Read more about GM's ignition switch crash compensation at AutoGuide.com.General Motors will pay out millions in compensation to victims and their families of crashes related to faulty ignition switches.
Kenneth Feinberg, the independent administrator GM tasked with handling compensation claims, announced the company’s plan and spoke to the families of crash victims today. The Detroit automaker is setting aside an uncapped compensation fund to pay claims to affected families.
To date, General Motors links 13 deaths and 54 crashes to defective ignition switches that are behind the recall of 2.6 million vehicles. The switches might slip from the “on” position into accessory or off, disabling the airbags. GM will pay out $1 million to the families of crash victims that died in an affected General Motors vehicle. Additionally, the company will pay $300,000 per surviving spouse, $300,000 per surviving dependent and an additional sum for calculated economic loss.
GM is also building three tiers into its compensation structure. The first is for death, the second for catastrophic injuries including permanent brain damage and paralysis and this third is for less serious injuries.
GM has received roughly 3,500 claims, many of which Feinberg said are without substantial evidence. As an example, Feinberg said a 25-year-old victim with two children and an annual income of $75,000 who died in a crash would merit a claim of $5.1 million.