Costa Cruises has offered an €11,000 compensation package to Costa Concordia passengers to cover “psychological distress” and all costs associated with the cruise including lost luggage.

The payment of around £9,000 extends to all the 3,206 passengers who survived the accident – which happened a fortnight ago – including non-fare paying children.

The families of those who died or anyone injured who required medical treatment will be covered under a separate proposal.

The deal was struck following negotiations with the cruise line and various Italian consumer groups.

However, one group is urging passengers not to accept the offer and is seeking payouts of more than £105,000 per person.

The cruise line again reiterated its profound condolences to everyone affected by the accident in a statement released earlier today.

On Tuesday another body was found inside the wreck of the ship, bringing the death toll to 16. At least 16 others remain missing.

Costa Concordia ran aground off the Tuscan island of Giglio on 13 January with more than 4,200 people on board.

The line has repeatedly blamed Captain Francesco Schettino for committing “grave errors of judgement” by steering the ship too close to the island.

Schettino denies all wrongdoing and is currently under house arrest in Italy.

How will the Costa Concordia accident affect your cruise travel plans?