A third party facility authorized by General Motors Co. (GM) has approved 29 of 184 death claims as a result of the faulty ignition switches in its vehicles.
The company has tapped Kenneth Feinberg to take charge of the GM Ignition Compensation Fund to ensure fairness as no company official is involved in the claims process, Reuters noted.
Feinberg has a good track record for handling high-profile compensation programs. Reuters added that he has overseen the claims process for the victims of the 9/11 attacks and the Deepwater Horizon oil spill.
GM has reportedly given Feinberg the blanket authority to set and determine eligibility criteria for all claimants, including the power to approve or reject claims.
The program has reportedly received a total of 1,517 claims for deaths and injuries since it first started accepting claims on August 1. But thus far, only 56 of these have been deemed eligible for compensation - 29 for deaths and 27 for injuries, according to Feinberg's report, as cited by Reuters.
The claims process
In February, GM recalled about 2.6 million of its small cars due to faulty ignition switches.
The switches can slip out of the "on" position, stalling the vehicle, knocking out the power steering, and disabling the air bags, noted WZZM 13.
WZZM 13 also detailed that GM has installed the faulty ignition switches in Chevrolet Cobalts, Saturn Ions, Pontiac G5s, Chevrolet HHRs, Pontiac Solstices and Saturn Skys, which were released from 2003 to 2007.
To address the problem, the company created a website, GM Ignition Update, to help its customers understand its ignition recall order and what steps or process they must undertake if their vehicle is affected.
GM began accepting claims on August 1 for deaths and injuries resulting to the car defect.
The American car company projects that the total cost at the end of the claims process will be between $400 million to $600 million, WZZM 13 noted.
The compensation program will reportedly continue to accept claims application on behalf of persons injured or killed by accidents caused by the ignition switch problem until December 31.
Reuters pointed out that under the compensation program guidelines, claimants for death should expect to receive at least $1 million.
Once a claim passed the eligibility requirements, Feinberg makes cash offers to claimants or the surviving heirs of the deceased. He reported that they have already made 31 offers thus far and 20 families accepted the cash award.