The insurance liabilities, related to the wrecked vessel Costa Concordia, can exceed 1 billion of US dollars for the insurance industry and for the owner of the ship, Bllomberg announces. This amount may swell up with the expected personal injury compensation claims, environmental damages, and the costs of salvaging the ship that are not included in the aforementioned figure, Moody’s Investors Service notes.
Submersion of Costa Concordia “marks the first major insured loss of 2012 and will result in a drag on first-quarter 2012 earnings for affected firms,” figures out James Eck from Moody’s.
The preliminary estimates for the damages were set at 500 million of US dollars, but after reevaluation, it was noted that these forecasted figures encompass the material losses only. It was also considered that the expected personal injury claims and potential environmental damage compensation claims may cost the insurers of the wrecked vessel approximately 1 billion of US dollars. Another agency, Jefferies International, estimates the amount of the actual total loss at 650 million Euros ($850 million.)
The luxurious cruise vessel Costa Concordia, owned by the largest cruise ship operator in the world Carnival Corporation & plc, hit the underwater rocks and run aground near the small Italian Gilio Island on January 13, 2011. There were more than 4200 passengers on board, including nearly 1000 crew members, who were evacuated. The accident led to the death of at least seventeen people, other twenty-four were declared missing and 2200 metric tons of heavy fuel oil still threatens the Italian coast with environmental catastrophe.