The Suez Canal Authority’s (SCA) claims to pay $916 million in compensation for blocking the artery is unfounded, the Ever Given UK P&I Club, an insurance company, has said. Earlier, the management of the channel estimated the damage from the stranded container ship at $1 billion and arrested the ship before paying all compensation.

“Despite the size of the claim, which is largely unsubstantiated, the ship’s owners and its insurers negotiated in good faith with the Suez Canal management. On April 12, SCA made an elaborate and generous offer to settle the dispute. We are disappointed with SCA’s subsequent decision to arrest the vessel, “ the company said in a statement. The amount of compensation offered by the insurers is not specified.

As the company added, in a lawsuit to the court demanding compensation, the management of the Suez Canal indicated that $300 million should be paid as a “bonus for saving the ship”, and another $300 million for “loss of reputation”. The SCA did not provide any other justification. The insurer continues to negotiate with the channel administration.

One of the world’s largest container ships Ever Given ran aground in the Suez Canal on March 23. It was only possible to get it off the shoal on March 29. For six days, a traffic jam formed in the channel from ships, container ships, and oil tankers. Full traffic on the artery was restored only by April 3.