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A special compensation fund for victims of GM's faulty ignition switch has issued its first report, and it makes clear that GM will pay claims for more than the 13 deaths the automaker says were linked to the defect. 

GM established the voluntary compensation fund as part of its ongoing mea culpa for delaying an ignition switch recall for a decade.

The program is only for Cobalts, HHRs, Saturn Ions and a few other GM models, all no longer in production, and only for those killed or injured when their airbags did not deploy because the ignition switch had turned off.

The program's manager, Kenneth Feinberg, initially feared the program might be swamped with claims.

"We haven't been deluged," he says. "We've received a substantial number, 445 claims, in about five weeks. I wouldn't call that a deluge."

Not compared to the million-plus claims in the BP oil spill program, which Feinberg also managed. Still, the number will likely rise, since claims will be accepted until the end of the year.

Feinberg has already deemed 31 that are eligible for payment — including 19 involving a death. He says it's not surprising that's more than GM has admitted to.

"GM was using a different standard. GM was saying, 'Our engineers have definitely concluded that it was ignition switch failure that caused the accident,' " Feinberg says.

He says claimants must show it was substantially likely that the switch failure caused the accident and that GM may disagree on some cases, but the final call is his.

Business and Economic News

Tracy Samilton

Author

A special compensation fund for victims of GM's faulty ignition switch has issued its first report.

GM ignition-switch defect now linked to 19 deaths

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