Section 5(3) in Emergency Risks (Goods) Insurance Act, 1971
(3)The Scheme shall be such as to secure------(a)that the liability of the Central Government as insurer shall not extend to more than eighty per cent.of the insurable value of the property insurable;(b)that any liability of the Central Government as insurer under the Scheme is determined by a policy of insurance issued, in the form and in respect of a period not exceeding the period specified in the Scheme, by a person acting on behalf of the Central Government:Provided that the form of policy may be such as to limit the extent and nature of the indemnity provided by the Central Government and to impose conditions subject to which the indemnity is provided:Provided further that the form of policy shall be such as to provide that no liability shall arise thereunder unless the premium in relation to the period in which any loss or damage occurs has been paid before the occurrence of such loss or damage;(c)that any premium under a policy so issued is payable at a rate not exceeding three per cent.per annum of the sum insured as may be specified in the Scheme; and(d)that the amount of any one premium payable under a policy so issued is not less than such sum as may be specified in the Scheme.
