Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Deaths linked to defective GM switch expected to rise-fund official

Published 02/02/2015, 14:12
Updated 02/02/2015, 14:20
© Reuters. File photo of General Motors logo outside its headquarters at the Renaissance Center in Detroit
GM
-

DETROIT (Reuters) - The number of eligible claims for deaths and injuries linked to the defective General Motors Co (N:GM) ignition switch that led to the recall of 2.6 million older cars should rise, an official responsible for administering the victim compensation fund said on Monday.

The number of deaths deemed eligible for compensation under the program established by GM, the No. 1 U.S. automaker, stands at 51 and will "absolutely" rise from there as more of the claims are processed, fund deputy administrator Camille Biros said in an interview.

The number of eligible catastrophic injuries and less serious injuries are eight and 69, respectively, she said.

After a rush of claims filed ahead of the Jan. 31 deadline, the current number of claims received as of Sunday was 4,180, up from 3,068 on Jan. 23, Biros said. Since the end of last Thursday, about 700 claims had been filed, and January was the heaviest month for claims with more than 1,600 filed, she said.

The total number of claims could rise further as any claims not yet received with a time stamp from before the deadline would be accepted, she said.

Biros, who works with administrator Kenneth Feinberg, said the program likely will be processing claims through the end of spring.

GM has been criticized for waiting 11 years to begin the recall of millions of cars last year with ignition-switch problems that have been linked to fatalities. The switch can slip out of position, stalling the vehicle and disabling air bags.

GM hired Feinberg, who ran high-profile victim compensation funds for the Sept. 11 attacks and Deepwater Horizon oil spill, to handle an out-of-court compensation program to pay claims on behalf of people injured or killed because of the switch.

The Detroit company gave Feinberg free rein to determine who to compensate and will not challenge his decisions. It set aside $400 million (266 million pounds) to $600 million to pay for the program.

© Reuters. File photo of General Motors logo outside its headquarters at the Renaissance Center in Detroit

The original deadline had been Dec. 31 for filing claims, and GM had extended it to Jan. 31. Two U.S. senators had called on the automaker to further extend the deadline, but the company declined.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.