Monday, July 12, 2010

BP (NYSE:BP) Accident Compensation Cut On 40,000 Claims

BP (NYSE:BP) is reducing accident compensation on over 40,000 legal claims submitted to them, spawned from the disaster that's said to be the worst oil spill in U.S. history. As if BP isn't unpopular enough, this isn't going to help give people a restored confidence in the company.

The reasoning for this cut is because of lack of paperwork that was supposed to be submitted with the claims. BP's solution, significantly reduce the payments to those individuals impacted by the the disaster who failed to meet these requirements. Kenneth Feinberg, federal BP claims administrator verified this, saying that there would be less paid out to "individuals whose claims filed were incomplete."

Louisiana's Department of Children and Family Services secretary, Kristy Nicholas, said a BP representative told her that of the 99,508 claims filed, over 40,000 people be getting less on their checks. Because many people didn't have the acceptable records according to BP. "It is crucial that BP not continue to penalize these individuals and instead accept alternative forms of documentation, such as records held by the Louisiana Department of Wildlife and Fisheries, said Nicholas."

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