Page 24 - Insurance Times January 2024

Historical

Maritime

Fraud

Dr. Soumi Mukherjee
SS Leonita- A shortcut for earning
money but what about luck!!

"Marine insurance is necessary to keep the safety of the ships which transport various goods of
varying costs and purpose. Marine insurance covers the physical loss or damage of ships, cargo,
terminals, and any transport by which the property is transferred, acquired, or held between the
points of origin and the final destination."

M arine insurance is necessary to keep the manufacturing shipyard, located at Newark, New Jersey's
Port of Newark. It operated as a subsidiary of the Electric
safety of the ships which transport various
Boat Company, now General Dynamics Electric Boat. It was
goods of varying costs and purpose. Marine
insurance covers the physical loss or damage
of ships, cargo, terminals, and any transport by which the part of the wartime shipbuilding program of the Emergency
Fleet Corporation (EFC) to restore the nation's Merchant
property is transferred, acquired, or held between the points Marine. As part of this program, EFC placed orders with
of origin and the final destination. nation's shipyards for a large number of vessels of standard
designs. Design 1023 cargo ship was a standard cargo
A valued marine policy is a type of marine insurance freighter of approximately 5,300 tons deadweight designed
coverage that places a specific value on the insured property, by Submarine Boat Corp. and adopted by USSB.
such as the hull or cargo of a shipping vessel, prior to a claim
being made. In the event of a loss, a valued marine policy The Submarine Boat Company was founded in April 1915 to
will pay a specified, pre-determined amount.provided, of meet the demand for ships for World War I. It built the 'Design
course, that there are no traces of fraud. That means if the 1023' ships, which were merchant steel-hulled cargo ships,
insured item depreciates in value, it will not affect the from 1917 to 1922. The Company had to complete the ships
amount which can be claimed in the event of a total loss.and quickly as they had other shipyards prefabricate about 80%
vice versa. Valued marine policies differ from unvalued of the hull. The Submarine Boat Company worked with the
marine policies, which only assess property value and Merchant Shipbuilding Corporation in Bristol, Pennsylvania,
damages after the policyholder files a claim. and American International Shipbuilding, in Hog Island,
Philadelphia, Pennsylvania. During World War I, at its peak,
After the United States entry into World War I, a large the shipbuilding company employed 25,000 people. The
shipbuilding program was undertaken to restore and Submarine Boat Company had received a 150-shipbuilding
enhance shipping capabilities both of the United States and contract from the United States Shipping Board (USSB)'s
their Allies. Submarine Boat Company (Submarine Boat Emergency Fleet Corporation, and 118 ships were completed
Corporation) was a large-scale World War I ship before the contract was cancelled.

22 January 2024 The Insurance Times