BP hits $200 million claims mark

Damage claims payments topped $200 million on Friday to those affected by the Gulf of Mexico oil spill. 

During the past 10 weeks, more than 32,000 coastal businesses and individuals have received one or more payments, according to new figures released by BP on Friday.

Kenneth Feinberg, who is overseeing a $20 billion fund to pay damage claims, is expected to set up shop for the independent Gulf Coast Claims Fund within the next two to three weeks.

He is urging those affected to file claims during the initial phase when payments will equal six months of compensation for losses. 

Feinberg said he is “determined to come up with a system more generous and more beneficial than if you file a lawsuit.” 

Those affected will only waive their right to sue if they accept a final lump-sum payment. They can still sue if they accept initial emergency payments, he said. 

The claims fund will operate for three years and will allow businesses and individuals to be compensated for not only damage from the oil spill but for lost tourism money and health insurance.

So far, fishermen have received $32 million and shrimpers $18 million. About $77 million has been paid for loss of income to those who are out of work because of the massive spill, including deckhands and employees of seafood processing plants, according to BP. 

Approximately 114,000 claims have been submitted, but more than 61,000 lack enough information for BP to make a payment, or claimants have been unreachable after filing, BP said. 

BP began mailing letters to 48,000 claimants, about 5,000 a day, who haven’t provided the necessary documentation. Oldest claims will be dealt with first, according to Darryl Willis, who is with the BP claims team.

The 13,000 who haven’t been reached by telephone are being sent a letter asking them to contact BP so that the claims process can move forward.

In addition, BP has determined that 4,000 claims are duplicates, erroneous or have been withdrawn. Currently, 17,000 claims are in process being evaluated for payment.

“We strongly encourage those who have not yet sent in their supporting documents to do so,” Willis said. “BP is committed to paying all legitimate claims. As soon as we have the information, we will process them.”