(1)every Warehouseman shall have and maintain in respect of each Warehouse for which an application for a licence has been made net assets not being the cash or Government securities furnished as security under Rule 8 liable for payment of any indebtedness arising out of his business as a Warehouseman, to the extent of at least rupees fifty per 1,000 cubic feet storage capacity of the licensed Warehouse. Such assets may also consist of movable or immovable property of the required valuation. In case buildings, machinery or merchandise are induced in such assets, the Warehouseman shall keep them insured against any loss or damage with Tariff Insurance Company as defined under Insurance Act, 1938 (IV of 1938).Note. - In case of Warehouses other than those covered by the provisions of the Warehousing Corporation Act, 1962, the determination of the Insurance Company, will be in the discretion of the Licensing Authority.
