Costa offers €11k compensation for tragic cruise

The stricken cruise liner Costa Concordia off the Island of Giglio (EPA)

Costa Crociere SpA has offered passengers €11,000 apiece to compensate them for their lost baggage and psychological trauma after its cruise ship ran aground and capsized off Tuscany when the captain deviated from his route.

Costa, a unit of the world's biggest cruise operator Carnival Corp., will also reimburse passengers the full costs of their cruise, travel expenses and any medical expenses sustained after the grounding.

The agreement was announced Friday after a day of negotiations between Costa representatives and Italian consumer groups representing 3,206 people from 61 countries who suffered no physical harm when the Costa Concordia hit a reef on 13 January.

Passengers and crew are free to pursue legal action if they are dissatisfied with the deal.