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Italian Cruise Firm Offers Compensation To 'Costa Concordia' Passengers

Rescuers pass in a small boat near the stricken cruise liner "Costa Concordia" lying aground in front of Giglio Island off the coast of Italy.
The Italian firm that owns the capsized "Costa Concordia" cruise ship has offered passengers 11,000 euros ($14,000) each in compensation.

The deal comes after negotiations between the company Costa Cruises and Italian consumer groups.

The company also promised to refund the cost of the cruise as well as medical and travel expenses. Passengers and crew are free to pursue legal action if they are not satisfied with the deal.

The agreement does not cover those who were physically injured or lost their loved ones.

The "Costa Concordia" had more than 4,000 people onboard when it capsized off Tuscany on January 13.

Sixteen have been confirmed dead and another 16 are still missing.

compiled from agency reports