Under fire from safety regulators and congress, General Motors will set up a uncapped fund to compensate families and victims of accidents related to a faulty ignition switch which has resulted in millions of recalled cars. Victim Compensation Fund
According to reports, the carmaker will pay families of victims killed and those injured in accidents related to the defective ignition between $400 million to $600 million. Claims can be filed over a five-month period beginning in Aug. GM to Pay Victims
According to Ken Feinberg, the attorney in charge of the fund, a wide range of victims – from those experiencing catastrophic injuries to minor damages – can file compensation claims. Victims Fund Eligibility
GM has recalled more than 17.5 million vehicles in 2014 over the ignition defect, which the carmaker says has caused at 13 deaths and 54 accidents, – although the actual figure could be higher. GM chief executive, Mary Barra has acknowledged that the company was remiss in catching flawed ignition switches. MSN Article
Overall, GM has recalled a record-setting 28.77 million vehicles this year in 60 campaigns — more than the entire auto industry’s 22 million vehicles called back during 2013.
Facing mounting criticism, GM has been hit with a number of lawsuits over the ignition-switch defects, plus fines from the Department of Justice, an investigation by the SEC, and reviews by various state attorneys general. Compensation for victims families