GM compensation for 19 deaths

General Motors (GM) on Monday announced that it will pay compensation for 19 deaths, more than the 13 deaths the automaker had previously admitted were caused by the faulty ignitions, according to a lawyer overseeing the process.

Outside attorney and compensation expert Ken Feinberg is still examining claims of death and injury. The problem is believed to result in a shutdown of the engine, also switching off most of the electrical components on cars. In the fatalities, the airbag is believed to have failed to deploy.

Feinberg said he had received 125 death claims and 320 injury claims in total. But his firm has either rejected or is still reviewing 106 and 308 claims, respectively.

In the plan announced by Feinberg on June 30, for each eligible death claim, GM will pay a minimum compensation of $1 million for the victim, $300,000 for the surviving spouse and another $300,000 for each surviving dependent. GM has estimated the cost of compensating victims at $400 million, but says it could rise to $600 million. Compensation claims will be taken through December 31.

Although the carmaker has admitted knowing about the ignition switch problem for more than a decade, it didn't begin recalling the switches in 2.6 million small cars until earlier this year. Members of Congress and safety advocates have criticized the company for acknowledging only 13 deaths that were caused by the part, with some critics citing more than 100 cases.

GM spokesman Dave Roman, however, said the automaker will not increase the number of fatalities it officially attributes to the switch based on the number of death claims Feinberg finds eligible for compensation.

sri/cjc (AP, AFP, Reuters)