According to a spokesperson for Kenneth Feinberg, Amy Weiss, the GM compensation program has received 107 death claims until August 26, 2014. These claims are a part of 309 claims that have been submitted for compensation for accidents caused by a faulty ignition switch in General Motors Company (NYSE:GM) cars.
General Motors Company (NYSE:GM) agreed to pay compensation under the Feinberg Program, which was released on June 30, 2014 with the purpose to cover all GM ignition switch recalls. The program started accepting the claims on August 1, 2014 and it will continue doing so until December 31, 2014. Under the plan, Feinberg and his staff would evaluate every single claim and find out whether the ignition problem was responsible for the accident or not. Feinberg will have the final say in the matter and he will decide compensation accordingly. It will take anywhere between 90 to 180 days in identifying the eligibility of a claim.
Unlike the claim of 13 deaths by the faulty-ignition switch from General Motors Company (NYSE:GM), the claims have already exceeded 100 as per the current program. Jere Beasely, lawyer of parties submitting claims, commented that the rate of claim filing is much less than the anticipation and probably because the lawyers are waiting to find out the amount of compensation offered under the program. Even Feinberg said that the claims will be higher both in the initial as well as end period of the claim filing deadline.
According to the program, death claims will receive at least $1 million and the amount might increase depending upon dependents and similar factors. General Motors Company (NYSE:GM) has set apart $400 million without capping for the program. People agreeing to the amount of compensation will waive off their right to sue to company.
This article has been written by Prakash Pandey and edited by Serkan Unal.