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GM announces victim compensation plan

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GM has announced its compensation plan which will award $1 million to crash victims' families. (Source: MGN Online) GM has announced its compensation plan which will award $1 million to crash victims' families. (Source: MGN Online)

(CNN) –General Motors is taking steps to compensate the victims of accidents caused by the company’s faulty ignition switches.

GM is offering at least $1 million to the families of those who died and each surviving spouse and dependent is entitled to at least another $300,000 dollars.

People injured in crashes caused by the ignition switch will also be compensated. The amount depends on the severity of injures.

Attorney Kenneth Feinberg outlined the details at a press conference in Washington.

“Whatever it costs they will pay it, there is no ceiling on the aggregate dollars,” Feinberg said.

GM will also count back-seat deaths and deaths from side-impact crashes. Up until now, GM has not counted those in its official tally of 13 deaths caused by the faulty switch.

To receive compensation, claimants must prove the ignition switch was the “proximate cause of death,” and air bags must not have deployed for victims to be found eligible. Claims just be filed between Aug. 1 and Dec. 31.

GM employees first knew the ignition switches were malfunctioning back in 2004. But it didn’t recall the 2.6 million cars at issue until February of this year.

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