GM Set To Pay Compensation For Faulty Ignition Switch

(RTTNews) - General Motors Co. (GM) is ready to pay as much as it takes to compensate victims in accidents caused by faulty ignition switches installed in about 2.6 million Chevrolet Cobalts, Saturn Ions and other cars, said Ken Feinberg, an expert hired by the auto giant to oversee the compensation fund.

Kenneth Feinberg said GM has not placed any limit on the total amount that can be paid to the victims or their relatives, if they can prove that GM's ignition switches were at fault for non-deployment of airbags. "If an air bag deployed, you're out," said Feinberg.

GM would pay compensation ranging from $20,000 to several million dollars to anyone i.e, driver, passenger, pedestrian or occupant of another vehicle injured in a crash due to faulty ignition switches. Feinberg will take claims from August 1 through December 31.

However, those who agree participate in the compensation plan will have to waive their right to sue the company. Those who choose not to participate could still sue the company. GM has agreed to clear all eligible claims, even of those accidents which occurred before GM's 2009 bankruptcy filing.

GM, in a statement attributed to GM CEO Mary Barra, said "We are pleased that Mr. Feinberg has completed the next step with our ignition switch compensation program to help victims and their families. We are taking responsibility for what has happened by treating them with compassion, decency and fairness. To that end, we are looking forward to Mr. Feinberg handling claims in a fair and expeditious manner."

GM, in February, recalled about 2.6 million Chevrolet Cobalts, Saturn Ions and other models for faulty ignition switches that are said to have caused at least 13 deaths and 42 crashes. GM has also paid over $35 million in fine to regulators for a delay in recalling cars.

GM is currently trading at $36.85, up $0.23 or 0.63%, on the NYSE.