Section 4 in The Emergency Risks (Goods) Insurance Scheme
4. Compulsory insurance.
(1)Every person carrying on business in India as a seller or supplier of goods which have not been exempted under sub-section (2) of Section 3 shall take out a policy of insurance against emergency risks to the extent provided by the Act in respect of goods insurable under the Act which are from time to time owned or deemed to be owned by such persons in the course of such business:Provided that the taking out of such an insurance policy shall not be necessary if the insurable value of the said goods in any one and the same Presidency town or district is equipment to or less than the sum of fifty thousand rupees:Provided further that nothing in this scheme shall be deemed to require any person who is compulsorily liable to insure any goods in any Presidency town or district under this scheme (on the ground that their value in that Presidency town or district exceeds fifty thousand rupees) to insure any other goods situated in any other Presidency town or district compulsorily under this scheme unless the value of the goods situated in the latter Presidency town or district, as the case may be, exceeds fifty thousand rupees.(2)Where, as a result of the turn over of, or any change in, the stock of goods owned or deemed to be owned by a person who has taken out a policy of Insurance against emergency risks in respect of such stock of goods, there is a net increase after the issue of the policy of insurance, in the insurable value of such stock of goods, such person shall take out a further policy of insurance against emergency risks to the extent provided by the Act, in respect of such net increase insurable value of such stock of goods:Provided that a person who owns or is deemed to own insurable goods, the stock of which is likely to fluctuate, may, instead of taking out a policy of insurance for the actual value of the insurable goods existing at the time when the policy of insurance is taken out, take out policy of insurance under this scheme for the maximum amount beyond which the insurable value of the stock of insurable goods is not likely to fluctuate.
