General Motors Company (NYSE:GM) To Begin Taking Claim Applications From Faulty Ignition Switch Victims On August 1

Posted In Automotive - By Rachelle Stevens On Thursday, July 31st, 2014 With 0 Comments

Dallas, Texas 07/31/2014 (ustradevoice) – General Motors Company (NYSE:GM) on July 30, 2014 said that from Friday onwards, it will begin taking the applications from victims of mishaps associated with defective engine switches. The company announced to commit first payouts from approximately $400 million fund by 2014 November.

The compensation to be paid per Claim

The largest auto-maker of the country, General Motors Company (NYSE:GM) announced that as the compensation to claims covering injuries as well as deaths in Pontiac, Saturn Ion and Chevrolet Cobalt crashes due to non-deployment of air bags; it was ready to pay out from $20000 to several million dollars. In case of fatalities, the company announced a compensation of $1 million.

GM Under Harsh Criticism

In the recent past, GM has been harshly put under the lens for excluding larger and other mid-size vehicles which are also facing recalls due to faulty ignition switches; which lead to turning off air bags and causing impediment to power steering and brakes.

Earlier this month, GM recalled 8.5 million Chevrolet Impala along with other larger vehicles; which it said also led to deaths because of non-active air bags in crashes. However, GM said that in these cases, the circumstances were very different and no evidence proves that these defects created crashes.

Attorney’s Statement

Attorney Bob Hilliard plans for submission of claims on behalf of some clients. However, he insists that the company has not gone too far with its compensation plan. He said that the “whole thing” was a superficial and shallow response from the company to save money.

In the first week, General Motors Company (NYSE:GM) might expect around a dozen claims. According to the compensation adviser of the company, Kenneth Feinberg, the program for compensation by GM had no financial limitation. He is the only one authorized for claim approvals as well as payouts.

GM said that in 2.6 million compact cars included in this plan, there was a possibility of jarring ignition key leading to movement in switches to accessory from running.

About the Author

- Rachelle Stevens covers politics for US Trade Voice, including the 2013 mayoral race. During the 2012 presidential election, Rachelle traveled the country to tell the stories of voters in early primary battlegrounds and swing states. Rachelle's work has been honored by the New York Press Club, Capitolbeat, and the Associated Press Broadcasters Associations of New York, Connecticut and West Virginia.

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