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Model Lauren Scruggs

REJECTS $200k Settlement

in Airplane Propeller Accident

3/27/2012 6:38 AM PDT BY TMZ STAFF

Lauren Scruggs -- the model who lost a hand and an eyeball
Lauren Scruggs -- the model who lost a hand and an eyeball when she was struck by an airplane propeller last year -- claims she shot down a $200k settlement offer from the plane's insurance company ... and now she's suing for much, much more.

Scruggs filed legal docs in Dallas, Texas ... claiming the insurance company "verbally offered" to pay her $200k for the Dec. 3, 2011 accident ... and they explained it's the MOST the insurance company can pay out to a "passenger."

But Scruggs is calling BS ... claiming she shouldn't be considered a "passenger" because "she was not in the aircraft or getting in or out of it at the time of the incident."

The 23-year-old model argues she had "completed her exit from the aircraft prior to the time of the incident and was physically located on the tarmac when the incident happened. Until struck by the propeller, she was not in physical contact with the aircraft after her exit."

Scruggs is asking for unspecified damages ... but we're guessing she wants WAY more than $200k.

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