Section 18. Insurance of goods in warehouses

(1) Every warehouseman shall insure such class of goods stored in his warehouse, in such manner and against such events as may be prescribed. Provided that nothing in this section shall apply to the goods deposited in a warehouse belonging to a Warehousing Corporation established under the Agricultural Produce (Development & Warehousing) Corporations Act, 1956 (Central Act, 28 of 1956) such Warehouseing Corporation has agreed in the prescribed manner, to compensate the depositor against loss or damage arising from the prescribed events.