Administrator takes over BP spill compensation fund

BP says it has already paid out nearly $400 (£260) million to individuals and businesses in response to the Gulf of Mexico oil spill, as it handed over responsibility for further claims to an independent assessor.

Kenneth Feinberg, the US government’s pay czar, now takes control of the $20 billion compensation fund. Feinberg was appointed as the independent administrator as part of an agreement between the Obama Administration and BP to assist claimants in filing claims for costs and damages incurred as a result of the oil spill that occured in April and took some three months to stem.

Feinberg, who also oversaw compensation for victims of the 11 September 2001 attacks, announced yesterday that the Gulf Coast Claims Facility (GCCF) is fully functioning and will begin to process claims for emergency payment. He emphasised that his priority is to help payouts to people living in the gulf area affected by the spill.

Feinberg reportedly told the US Congress last week that his aim was to encourage people who feel they have been hurt financially by the spill to use the fund rather than going to court.

He said yesterday: ‘Now that the claim centres are open and ready for business, the goal will be to get the emergency six month payment cheques out the door, within 48 hours for individuals, after receipt of the claim form and sufficient supporting documentation and no more than seven days for businesses, after receipt of claim form and supporting documentation, and help people on the path to rebuilding their lives.'

BP said that since it had paid its first claim on May 3, it had handed out $399 million from a total of 154,000 claims filed.

The company's own claims team will continue to handle government claims.