Section 19(7) in The Sugar Development Fund Rules, 1983
(7)Every occupier of a sugar factory shall insure the buffer stock so set apart, against such risks as may be required by the Bank with which the buffer stock is pledged for the purpose of securing loan, as also from floods where the premises of the sugar undertaking are ordinarily exposed to the risk of floods:[Provided that where the occupier of a sugar factory has not pledged the buffer stock with a Bank, he shall insure the buffer stock against destruction or damage by:(a)Fire;(b)Explosion of boiler used for domestic purposes only;(c)Lighting;(d)Explosion of gas used for domestic purposes or for lighting, heating in a building not forming part of any gas works at any time;(e)Floods where the premises of the sugar factory are ordinarily exposed to the risk of floods]
