GM Rejects 91% Ignition-Switch Claims

Posted: Aug 25 2015, 7:42am CDT | by , in News | Cars & Vehicles


GM Rejects 91% Ignition-Switch Claims
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  • GM rejects more than 90 percent of ignition-switch claims

Out of 4,343 claims only 399 are eligible for compensation.

GM Lawyers rejected more than 90 percent of the claims. These cases had been submitted for compensation of General Motors Co.’s faulty ignition switches. 

By this Friday the compensation fund had processed all the 4343 claims.  Lawyer Kenneth Feinberg is leading this fund. He determined that out of all these claims only 399 were eligible for compensation. 

From these 399 claims, 124 claims involved deaths. And 17 involved paralyzation, brain damage, pervasive burns or double amputation. The other 258 claims involved injuries requiring hospitalization within 48 hours of the accident.

Last year General Motors had recalled 2.6 million vehicles over a defective switch. That switch that could move out of the run position, shutting off the key safety features. Hence it threatened the lives of occupants. 

The recalled models included the 2003-2007 Chevrolet Cobalt, Chevrolet HHR, Saturn Sky, Saturn Iron, Pontiac Solstice and Pontiac G5. 

This defect by the company has now been linked to more than 100 deaths. The company in July had stated that it could end up paying the victims as much as $625 million in damages. 

But GM has sought the services of the renowned and high-profile attorney Kenneth Feinberg. He has handled compensation issues related to the 9/11 terrorist attacks. 

And he also handled BP oil spill in the Gulf of Mexico. Mr. Kenneth has only linked 124 deaths and 275 injuries to General Motor’s recalled ignition switches, reported WSJ.

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