Harry owns a book store named Ulat Buku Enterprise where he supplies revision books to schools and tuition centers. As a precaution, he took an insurance policy protecting his store against fire with Panas Insurance Company. In his application for the fire insurance, Harry stated that the store is used as a florist shop. One day, a fire broke out in Harry's shop. The investigation found out that the fire was caused by an explosion of fifty huge gas cylinders which were stored in the shop.

Advise whether Panas Insurance Company is liable to pay compensation under the insurance policy. In the course of your answer, explain the nature of a contract of insurance. Support your answer with the provisions in Financial Services Act 2013 and decided cases (if any). (10 marks)