Liability of pawnbroker in case of theft or fire

Liability of pawnbroker in case of theft or fire.―

1. (1) Where a pledge is lost by theft or destroyed or damaged by or in consequence of fire, the pawnbroker 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.
2. (2) Every pawn broker shall, on taking a pledge in pawn, insure the pledge with him with any company or corporation which is authorised by law for such insurance, for an amount not less than the market value of such pledge. Explanation.― For the purposes of this sub-section, the value of the pledge shall be its estimated value, if any, 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 the principal.