LONDON — Britain’s Ministry of Defense said yesterday that it had breached the human rights of an Iraqi hotel worker who died in custody and agreed to pay compensation which could reach more than $2 million.

Another eight Iraqis are likely to receive substantial payments after the ministry admitted that they were abused by troops from the queen’s Lancashire Regiment following a raid on a Basra hotel after the invasion of Iraq in 2003.

Baha Mousa, the receptionist at the hotel, suffered 93 separate injuries and died in custody. Eight survivors of the raid, who were also taken to a British army base and assaulted, joined his family in lodging a series of compensation claims at the High Court in London.

The Ministry of Defense announced yesterday that it would not contest the claims, and would pay compensation. The department refused to give details of the amount, although the family of Mousa is thought to have applied for more than $2 million.

It is thought that the ministry could have avoided making such large payments if it had initially offered a more generous sum to Mousa’s father and the dead man’s two young sons.

The Daily Telegraph has learned that British officials only offered about $8,000 in full compensation to the family following the death.

The Defense secretary, Des Browne, said the ministry had breached article two of the European Convention on Human Rights, the right to life, in relation to Mousa.

The eight other men and Mousa’s father, Dawood Al-Maliki, were found to have had their human rights violated under article three of the Convention, which prohibits torture.

Mr. Maliki will receive additional compensation for the trauma of losing his son.

Mr. Browne said: “The Ministry of Defence further accepts that the admitted substantive breaches of the Convention give rise to claims to compensation.”