The new GM compensation plan will be overseen by Kenneth Feinberg and will provide financial payments to the drivers and passengers in GM vehicles — or the occupants of other cars — who can prove they were hurt in an accident linked to the defective ignition switches, the Wall Street Journal notes.
Under the GM compensation plan:
- Claimants must show that the GM vehicle’s airbag did NOT deploy.
- Previous out-of-court death settlements can be refiled with the possibility that additional compensation will be paid.
- GM is aware of 3,500 potential as-yet-unvetted death and injury claims linked to the defect.
- There is no cap on the amount of money GM will pay to compensate victims.
- GM will compensate victims involved in accidents prior to its June 2009 bankruptcy.
- Compensation will be paid for accidents involving the 10 GM models that featured the faulty ignition switches.
In Monday midday trading, GM shares rose modestly.
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