GM Creating Compensation Fund for Car Accidents in Recalled Vehicles

Not dissimilar to the asbestos trust created for victims of asbestos related diseases, GM is now creating a fund to pay out claims stemming from auto accidents in recalled vehicles. GM has indicated, rightly so, that it will not matter if the accident occurred before or after the safety recall so long as it can be proven that a defect caused or contributed to the injury sustained.

GM has been hit very hard with safety recalls in the past year with over 20 million cars affected by some form of recall. This compensation fund is intended to directly address the 2.6 million defective small cars with faulty air bag switches. GM has come under very heavy criticism regarding these defects which they allegedly knew about for over 11 years without taking proper action. GM is offering settlements based on the severity of injury if the air bag’s failure to deploy caused or contributed to the victims injury. Wrongful death claims will be compensated by at least 1 million dollars.

Creation of a fund like this does not limit a persons civil right to bring a product liability claims but it creates a means for settlement while limiting the extensive costs of a product liability claim. If you or someone you know was injured in an automobile accident with a GM vehicle and the airbag either failed to delpoy or improperly deployed, contact our office right away for a free consultation.