A Norwegian marine insurer knew about the many safety flaws that resulted in the deaths of 159 people on the "Scandinavian Star" 25 years ago, but the company still insured the vessel, reports Danish newspaper Politiken.

The safety flaws were noted by Norwegian insurer Skuld's head of shipwrecks at the time, Erik Stein, around two weeks before one or more arsonists set fire to the vessel on April 7th 1990, reveals Erik Stein, after staying silent for 25 years, in a new book titled "The Fire - The Mystery of the Scandinavian Star" ("Branden – gåden om "Scandinavian Star").

Erik Stein inspected the ship in order to determine whether Skuld could issue a liability insurance before the vessel started operations between Frederikshavn and Oslo.

"You will not be allowed to carry passengers until I have been back on board and have approved the vessel, and before you have performed a fire and evacuation drill and I'm satisfied with that drill," Erik Stein told the ship's captain at the time.

But Erik Stein was never summoned to witness a drill or to see whether the safety issues had been resolved.

He did not hear more about Scandinavian Star until the vessel was on fire at sea - and not until then did he learn that Skuld's senior management had insured the ship against his recommendation.

He was never given an explanation from Skuld's management in Denmark.

Skuld's CEO at the time, Hans Levy, confirms that Erik Stein recommended not insuring the vessel until the issues on the ship had been resolved and a drill had been completed.

But Hans Levy does not believe that the list of shortcomings represented a major safety issue:

"The one could say that we should have been back up at Frederikshavn to perform a second inspection of the vessel. But we weren't," he tells Politiken.

The Danish Maritime Authority inspected the vessel after the fire and similarly noted the shortcomings. The Danish Maritime and Commercial court later ruled that the ship was suitable for sailing at the time when the accident occured.

Relatives of the victims who perished in the fire have on numerous occasions criticized the Norwegian authorities' investigation, stating that the fire was an attempt at insurance fraud.

Norwegian expert group "Investigating the arson on Scandinavian Star" has reached the same conclusion in the results of the group's efforts, presented on April 6th 2013.

Bereaved will press charges

Mike Axdal, who also serves as spokesman for the association Scandinavian Star's Danish Support Group, hopes that Erik Stein's disclosures can lead to further clarification in the case.

"It has been a dream scenario for many years to learn who helped cover this matter up," he says.

He is pleased that Erik Stein has come forward with the new information, though he adds that it happens 25 years too late.

"I respect the fact that he is speaking out now, but he should have presented this information in relation to the fire at the time. That would have placed this whole matter in a completely different light," says Mike Axdal.

He adds that he thus plans to press criminal charges against Erik Stein and Skuld on the basis of the new information that the insurers kept silent on the safety shortcomings.

"Now we can finally document that the insurance was issued in relation to the fire, in order to cover up the ownership and liability conditions of Scandinavian Star," says Mike Axdal, who will file the charges through the Norwegian police.

He explains that he will continue to work the case until the responsible parties have been found.

"I've been fighting for the past 25 years to unearth the truth. I lost my father and brother on that ship. I witnessed people suffering on that ship. My heart lies with all the survivors and the relatives. And not least with the people who lost their lives on board the ship," says Mike Axdal.

Vessel Scandinavian Star burst into fire on April 7th 1990 when sailing from Frederikshavn to Oslo. 158 of 482 passengers and crew perished. The fire is believed to have been started on purpose, though the perpetrator was never found.

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