Sharma Textiles Ltd., a large garment manufacturing company, has a Standard Fire Insurance Policy with a sum insured of ₹5 crore and an additional Consequential Loss Insurance cover for business interruption losses. In M

Sharma Textiles Ltd., a large garment manufacturing company, has a Standard Fire Insurance Policy with a sum insured of ₹5 crore and an additional Consequential Loss Insurance cover for business interruption losses. In March 2023, a fire broke out in the factory due to a short electrical circuit, destroying machinery, raw materials, and finished goods. The total estimated material damage was ₹6 crore, while the company's operations remained halted for three months, leading to a loss of ₹2 crore in net profits. Upon claim assessment, the insurer noted: The factory was underinsured by 20%, based on actual property values. The claim documents for consequential loss were incomplete, delaying approval. The company did not implement recommended fire prevention measures, raising concerns about policy compliance. Based on the information, answer the following questions: Given that Sharma Textiles Ltd. was underinsured by 20%, calculate the final claim amount approved by the insurer under the fire insurance policy.