Cruise Ship Sexual Assault BLOG

A lot has happened in the less than 2 weeks since the Costa Concordia disaster.  There has been the monumental resuce effort, which in many ways is still ongoing.  There has been the storyline of the showboating captain, the attempt by the cruise line to displace culpability, and the heart wrenching stories of chaos and lives lost.  But, even now it is not too soon to begin to ask  “How Much Will The Costa Concordia Disaster Cost?”

First, we deal with the economic impact of the loss of the ship itself.  Costa Cruise Lines has previously stated that they are not sure if the ship will be a total loss, or whether it can be salvaged.  Assuming it is considered a total loss, the cost for the ship alone could run into the several hundreds of millions of dollars.  Though the ship doubtless has insurance, there will probably be some kind of fight with the insurance company over the payout.

Second, we look at the environmental cost, and the cost of the clean-up.  The ship ran aground in one of Eurpoe´s most pristine marine habitats.  It is already said to be leaking oil into the water, and weather conditions threaten to sink the ship completely.  The cost of the clean-up for the environment, and the removal of the ship will certainly run into the tens of millions of dollars.

Finally, we consider the human cost.  At least a dozen people lost their lives in the accident, and about 20 more are still missing.  There has been some question as to the maximum compensation each passenger is able to seek because the cruise contract can be very restrictive to passengers seeking damages.  It has been reported that maximum damges are limited to $71,000 per person.

Check out this quote on CruiseCritic.co.uk – which includes a quote from our own Jack Hickey.

An Italian consumer protection agency, Codacons, said Tuesday that 70 passengers have already joined a class-action lawsuit against Costa. In a statement, Codacons head Carlo Rienzi said the “objective is to get each passenger at least 10,000 euros (~$12,900) compensation for material damage and also for … the fear suffered, the holidays ruined and the serious risks endured.” Maritime attorney Jack Hickey told Cruise Critic it’s likely additional suits will be filed. “Civil lawsuits are based on negligence,” said Hickey, “and there’s no doubt that the negligence is due to the captain — and of course [Costa] is responsible for the actions of its employee.”

Expect this limit to be challenged in court.  Not only are there legal reasons to challenge it, but from a public relations standpoint, Carnival Cruise Lines, the parent company of Costa Cruise Lines, may pay out more.

Overall, this is easily a $100 million disaster, though the costs seem to have very little upward limit.  Depending how the courts rule as far as liability, and whether the ship is a total loss, the total cost could be significantly more.

Tags: Carnival Cruise Lines, Cruise Disaster Cost, Cruise Disaster Liability, Cruise Victim Compensation

This entry was posted on Sunday, January 22nd, 2012 at 9:13 am and is filed under Cruise Line Safety, Cruise News . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.