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5. On the date of fire, the Respondent/Claimant had certain subsisting insurance policies covering all its manufacturing units located at various locations including the Srikakulam Plant i.e. the place of incident. The insurance policies held by the Respondent/Claimant are-

i. Standard Fire and Special peril policy in respect of Building, Plant and Machinery, furniture, fixtures and fittings (BPM Policy) issued on 23 April 2012 under policy schedule no. 462890/11/2013/4 for the insurance period 01 April 2012 to 31 March 2013. The total sum insured under the policy was Rs. 368,18,35,081 for which the claimant had paid the premium of Rs.27,80,003.00 ii. Standard Fire and Special peril policy in respect of Stock on Floater Declaration Basis (Stock Policy) issued on 01 August 2011 under policy schedule no. 462890/11/2012/8 for the insurance period 01 August 2011 to 31 July 2012. The total sum insured under the policy was Rs. 110,00,000 for which the claimant had paid the premium of Rs. 8,02,178 iii. Loss Of Profit (LOP) Policy issued on 31 March 2012 under policy schedule no.462890/11/2013/3 for the insurance period 01 April 2012 to 31 March 2013. The total sum insured under the policy was Rs. 180,00,00,000 for which the claimant had paid the premium of Rs. 11,98,593.

65. Learned counsel for the Respondent submitted that the dispute before the Learned AT concerned the Respondent‟s claim under the Fire Loss of Profits Policy ("LOP Policy"), issued on 23 April 2012, for the period 1 April 2012 to 31 March 2013, for a sum insured of Rs.180 crores.

66. Learned counsel submitted that the purpose of taking a Loss Of Profit Insurance was that if and when a material damage occurs, the Signed By:PALLAVI VERMA Signed By:DINESH KUMAR SHARMA Signing Date:21.02.2025 19:52:32 Signing Date:21.02.2025 19:50:37 Respondent should be indemnified for its loss of profits in the business that it would have made, but for the material damage during the indemnity period. It was also submitted that the Respondent had also obtained a BPM/Fire Policy and Stocks Policy (referred to as the "MD Policies") for which the Respondent initiated a separate arbitration proceeding and in respect of which a separate petition is pending before this Court bearing OMP (COMM) No.421/2020.

Policy no :426890/11/2012/8 Type of policy : Standard Fire & Special Perils Policy. Period of insurance :01.08.2011 to 31.07.2012 Sum Insured :Rs, 110,00,00,000/-

Description of risk : On stocks of finished goods, raw materials and packing materials, on Floater Deel. Basis, pertaining to insured's trade at their various locations as per list attached with the policy Perils covered: The aforesaid policy is subject to various clauses/warranties such as Floater Declaration, Earthquake (fire & shock) and Agreed Bank clause etc. Note: in respect of the above policy, the insured contended that the sam insured declared by them includes value of stock in process, which however is not found mentioned on the face of the policy. In respect of the insured made the representation to underwriters along with correspondences exchanged by them with underwriting office, at the time of last renewal of the captioned policy. The insured also argued that the declared value of all stocks & stock in process, held in their all the plants submitted monthly to the bankers. However, the underwriters have not agreed to the insured's request to consider the coverage of stock in process. Further, we also observed that the said policy is subject to floater declaration clause, which is not granted to cover stocks in process.