A failure in the pressure control system of British Petroleum’s (BP) drilled seabed well resulted in the explosion and sinking of the BP oil rig in the Gulf of Mexico in April of 2010. This sea tragedy, which, spilled 4.9 million barrels of oil into the sea is considered the world’s biggest sea oil spill and the worst ecological disaster in the U.S.
The massive oil spill caused severe damage to marine life and left hundreds of individuals and businesses with health problems or huge amounts of losses in profit, respectively. In line with the giant oil firm’s promise to compensate those affected by the spill, BP created the Deepwater Horizon Claims Center where claims may be submitted for evaluation and authentication. These stricter means applied by BP in determining the authenticity of claims is to expose fraudulent claims, which unaffected companies have filed in order to receive from BP an amount that they do not really deserve. Since the spill more than three years ago, BP has already paid more than $25 billion in settlement claims, while hundreds of claims are still pending judgment.
One of the tests for authentication done by BP is the V- shaped revenue pattern, a Causation Requirement test that shows a down and upturn movement of gross revenues covering certain periods before, during and after the oil spill. Such test no longer requires the production of proofs of losses, quite an easier way of filing a claim compared to claims filed with car insurance providers after a motor vehicle accident (car accidents, by the way, is the primary reason why drivers are required, under the law, to carry liability car insurance).
On its website, Williams Kherkher states that even non-profit organizations, which are mainly dependent on the charitable contributions of individuals and businesses, are entitled to file claims too. This is due to the fact that the organizations’ benefactors may have been affected by the spill too, rendering them unable to continue with the charitable donations, creating, in turn, a direct impact on non-profit organizations’ operations.Read More