General Motors announced Monday that it would pay upwards of several millions dollars each to the families of those who died or were severely injured in accidents caused by the company's vehicles that had defective ignition switches.

GM's compensation specialist and attorney Kenneth Feinberg said the size of the compensations to the families of people who died or suffered severe injuries including paralysis, burns or amputations would vary based on the person's age, earning potential, medical expenses and family obligations, The Washington Post reported.

For instance, a 10-year-old paraplegic who sustained his injuries from a crash caused by the defect could receive $7.8 million. However, for less severe injuries, the settlements will be based on the time a victim spent in the hospital with payments ranging from $20,000 to $500,000, Feinberg said Monday at a news conference at the National Press Club

"Individuals who have suffered terribly in this whole experience deserve prompt treatment of their claim, and we will do that," Feinberg said.

The GM compensation fund will begin accepting claims Aug. 1, and families who accept Feinberg's predetermined payments could receive their settlement within the first 90 days. Victims and their families could also choose a more precise examination of their individual circumstances based on economic analysis and would receive their compensation in six months, Feinberg said.

According to The Post, GM does not have final say as to how much a family would get compensated, only Feinberg does. Feinberg said the motor company hasn't placed a cap on awards and added that its 2009 bankruptcy, which provides a legal protection against court claims from previous accidents, would not affect the settlements.

"One of the critical items in determining the success of a program like this is the speed of payments, as opposed to the American legal system," Feinberg said. "This is a non-adversarial process. ... Money going out the door is the No. 1 test for the success of the program."