Basic fire policy doesn't cover self-ignition

The National Commission, on reviewing the Fire and Standard Perils Policy, found that spontaneous combustion is excluded unless additional coverage for it is specially purchased

Sanjay Foods, which had its office in Jalgaon, manufactured oil and oil cakes using cotton seeds purchased from ginning and pressing units. It obtained a Standard Fire and Special Perils Policy from United India Insurance, valid from March 6, 2011, to March 5, 2012. The policy covered the building for Rs 95 lakh; plant, machinery, and accessories for Rs 40 lakh; and stock for Rs 2 crore.

During the policy’s tenure, on June 4, 2011, a sudden fire broke out in the factory. It was controlled with the help of the fire brigade. A first information report (FIR) was immediately lodged