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but the files and transcript of his trial were still classified for to have actually been "lost" at sea, was covered by
a long time. insurance.
The hull and machinery underwriters refused to accept the There were many conspiracy theories about the
claim for the loss of the vessel. Shell, being the party entitled coincidences. But that is the mystery of the Salem saga, also
to ownership and possession of the cargo of crude oil, also known as the fraud of the century.
instituted action for recovery of the market value of the cargo
from the cargo insurer. In fact, at the time of the incident, Maritime fraud poses a considerable threat to the shipping
Shells insurance claim, approximately USD$ 56 million was industry, and its effects can be severe in terms of finances
the largest single claim ever to have been made against and the environment. Therefore, shipping companies and
Lloyds of London. Since this was a negotiation between other relevant parties need to be mindful of the different
knights caused by a terrible misunderstanding, the blood did forms of maritime fraud and take proactive measures to
not come to the river. prevent them.
Three years later the South African government recognized This may involve instituting strong security measures,
before the parliament that, in addition to the $45 million verifying the authenticity of contracts and bills of lading, and
paid to the "sellers", "... an additional $30.5 million to Shell conducting thorough background checks on charterers and
in partial compensation for the loss". Yes, as they pointed other stakeholders. By learning from past maritime fraud
out other sources and seems to suggest arithmetic, money examples and implementing preventative measures,
to buy the ship also left South Africa, the total bill owed stakeholders can ensure the integrity and sustainability of
around 90 million, a ruin in commercial terms but not the global maritime transport system.
necessarily in strategic terms.
*I am thankful to Dr.S.Mukherjee, an Expert and
The government did not go into excesses details (the crude International Investigator for Maritime Fraud for his advice
oil purchases were literally a state secret), but the Minister
of Energy explained that his country was operating under Dr.Soumi Mukherjee completed her Graduation in Mass
Media and Masters in Mass Media from University of
the "extremely unfavourable conditions" in a market that,
even in Under ordinary circumstances, it was "always risky." Mumbai, later completed her Ph.d. She is interested in
Shell would have completely agreed, although in the end it Investigative Journalism related with History, Geography,
Zoology etc. She is currently serving in Media Officer
seems that got recovered all of their money, including the
value of the undischarged crude oil that, at the same time, with International Police Organization.
IRDAI looks to double policy trail to 1 month
You may soon get more time to read the fine print of your insurance policy and cancel it if it doesn't suit you. Insurance
regulator IRDAI has proposed to extend the 'free-look' period for policies from 15 days to a month. A free-look period
allows policyholders to evaluate their insurance policies after purchase and cancel them within a specified time frame
without a penalty, an insurance broker said.
This provision helps prevent mis-selling of insurance by providing policyholders with time to actually review the terms
and conditions of their policies, protecting them from pressure tactics and enabling them to reconsider their decisions
if they find the policy unsuitable or unnecessary.
Additionally, free-look period encourages insurance companies to be transparent in their sales practices, fostering trust
between insurers and policyholders. The proposed norms also mandate life and health insurers to gather nominations and
bank details of policyholders upfront, along with setting criteria for electronic policies. These proposals are part of the new
rules in the IRDAI (protection of policyholders' interests and allied matters of insurers) Regulations, 2024, which consoli-
date eight regulations. The broker added that besides including the free-look period, there should be increased aware-
ness about the availability of the facility and how to utilise it. Very often, the intermediary is not incentivised to inform
the customer about the availability of this feature.
28 March 2024 The Insurance Times
