1996.

It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as herein before provided, if the company has disputed or not accepted liability under or in respect of this policy.

It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this policy that the award by such arbitrator/arbitrators of the amount of the loss or damage shall be first obtained.

12. At all times during the period of insurance of this policy the insurance cover will be maintained to the full extent of the respective sum insured in consideration of which, upon the settlement of any loss under this policy, pro rata premium for the unexpired period from the date of such loss to the expiry period of insurance for the amount of such loss shall be payable by the Insured to the Company.

The additional premium referred above shall be deducted from the net claim payable under the policy. This continuous cover to the full extent will be available notwithstanding any previous loss for which the Company may have paid hereunder and irrespective of the fact whether the additional premium as mentioned above has been actually paid or not following such loss. The intention of this condition is to ensure continuity of the cover to the insured subject only to the right of the company for deduction from the claim amount, when settled of pro-rata premium to be calculated from the date of loss till expiry of the policy.

Notwithstanding what is stated above, the Sum Insured shall stand reduced by the amount of loss in case the insured immediately on occurrence of the loss exercises his option not to reinstate the sum insured as above.

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