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Costa Concordia - highest marine claim ever

Costa Concordia - highest marine claim ever
In January 2012 the Costa Concordia sank near the coast of Tuscany, Italy, causing 32 fatalities.  The ship which had a vessel of 951.5 feet and weighed 145.6 tons was carrying over 4000 passengers when it hit rocks.

This week, 20 months on, the ship has been detached from the rocks.  Engineers have never tried to lift such a huge ship close to the land before.  More than 50 enormous chains and winches are being used to break the ship – twice as heavy as the Titanic – away from the reef on which it has been laying. 

Italian authorities have announced that the ship must be removed intact rather than broken up before removal to avoid environmental damage.  This technique is increasing insurers’ and reinsurers’ costs, making the cruise ship disaster the costliest marine loss of all time.

The latest estimates suggest the cost of the disaster to insurers will exceed £1 billion.  The most expensive insured marine loss before the Costa Concordia sank was the Exxon Valdez in 1989, which cost insurers approximately £500 million.

According to a recent Lloyd’s of London report, the Costa Concordia salvage operation is “likely to be the most complex and expensive wreck removal operation of its kind.”

Capt. Rahul Khanna, a marine risk consultant at Allianz Global Corporate & Specialty in London said, “The engineering of the removal of this wreck is unique, it’s unprecedented.”

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