(1) Where a pledge is damaged or destroyed by or in consequence of fire, the pawnbroker with whom the pledge was pawned shall, subject to the provisions of this Act, if the pawn-ticket in respect of the pledge is tendered to him before the expiry of the period within which the pledge would have been redeemable, pay to the ticket holder an amount equal to one-half of the amount of the loan.
(2) A pawnbroker shall have an insurable interest in a pledge to the extent of the sum of the amount of the loan and the interest and lawful charges thereon and one-half of the amount of the loan.
(3) A pawnbroker who fails to comply with subsection (1) of this section shall be guilty of an offence.