Survivors of the capsized cruise ship Costa Concordia are being offered just 11,000 (Rs 7.14 lakh) in compensation in return for not taking legal action.

Costa Cruises are offering more than 3,000 passengers the compensation for their lost belongings and psychological damage caused when the ill-fated luxury cruise ship hit a rock off the coast of Giglio, in Italy, on January 13.

The company have also pledged to refund the cost of the disastrous cruise and any transportation costs.
It is thought those with physical injuries will be dealt with individually.

As a further incentive for dropping legal action the company are offering passengers a 30 per cent discount on future cruises.

The offer has already been criticised by consumer group, Codacons, who have urged passengers not to accept the offer. Codacons are currently filing a multi-million pound law suit in Miami against the cruise ship's parent company, Carnival Plc, seeking 1,25,000 for each passenger.

Eleven people have so far been confirmed dead and 21 passengers and crew members are still unaccounted for following the disaster.