Fraud from Within
Members may come under pressure to collude in a fraud, particularly by issuing bills of lading which contain incorrect information, often to comply with the terms of a Letter of Credit. We mean the deliberate misdating, or issuance of "clean" bills of lading for cargo which is known to be damaged, or bills of lading marked "shipped on board" before the goods are loaded, or even issuance in the knowledge that the ship has sailed without the goods. This edition of the Claims Review does not contain examples of such claims for the simple reason that the Club cannot insure the liabilities arising from such actions.
The Club does, however, insure liabilities resulting from fraud by Member's employees for the employees' own benefit, and has paid US$5 million over the past five years.