Kenneth Feinberg approved two more claims for death benefits from the GM victims compensation fund.
For the second time in less than a month, the number of deaths connected to faulty ignition switches in General Motors’ small cars has been revised upward. It now stands at 21.
Kenneth Feinberg, the independent administrator of the victims compensation fund established by the automaker, approved two more claims for death benefits moving the number from 19. Less than two weeks ago, he approved six claims to change the number from 13 to 19.
Additionally, he substantiated four claims for serious injuries, which under the definitions established includes amputations, burns, spinal cord or brain damage. Twelve of 467 claims for hospitalization with 48 hours of an accident were also deemed eligible for compensation.
The fund will pay at least $1 million for each death claim, along with $300,000 payments to surviving spouses and children for pain and suffering. In addition, it will calculate the economic value of the life lost.
While GM can question claims, it cannot refute Feinberg’s determinations regarding them. The deadline to file a claim is Dec. 31.
The automaker expects to pay between $400 million and $600 million to pay the claims, although under the terms of the fund, there is no cap on how much the maker will pay to settle claims.
(To see more about Feinberg’s earlier compensation claim approvals, Click Here.)
The claims are coming from victims who were either driving or passengers in GM small cars with faulty ignition switches. The problem the ignitions centers on a faulty switch that could inadvertently turn from the “On” position to “Off” or “Accessory” when the vehicle is jostled. In such an instance, the car would stall and its power steering and brakes, as well as its airbag system, would deactivate.
(Click Here for a look at the newest Honda CR-V.)
The Detroit-based maker recalled nearly 2.6 million vehicles with the problem. It also began an intensive effort on the part of the automaker to review the quality and safety of its vehicles and an avalanche of recalls. In fact, the company has recalled more than 29 million vehicles since the end of January as a result.
(Gas prices falling despite unrest in Middle East. For more, Click Here.)
No compensation offers have been made yet. The maker has already paid the largest fine in U.S. history, ordered by the National Highway Traffic Safety Administration for delaying the ignition switch recall.
Meanwhile, it is facing a series of investigations, including one by the U.S. Justice Department that could eventually lead to criminal charges. Feinberg is hoping to have all potential victims’ claims in hand by the end of this year, and intends to issue payments to those who qualify by early in 2015.