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COSTA CONCORDIA Developments--P&I Comments, Operator Promises and Suits Filed

Lloyd's List reports that the ship COSTA CONCORDIA is part entered in the Steamship Mutual, on a 50/50 quota share with the Standard Club. Steamship Mutual has defended Carnival, Costa Cruises’ parent company, in a letter sent to members stating that over the years, the company has more than paid its way in premium to cover the cost of this casualty.

I have been asked how liability claims will be paid. Lloyd's List reports that the first $10 million is covered by Carnival’s $10 million deductible. From there, both Clubs will reportedly pay $4 million each before claims are then taken to the International Group pool of $60 million and on to reinsurers. It is reported that there has been much market speculation over how high the eventual P&I claim will be, with some arguing it could reach $1 billion.

More on this article can be viewed at

Lloyd's List also reports that Costa Crociere has offered to pay uninjured passengers $14,460 for “indemnification, covering all patrimonial and non-patrimonial damages, including loss of baggage and personal effects, psychological distress and loss of enjoyment of the cruise vacation”. The cruise line also intends to reimburse passengers for the value of the cruise, travel expenses to reach the port of embarkation and to return home, medical expenses and expenses onboard during the cruise. The package is not for crew, injured passengers or families who have lost loved ones.

The cruise line claims that this compensation package is higher than the current indemnification limits provided for in international conventions and laws currently in force. However, US lawyers have already sought in a putative class action a minimum of $160,000 per uninjured passenger on the grounds of the entire trauma associated with the incident. Injured passengers or loved ones of deceased passenger will want far more in damages.

A complete copy of this article can be seen at

Finally, the Miami Herald has reported  that six of the ship's passengers have filed lawsuits in U.S. federal court in Miami seeking hundreds of millions of dollars in damages. The lawsuit filed Friday seeking $460 million in damages names Costa Cruise Lines and its parent company Carnival Corp. Both companies have offices in South Florida.

A complete copy of the e-article can be seen here

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