why do we not get a shock?
Because the electric resistance of a human body is by orders of magnitude higher than the resistance of the steel pot.
why is it that current is converted to heat while it has a good conductor(say, steel) to flow through?
According to Maxwell–Faraday equation, changing magnetic field creates the electric field, i.e. the difference of the electric potential. Then, the difference of the electric potential creates electric current. Electric power = voltage * current. The voltage (the difference of the electric potential) only depends on the properties of the changing magnetic field. The current is defined by the Ohm's law. Lower the resistance, more current, more power.
For example, if you're trying to heat a glass pot, the changing magnetic field will still create the same electric field it'd do in a steel pot. But since glass is insulator, no electric current will flow, and (almost: dielectric heating is negligible @ the operating frequencies of induction cookers) no heating will occur.
P.S. Most funny thing will happen if you'll try to heat a super-conductive pot. To be honest, I'm not exactly sure what will happen.
This was a comment but it got too long..
With the level of information you can provide this is not a physics question at all.
10 kWh over 48hr may be very high or very low consumption, unless you have traced the circuits you don't know what that meter supplies.
The fact you run out of hot water tells us nothing useful at all about power consumption, it may suggest your tank is small or that your neighbours like to leave the hot taps running for fun.
If you want to pay the correct amount without getting another tank then you need to have a plumber install two flow meters on the water tank and install another power meter (your energy supply company will do that, It'll cost a fortune) then divide the bill based on the flow rate ratio.
Anything else is just wild guess work.
Though, that'll probably cost more than a whole new tank.
You just need to come to some agreement with your neighbour and/or landlord, get advice from the appropriate forum. The usual method is that power is included in the rent (rent is still a flat rate).
If you were unaware of the issue before moving in, you've been deceived. If you were in my country the tenancy disputes tribunal would certainly rule in your favour and the landlord would have to pay your bill.
Best Answer
Being a conductor is not enough, you also have to have some magnetic properties in order to induce current in some material. That's why not all pan "work" on an induction cooker.
Addendum
Bobby Bennett's answer show me that I have been a bit too concise in my previous answer. Here is a more complete one:
In conclusion, you can for sure induce current in your salted water and increased it when increasing it's conductivity with ions but without the "doping" due to ferromagnetic properties, you would not be able to heat it with a usual "kitchen" induction system.