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GM Ignition Switch Compensation Program Receives More Than 300 Claims, Including 107 Death-Related

August 27, 2014
3 min to read


The General Motors Co. ignition switch compensation program has received 309 claims through Monday, including 107 related to fatal accidents, reported Michigan Live.


Camille S. Biros, of Feinberg Rozen LLP, which is overseeing the program for the Detroit-based automaker, said payments to eligible victims and their families are expected to be finalized by the end of September. She said the number of claims filed has no correlation to the amount of individuals expected to be paid through the program, which could cost GM hundreds of millions of dollars.

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The voluntary compensation program was announced by GM and renowned compensation attorney Kenneth Feinberg in late-June. There is no financial cap on the program and everyone that meets stringent guidelines set by Feinberg are eligible for the program.


Feinberg Rozen started accepting claims Aug. 1. It will continue accepting claims through Dec. 31.


GM has linked the faulty ignition switches to at least 13 deaths and 54 crashes, but others, including victims' family members and lawyers, say the death toll is closer to 100. GM has said its numbers could increase based on Feinberg's findings because it only included those involved in front-end collisions.


Feinberg is best known for overseeing millions of dollars in compensation in high-profile tragedies, including the Sept. 11 terrorist attacks, the Virginia Tech school shooting, the BP Deepwater Horizon oil spill in the Gulf of Mexico and the Boston Marathon bombing.


The GM program, according to Feinberg, will follow the same methodology as some of his past compensation plans.

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For families of victims and those who have suffered serious physical injuries as a result of faulty ignition switches, Feinberg will use the same formula as he did for the Sept. 11, 2001, terrorist attacks. It includes payments based on a victim's age, earnings potential and severity of injuries. He referred to the process as "Track A." In addition, GM will pay at least $1 million for all deaths and $300,000 to any surviving spouse and dependents.


Feinberg retains complete and sole discretion over all compensation awards to eligible victims, including eligibility to participate in the program and the amounts awarded. By agreement, GM cannot reject the administrator's final determinations as to eligibility and amount of compensation.


Vehicles with the faulty ignition switches can cause the key to move out of the "run" position to the "accessory" or "off" positions, leading to a loss of power. If the key turns to one of those positions, the front air bags may not work if there's a crash.


The 2.6 million vehicles, including 2.2 million in the U.S., affected by the ignition switch recall include 2003-2007 Saturn Ions, 2007-2010 Saturn Skys, 2005-2011 Chevrolet HHRs, 2006-2010 Pontiac Solstices, and 2005-10 Chevrolet Cobalt and Pontiac G5 models.



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