Kenneth Feinberg, the compensation expert hired by General Motors Company (NYSE:GM) revealed the plan pertaining to the payment for the victims of those injured and families of the people who lost their lives linked to the delayed recall of 2.6 million vehicles with defective ignition switches.
Fair & expeditious compensation for victims
In a statement, Mary Barra, CEO of General Motors Company said, “We are pleased that Mr. Feinberg has completed the next step with our ignition switch compensation program to help victims and their families.”
“We are taking responsibility for what has happened by treating them with compassion, decency and fairness. To that end, we are looking forward to Mr. Feinberg handling claims in a fair and expeditious manner,” added Barra.
Feinberg promised speedy payments for those who are critically injured and over $1 million compensation to the families of those who were killed in the accidents.
According to Feinberg, General Motors Company (NYSE:GM) did not set a limit to the full amount of money it will spend to compensate victims. He said, “General Motors basically has said whatever it costs to pay all eligible claims, they will pay it.”
Feinberg said the compensation plan also include accidents that that have not yet occurred (until December 31, 2014). He said even those who already agreed to settle their complaints against General Motors Company (NYSE:GM) related to the defective ignition switches are entitled to receive payments. According to him, the money they already received will be deducted from the total amount to be received.
General Motors has no right to veto compensation
The filing for compensation is set starting August 1until December 31, 2014. Feinberg said people will be able to receive payments within 90 to 180 days once a claim is ready for evaluation. He and his associates intend to release the final payment in the middle of 2015.
General Motors Company (NYSE:GM) admitted that the defective ignition switches resulted to at least 13 deaths and more than 50 crashes. Federal safety investigators suggested that the number could be more.
According to Feinberg, General Motors Company (NYSE:GM) already received 3,500 inquiries regarding claims for injuries or deaths.
Feinberg said he is the only one who would make decision regarding the amount of payments. General Motors Company’s (NYSE:GM) agreement with Feinberg included a provision that it does not have the authority to veto the compensation for victims deemed appropriate by the compensation expert.