(1) Where a pledge is destroyed or damaged by or in consequence of fire, the Pawn Broker shall nevertheless be liable on application made within the period during which the pledge would have been redeemable, to pay the value of the pledge, after deducting the amount of the principal and interest.
Explanation:- For the purpose of this sub-section, the value of the pledge shall be its estimated value entered in the pledge book at the time of the pawn together with interest on the amount of the principal and shall in no case be less than the aggregate of the amount of the principal and interest and twenty-five per cent on the amount of principal.
(2) A Pawn Broker shall be entitled to insure to the extent of value so estimated.
Explanation:- For the purpose of this sub-section, the value of the pledge shall be its estimated value entered in the pledge book at the time of the pawn together with interest on the amount of the principal and shall in no case be less than the aggregate of the amount of the principal and interest and twenty-five per cent on the amount of principal.
(2) A Pawn Broker shall be entitled to insure to the extent of value so estimated.
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · Pawn broker to obtain licence.Section 4 · Granting and refusal of licence.Section 5 · Pawn brokers to exhibit their names.Section 6 · Change of place of business by pawn broker.Section 7 · Interest chargeable by pawn broker.Section 8 · Pawn ticket to be given to pawner.India Code, Government of India. Text fetched 19 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.