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General Motors announced it will compensate families of those who died in accidents caused by a defective ignition switch that prevented airbag deployment with $1 million apiece.
It's a problem the automaker had been aware of for 10 years, yet waited until this past February to announce a recall, affecting 2.6 million vehicles.
Compensation claims will be processed starting August 1st. Any payment will come in the next 3-6 months.
According to GM attorney Kenneth Feinberg, each surviving spouse and dependent will receive $300,000. Those who suffered direct injuries will get a minimum amount of $20,000 that can go as high as $500,000 depending on the severity of the injuries.
GM also said that a driver's responsibility in a crash won't be taken into account when making the final decision in a compensation claim. There is no cap on the amount of money GM has agreed to spend on victims' payments, Feinberg said.
Victims or their families who've reached a mutual agreement with GM before finding out that their vehicle had a faulty ignition switch could receive extra compensation, too.
Source: New York Times
It's a problem the automaker had been aware of for 10 years, yet waited until this past February to announce a recall, affecting 2.6 million vehicles.
Compensation claims will be processed starting August 1st. Any payment will come in the next 3-6 months.
According to GM attorney Kenneth Feinberg, each surviving spouse and dependent will receive $300,000. Those who suffered direct injuries will get a minimum amount of $20,000 that can go as high as $500,000 depending on the severity of the injuries.
GM also said that a driver's responsibility in a crash won't be taken into account when making the final decision in a compensation claim. There is no cap on the amount of money GM has agreed to spend on victims' payments, Feinberg said.
Victims or their families who've reached a mutual agreement with GM before finding out that their vehicle had a faulty ignition switch could receive extra compensation, too.
Source: New York Times