BP Claimants Reportedly Waiting for Compensation

Mobile, ALIt's been a few weeks since the claims process was announced in the wake of the BP oil spill. In that time, millions of dollars have been spent compensating victims of the Gulf of Mexico oil spill. But according to reports, some claimants have been told they have to wait for compensation.

According to an article in the Press-Register on 7/12/10, BP is paying out most claims tied directly to the spill but very few that are indirectly linked to the spill. These include claims concerning health problems, decreases in property value, real estate sales claims, claims about harm to pets and loss of use claims.

Claims that have received the majority of the compensation include lost wages or revenue related to the seafood industry, with approximately $111 million going to claimants in this area. Approximately $1,600 has been paid out to people who have made claims linked to loss of property value, and $244,000 has gone to those who made claims of lost income on real estate value.

BP has reportedly said it will pay for lost property value but will wait until the oil spill is stopped before figuring out how much damage has been done. The company will only pay for real estate sales that were ready for execution and then canceled because of the oil spill.

Approximately $2,500 has been paid for health problems such as headaches, nausea and respiratory problems. No claims have been paid so far for damaged plants, oil-covered pets or damaged pools.

An issue with the BP claims process involves determining future losses. According to money.cnn.com, Ken Feinberg, administrator of the Gulf Coast Escrow Fund, wants victims to agree to accept an estimate of future damages, to prevent claimants from repeatedly filing claims. This could be difficult, however, because the oil is still spilling, making it virtually impossible to know how long claimants will be affected by the spill.

The article notes that claimants who are not happy with the compensation offered by the Gulf Coast Escrow Fund can file a claim with the Oil Spill Liability Trust Fund. That fund only pays for past losses, not future losses, so claimants would have to file repeated claims. The claimant can also file a lawsuit if he is not happy with either the Escrow Fund or the Trust Fund compensation.

Some alleged victims have gone ahead and filed lawsuits related to the oil spill. A 7/12/10 report in the Miami Herald notes that 200 lawsuits have been filed against BP PLC and Transocean Ltd.