January 16, 2012 / 10:31 AM / 7 years ago

Costa Concordia insured for $513 mln - sources

LONDON, Jan 16 (Reuters) - Stricken cruise ship Costa Concordia is insured for 405 million euros ($513 million) by insurers including XL and RSA, with specialist marine insurers providing additional cover for potential injury claims, industry sources said.

The Costa, a multistorey vessel carrying over 4,000 passengers and crew, ran aground and capsized off Italy’s west coast at the weekend, killing at least five and injuring dozens.

RSA and XL could not immediately be reached.

Analyst Joy Ferneyhough at Espirito Santo bank in London said injury and other liability claims could push the total cost to insurers as high as $1 billion, making it the biggest marine loss ever absorbed by the industry.

“Initial comments from various insurers and underwriters over the weekend suggest that the insurance loss from the Costa Concordia will likely be $500 million - $1 billion,” she wrote in a note on Monday.

Standard Club said it was one of several so-called P&I clubs - specialist marine insurers owned by shipping companies - providing cover to the Costa Concordia.

“As well as supporting our member we are giving the authorities full assistance in their response to the incident,” it said in a statement.

P&I clubs pick up liability claims triggered by shipping disasters, while commercial insurers provide cover for physical damage.

Individual P&I losses exceeding a certain threshold are pooled between the biggest P&I clubs, who in turn buy reinsurance in the event of losses exceeding a set ceiling. ($1 = 0.7895 euros) (Reporting by Myles Neligan; editing by Sudip Kar-Gupta)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below