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CNN Live At Daybreak

Explaining Federal 9-11 Aid

Aired December 21, 2001 - 05:50   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: Well the Justice Department has laid out the guidelines for government compensation for families of September 11 victims, and CNN's Peter Viles has more.

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UNIDENTIFIED MALE: ... making $10,000 a year will get $356,000.

PETER VILES, CNN CORRESPONDENT (voice-over): A conversation no one ever wanted to have: How much is a human life worth?

KENNETH FEINBERG, 9/11 VICTIMS COMPENSATION FUND: Whatever we do is of small comfort, and I realize that. We do, however, aim to provide some appropriate compensation, some limited measure of comfort.

VILES: The government's offer works like this: It is open only to survivors of those killed or injured on September 11. Enter the program, you give up your right to sue the airlines. The government estimates your family's economic and emotional losses, then subtracts from that whatever life insurance or pension money you will receive, then promises a check within 120 days.

How big will the checks be depends in large part on life insurance and pensions. Two examples: The victim was 25 and single, making $10,000 a year, the government will pay roughly $300,000, less any insurance or pension; 41, married, with two children, earning $80,000, $1.5 million, less any insurance and pension.

ABBIE HAWKINS, OHRENSTEIN & BROWN: What the government is giving here is a guaranteed amount of money. It may not be as much money as somebody would get in court, but it avoids the chance of losing in court.

VILES: Reaction to the rules was mixed. New York state attorney general Elliot Spitzer criticized them as too restrictive. Patrick Cartier lost his brother on September 11.

PATRICK CARTER, BROTHER DIED SEPT 11: My misgivings is the timing of it. Why are they doing it now when there are people still suffering? Why are they doing it now that there is still an open grave in ground zero and at fresh kill?

VILES: But the American Bar Association praised Feinberg for his fairness.

ROB CLIFFORD, AMERICAN BAR ASSOCIATION: When all is said and done, this fund will benefit the vast majority of the victims of September 11.

VILES (on camera): These families do have another option, they can sue the airlines. And that is exactly what a widow in New Hampshire did on Thursday. She sued United claiming it had failed to protect its passengers. UAL, the parent of United, had no comment.

Peter Viles, CNN Financial News, New York.

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