GM Victim Compensation Fund Nears 100 Recognized Claims

The uncapped compensation fund created by General Motors to pay the victims associated with its ignition switch recall had nearly 100 applicants at the start of this week.

General Motors put mediation titan Ken Feinberg in charge of paying out claims to the victims and initially estimated it would spend $400 million in doing so, though that figure can increase and it likely will. The first figure was released as a part of GM’s second quarter financial report, but the Detroit News reports that GM has since revised its estimate to roughly $600 million, saying there is no set limit on what it will spend. As of Monday, 93 applications were filed.

The fund hasn’t started making decisions about which claims will receive compensation, but a decision about compensation regarding “substantially complete” claims will take 90 days while more complicated cases will take 180 days. Through Monday, the fund had only been open for two days. Most of the filings it received in that time came from lawyers representing multiple claims.

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GM is finding the victim compensation, but surrendered the right to make any decisions about which claims will be paid, instead putting Feinberg in charge of determining compensation on a case-by-case basis. On June 30, he outlined the a compensation structure that includes three tiers: the first is for death, the second for catastrophic injuries including permanent brain damage and paralysis and this third is for less serious injuries.

Currently, there is a toll-free phone number and a website operating to provide information and guidance on filing a compensation claim.

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[Source: The Detroit News]