BISMI Electronics is a medium-sized business that sells electronic appliances and gadgets. They hold significant stock in their showroom and warehouse located in an urban commercial area of Delhi. On 10th June 2025, a bu

BISMI Electronics is a medium-sized business that sells electronic appliances and gadgets. They hold significant stock in their showroom and warehouse located in an urban commercial area of Delhi. On 10th June 2025, a burglary occurred at night at the godown. Thieves broke in after disabling the alarm system & CCTV and stole inventory worth ₹ 15,00,000. The company has a Burglary Insurance Policy in place with XYZ Insurance Co., with the following terms: Sum Insured: ₹ 20,00,000; Policy Type: Declaration Policy (Stock Value Declared Monthly); Monthly Declared Value for June 2025: ₹ 12,00,000; Policy Excess (Deductible): 5% of the Claim Amount Exclusions: Loss due to Employee Involvement, Losses without forcible entry, and under-insurance clause applies. Upon investigation, the insurer discovered the following: (a) There were signs of forcible and violent entry. (b) No evidence of employee involvement. (c) The actual value of stock at risk on the date of the burglary was ₹ 15,00,000. (d) The loss assessed and approved was ₹ 15,00,000. In view of the above information answer the following questions : Whether under-insurance applies in this case or not ?