Compensation for ship accident

Wednesday 09 July 2025 1:00 AM IST

The Kerala government has approached the High Court, demanding compensation of Rs 9,531 crore from the MSC company, which owned the ELSA-3, a ship that met with an accident and sank in the Arabian Sea off the coast of Kerala.

The government made this demand based on the severe environmental and economic damage caused by the incident. Justice Abdul Hakeem, who considered the admiralty suit filed by the state government, has ordered a freeze on the movement of another vessel named AKITETA-2 owned by the same company, which is currently anchored at Vizhinjam. The court also instructed that the ship can be released only after a decision is made regarding the compensation claim. Additionally, the state has requested interim relief with six per cent interest until the final verdict is reached, considering the potential delay in the settlement of the compensation case.

Despite efforts by both the state and central government departments to prevent the sinking of the ship, those attempts were unsuccessful. The ship, which had listed 38 nautical miles off the coast of Kochi, was completely submerged in the Arabian Sea, and containers left on board were scattered into the sea. The specialized vehicles of the Coast Guard undertook several operations to prevent the fuel from leaking into the sea. Measures included deploying floating pipe booms to block the spill and using special chemicals to prevent the fuel from spreading in the water. Fuel mixing with the sea has the potential to destroy the habitat of marine life in the affected area.

The drifting containers eventually washed up along the coasts of Alappuzha, Kollam, and Thiruvananthapuram, causing widespread concern among local communities. Fishing, which is the main livelihood in these coastal areas, was disrupted for weeks. The plastic particles and debris from the containers created significant environmental damage. The company has yet to provide a clear account of what exactly was inside the containers, leading to speculation and public fear, resulting in people refraining from buying or consuming seafood for several days. Experts had warned that some of the containers carried hazardous chemicals and pesticides that could pose serious health risks, with far-reaching consequences for the marine environment, Kerala's coastline and even the atmosphere.

Some of these chemicals are harmful to both humans and wildlife and can leave long-term effects on the soil and water. The company cannot evade responsibility for the environmental and economic loss suffered by Kerala. As the legal proceedings could drag on due to technical complexities and potential international legal interventions, the government must handle the case with utmost vigilance and preparedness.