GM Ready to Compensate All Victims of Ignition Switch Flaw

General Motors Co. intends to offer compensation to everyone who can prove they were victims of crashes involving the 2.6 million cars GM is recalling to replace defective ignition switches.

The voluntary plan worked out by disaster compensation expert Ken Feinberg will include those who were drunk or texting at the time of their crash, and those who have already received compensation.

The offer also extends to victims of incidents that occurred before GM's bankruptcy in 2009. It is being extended to drivers, passengers, pedestrians and occupants of other vehicles.

Feinberg says GM has set no cap on the payment pool because it has not reviewed claims. Analysts guess the amount could reach $3 billion.

Claims will be accepted between Aug. 1 and the end of December. The company intends to issue payment 90-180 days after Feinberg approves each claim.

Those who file must provide evidence primarily the failure of the airbag to deploy in a vehicle covered by the recall to show the ignition switch was a "substantial cause" of the crash. Applicants also can provide maintenance or dealership visit records that document a history of vehicle stalling.

Fienberg emphasizes that claimants aren't obliged to accept GM's offer and will receive payments only if they relinquish the right to sue GM. Claimants may instead opt to file a lawsuit against GM for damages.