Swiss to Pay 50,000 Francs to Crans-Montana Fire Victims

(Bloomberg) — Switzerland will pay victims of the deadly bar fire in the Crans-Montana ski resort a “solidarity contribution” of 50,000 francs ($64,500) after the government concluded that the current support system for the affected is insufficient.

The sum will be paid out to everyone hospitalized as a result of the blaze and the relatives of those who died. Forty-one people died and more than 100 were injured in the fire, which took place during a New Year’s party in the Alpine town. The federal payment is in addition to 10,000 francs being paid by the canton of Valais.

“The Federal Council considers this an important sign of social solidarity and an expression of the federal government’s sympathy,” the government said Wednesday. The money is intended to give “rapid and unbureaucratic support, help bridge acute financial difficulties and provide short-term relief.”

It added that the system of victim support, as well as public and private insurance, is designed for individual cases and “is reaching its limits facing an event with a high number of casualties.”

The administration will also convene a roundtable of victims, insurers and authorities to find an out-of-court compensation solution for those affected so they can avoid lengthy legal battles. The government could contribute up to 20 million francs to these out-of-court settlements if a solution is found, it said.

But Justice Minister Beat Jans said that responsible insurers are still obliged to pay out insured sums, and any government assistance would be supplementary.

Local Swiss authorities in Valais have questioned the managers of the bar and local faced criticism for their handling of the investigation following the incident. Following protests from Italy, Swiss prosecutors have agreed to cooperate with their Italian counterparts in the probe.

(Updates with additional detail on payments, comment from minister.)

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