Car-maker will pay 'whatever it costs' to settle claims, says Kenneth Feinberg, who dealt with payments to 9/11 families

The families of those killed in crashes involving the General Motors cars with defective ignition switches could receive at least $1m, a compensation fund administrator announced Monday.

The administrator, attorney Kenneth R Feinberg, is the ultimate arbiter of the fund, deciding whether claims are eligible and what the ultimate payout will be. There is no cap on the total amount of money that could be distributed through the fund – GM will pay whatever Feinberg determines to be appropriate.

"GM has basically said, whatever it costs to pay all eligible claims under the protocol, they will pay it," Feinberg said in a press conference.

Payouts could range from $20,000 for those who spent one night in the hospital to tens of millions of dollars for those who survived crashes but were left with severe and chronic conditions such as brain damage or paralysis.

Also on Monday, GM announced the recall of 7.6m additional vehicles, some from model years as far back as 1997.

Calculations for those who've died and the most severely injured will be, in part, based on lifetime earnings using figures from agencies such as the Bureau of Labor Statistics, or from personal earnings histories. "Non-economic loss" may also be considered in some cases. Those victims who decide to accept compensation from the fund would relinquish the right to sue GM, though they can apply for the compensation without giving up that right.

The company has recalled more than 20m cars this year, including 2.6m Chevrolet Cobalts and other small cars with ignition switch problems. In mid-June, 3.36m more cars, such as the Buick Lacrosse, were recalled for ignition problems that could lead to loss of power steering and braking.

Currently, GM has publicly linked 13 deaths to faulty ignition switches that caused vehicles to lose power. GM knew about the issue as early as 2001, in preproduction models of the Saturn Ion, but didn't issue a recall until February of this year.

On Monday, GM CEO Mary Barra framed the "expeditious" handling of victims' claims as the company's ethical duty.

"We are pleased that Mr Feinberg has completed the next step with our ignition switch compensation program to help victims and their families," Barra said in a statement.

"We are taking responsibility for what has happened by treating them with compassion, decency and fairness. To that end, we are looking forward to Mr. Feinberg handling claims in a fair and expeditious manner."

Victims can apply between 1 August and 31 December, 2014.

People involved in crashes before GM declared bankruptcy in 2009 will be eligible to receive compensation, though the company could potentially have used legal protections it got as a result of that bankruptcy to avoid liability in those cases. Similarly, those who settled with the company before the defective ignition switch coverup was revealed will also be able to receive money from the fund.

Feinberg, who was hired by GM to run the compensation fund, has administered similar programs for a number of corporations, including the fund set up after the BP oil spill. He also handled compensation to families of 9/11 victims.