Insurance industry payouts related to sinking of cruise liner Costa Concordia on 13 January last year have continued to rise and are likely to top $1.1 billion as salvaging of the wreck continues, reinsurer Munich Re was cited by the Reuters new agency as saying on Tuesday.
The ship itself was covered by Hull & Machinery insurance that valued it at $500 million. Liability cover, including removal of the wreck, is covered by Protection & Indemnity insurance that is provided by P&I clubs, which are mutual institutions. In the case of a major shipping accident, parts of both covers will end up on the reinsurance market.
The 114,137 gross ton Costa Concordia hit rocks on the west coast of Italy and capsized later. Its half submerged wreck is being removed by salvage contractors. The accident claimed 32 lives, but more than 4,000 persons were evacuated from the ship alive.
On 20 July, two officers, the helmsman, the head of cabin service and the head of the crisis team were given up to two years and 10 months in jail for multiple manslaughter, negligence and shipwreck. Francesco Schettino, master of the vessel, is facing a separate trial.