BP says that it has paid $303 million in claim payments to more than 40,000 individuals and businesses impacted by the oil spill in the Gulf of Mexico.
In just the past three weeks, BP has paid out $112 million and will continue to pay claims until the Gulf Coast Claims Facility (GCCF) takes over claims processing for businesses and individuals later this month.
"We're not perfect," said Darryl Willis, "but we continue to pay claimants across the Gulf Coast. Our commitment to individuals and businesses is that we will not let the transition to the GCCF interrupt the flow of payments. For those concerned about their claim, please continue to communicate with us. We are working hard to resolve claims."
Willis noted that BP continues to accelerate its payments. BP has paid out $37 million in claims in just the first five days of August. Claim payments broken down by month are as follows:
$39 million in May
$93 million in June
$134 million in July
Earlier this week BP announced a series of actions to expedite claim payments to businesses, including establishing an Immediate Action Claims Team which is dedicated to evaluating claims and expediting payments.
During the first two days of its existence, this team received 79 calls and approved payments for 57 businesses totaling $3.1 million. The remaining 22 claims are being adjusted.
"We have heard the issues facing small businesses and are being responsive," said Willis. "We do know that some businesses out there are not clearly addressed under coverage guidelines. We welcome Ken Feinberg's role in making tough decisions."
BP's claims process is guided by the Oil Spill Pollution Act of 1990 and the guidance developed by the Coast Guard for determining whether a claim is legitimate. BP's current process is guided by the following principles:
The oil spill must be the legal cause of the alleged loss.
The alleged loss cannot be remote or speculative.
The claim must be substantiated.
Reasonable efforts must be taken to mitigate the loss.
When BP pays a claim, the payment will be for net loss.
A given loss will be paid for once. There will be no double recovery.
BP will be efficient, practical, and fair.
BP has made 99,600 payments in 13 weeks.
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Let's put this in perspective.
As of August 5, 2010, BP has made 99,600 payments to claimants for a total of $303 million.
This equates to an average of only $3,042 per payment!
The following perspective on the BP Oil Spill Victim Compensation Fund may be of interest:
http://donovanlawgroup.wordpress.com/2010/07/29/is-the-bp-oil-spill-victim-compensation-fund-legitimate/
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