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According to a report in the Bloomberg Businessweek analysts at Numis Securities Ltd. said the Costa Concordia accident is expected to be the most costly marine loss on record. Reports are estimating that the total insurance loss to be between $600 million and $800 million and the cruise ship’s hull insurance will pay out about $512 million. The article also cites sources stating that insurers are expected to pay out more than the $500 million paid out following the Exxon Valdez disaster off the coast of Alaska in 1989. These staggering amounts make the Costa Concordia disaster the largest marine loss on record.

In a statement earlier today Carnival said today that it is self-insured for the loss of the use of the vessel, which is insured for damage with a deductible of approximately $30 million. Its third-party personal injury liability insurance carries a deductible of approximately $10 million for this incident. The grounding will cost the company as much as $95 million, or between 11 cents and 12 cents a share in fiscal 2012, it said. “We are deeply saddened by this tragic event and our hearts go out to everyone affected by the grounding of the Costa Concordia and especially to the families and loved ones of those who lost their lives,” Carnival Chief Executive Officer Micky Arison said in the statement.

Reported by Anita Dunham-Potter (editor@www.expertcruiser.com)

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One Response to “Costa Concordia not salvageable – accident expected to cost between $600-800 million”

  1. James camera says:

    More than 100’s Millions of dollars, stupidity like this took many lives, story is just repeating again and again, as if we never learned from our mistakes…

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