Costa Cruises is offering €11,000 (£9,200) in compensation to passengers on the Costa Concordia which hit a rock and capsized off the Tuscan coast.
The sum is being offered for psychological damages to those passengers who were not injured in the incident, including children.
Those who were injured will be dealt with on an individual basis.
The cruise line is also offering to cover medical bills, plus transport and the cost of the cruise itself.
Those who accept the offer must agree to drop all future legal actions against Costa Cruises and will be paid within a week of accepting the offer.
An action suit in the US is demanding $160,000 (£105,000) per passenger.
At least 16 people were killed in the tragic collision, with 16 others still missing. There were 3,200 passengers and 1,000 crew members on board.
Click here to see the original article by Bev Fearis Friday 27th January 2012