GM extends compensation program application deadline to January 31, 2015

Article by Christian A., on January 25, 2015

General Motors now has received 2,710 claims for compensation for deaths and injuries caused by faulty ignition switches in its cars.  According to the report from lawyer Kenneth Feinberg, who was administering the compensation program for GM, they received 141 new claims for compensation last week.

The compensation program is currently receiving claims on behalf of individuals injured or killed in accidents related to the faulty ignition switches. These defective parts could slip out of position, which could stall the vehicle and render its airbags not deployable.

Sorted out, the total claims refer to 303 for deaths, 202 for catastrophic injuries and 2,205 for less-serious injuries that required hospitalization. According to Feiberg’s report, the program has determined that 12 more claims were eligible for compensation to 112 from 100.

So far, the compensation program has determined to be eligible for compensation claims for 45 deaths, seven severe injuries and 60 other injuries. On the other hand, 320 claims were deemed ineligible, while 738 were under review.

Likewise, 757 claims lacked sufficient paperwork or evidence while 783 had no documentation at all. GM has allocated an initial $400 million to cover its costs of compensation for claims on behalf of people injured or killed due to the faulty ignition switches in its vehicles.

GM has left it to Feinberg to determine how many people would be eligible for compensation under the program. GM has allocated around $400 million to finance the program, although executives at the carmaker have said that the fund has not been capped. GM has remarked that the program could reach $600 million. Death claims deemed to be eligible would receive at least $1 million.

It can be remembered that late last year, GM has extended the deadline for submission of application for the program, which was designed to compensate victims of defective ignition switches. As recommended by Feinberg, GM has decided to move the deadline from Dec. 31, 2014, to January 31, 2015.

In a statement, Feinberg disclosed GM extended the deadline "out of an abundance of caution," noted that efforts to reach all possible GM vehicle owners, former owners and others who were affected by a faulty ignition switch have been both “comprehensive and effective." He added that there will always be a few people who wouldn’t be able to receive the notice and are not aware of the compensation program.

Back then GM said in a statement that its goal with the compensation program has been to reach every eligible person affected by the defective faulty ignition.

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