Page 25 - Insurance Times March 2024

MT SALEM – The

Tanker: Insurance

Fraud or Accidental

Shipwreck Dr. Soumi Mukherjee

- Historical Maritime Fraud

"Maritime fraud can affect marine insurance in various ways. The most obvious, perhaps, is a
straightforward fraudulent insurance claim, for example where shipowners scuttle a ship to claim
on the hull insurance. But a fraudulent claim can be more subtle than this, for example where
the property insured is over-valued, or where there is deceit in the process of making the claim.
For the most part, fraudulent claims are dealt with by the principles of the common law."

S hipwrecks can carry many mysteries. The ocean Further advice from Lloyd's Intelligence advised that the ship

was laden with 193,000 tons of crude oil and had sunk in a
depths hold secrets of deception and intrigue,
position 12º 38' North,18º 34' West as a result of explosions.
where many ships meet its watery end, leaving
behind a legacy of fraud and mystery.
The year was 1979 and South Africa, still being in the throes
Maritime fraud can affect marine insurance in various ways. of Apartheid, was subject to a fuel embargo. At the time,
The most obvious, perhaps, is a straightforward fraudulent South Africa was under stiff international sanctions. Since,
insurance claim, for example where shipowners scuttle a the country had difficulties getting oil on the open market
ship to claim on the hull insurance. But a fraudulent claim and paid lots of money for it, sometimes twice the market
can be more subtle than this, for example where the price; it was desperate to get fuel into the country, the South
property insured is over-valued, or where there is deceit in African Strategic Fuel Fund Association (SASFFA) entered into
the process of making the claim. For the most part, an agreement with a company called American Polamax
fraudulent claims are dealt with by the principles of the International Inc. to purchase about 1.5 million barrels of
common law. Saudi Arabian light crude oil (or equivalent) to be delivered
in Durban in December of that year.
On January 17, 1980, a British ship ‘The Trident’ rescued
Captain Aimitrios Georoulis, Chief Engineer Antonios The conspirators behind this elaborate fraud controlled
Kalomiropoulos – both of Greek nationality – and 24 American Polamax and other special-purpose companies.
crewmen (Tunisians and Greeks) in the Atlantic Ocean, off The conspirators secured an advance payment from
the Senegalese coast. On 18 January, 1980 a report was Mercabank Ltd to finance the purchase of a vessel.
received from Lloyd's Intelligence advising that the Liberian They acquired the vessel “South Sun,” re-registered it as
tanker SALEM, a ship of about 215,000 tons deadweight, the “Salem,” and chartered it to an uninvolved party, Pontoil
had foundered on 17 January, 1980 near Dakar, West Africa. SA.

The Insurance Times March 2024 23