The All India Fire Tariff Advisory Committee is a statutory body responsible for Fire Insurance policies. Mr. ABC who owns a godown bought fire insurance one year ago. According to the agreement between the insurer and the insured the following conditions must be fulfilled by the insured to claim the insurance.

  1. For a new godown (not more than one-year-old) 50% of the storage capacity may be taken for calculating the fire insurance capacity.
  2. The warehouses storing agricultural produce upto 5000 tons should take the burglary policy for 20% of the value of the stocks.
  3. Warehouse receipts should have the name of the insurance company indemnifying for fire.
  4. The insured must submit documents showing the exact layout of the godown. If any changes are made in the structure of the godown the insured is required to update the changes within 7 days.
  5. The insured must submit a list of all the electrical appliances present in the godown. The list must not exclude faulty, not working, and unused appliances. (The list must be updated online within 48 hours)
  6. In case of an outbreak of fire, the insured must take all reasonable steps to extinguish the fire or prevent to spread it.
  7. Keep your all documents ready for inspection of the surveyor. 
  8. Do not alter the affected property unless required to safeguard or minimize loss, for inspection by surveyor and insurance company officials.
  9. Surveyor’s approval should be taken in writing for disposal/alternating the site of the affected property.

15 days ago an outbreak of fire happened in Mr. ABC's godown. It is found that he hasn't updated any documents since the last 45 days. His Fire Insurance claim was rejected by the insurer. What may be the possible reason for the rejection?

1
The capacity of the godown was 7000 tons but it was found that at the time of the outbreak there was 9000 tons agricultural produce stored in the godown.
2
Mr. ABC had made some changes in the structure of the godown 72 hours before the outbreak and he didn't inform about the changes to the insurer.  
3
Three weeks ago he installed an air conditioner to protect his perishable products.
4
During the outbreak he moved the raw material into another godown. 
5
He hasn't paid the last two installments of the policy.

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