Lauren Scruggs scored BIG in her mystery settlement over her airplane propeller accident ... at least judging by the look on her face hours after the deal was announced.

Scruggs was photographed out near her home in Texas yesterday ... sporting a big ol' smile on her face ... the kind of smile that says I just got a MASSIVE check.

As we previously reported, Scruggs finally reached a settlement with the airplane insurance company for the gruesome injuries she sustained when she was struck by a propeller back on December 3.

The terms of the settlement have not been revealed ... but there are reports that the numbers got into the millions.

Lauren Scruggs -- the model who suffered gruesome injuries in an airplane propeller accident last year -- is halting all legal action after agreeing to a settlement with the pilot's insurance company.

Scruggs had gone to battle with Aggressive Insurance Services because she felt entitled to more than a $200,000 settlement ... the most the company claimed it could give to a "passenger."

Scruggs had argued that she wasn't technically a passenger when the accident occurred because she had already departed the aircraft when she was struck by the plane's propeller ... losing a hand and an eye.

Now, both Scruggs and A.I.S. have jointly announced they have reached a settlement ... but the terms are confidential. We're guessing it's a helluva lot more than $200k.


12:00 PM PT: A.I.S. Division Head Joel Crisalli tells TMZ, "Details on a settlement of this type are privileged and are between the company and the family, any settlement discussions are privileged."

Crisalli adds, "As people, I have been as sensitive to Ms. Scruggs and her recovery as anybody else is in the country. She's a lovely young lady and this is a horrible accident. We don't want to do anything at all that in any way is going to make her feel bad."

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.

** WARNING -- THE RECORDING IS EXTREMELY DISTURBING **


TMZ has obtained the 911 tape made moments after model Lauren Scruggs walked into a moving airplane propeller in Dallas  last month ... in which you can hear, in graphic detail, the intense effort to save her life.

During the call -- made on December 3rd -- a woman tells the operator, "A girl walked into an airplane propeller ... I need an ambulance immediately."

Lauren can be heard wailing in extreme agony as the people around her scramble to her aid.

The caller can be heard asking someone in the background, "Is that her hand?"

The call continues, "I have a female that walked into an airplane prop ... I think it cut her hand off."

The caller notes, "She is on the ground, she is not moving."

The caller says Lauren is conscious and breathing and lying face down on the ground ... bleeding profusely from her head and her left arm.

Emergency crews eventually arrived to the scene and transported Lauren to a nearby hospital. Doctors were unable to save her left hand. She also lost her left eye.

Lauren was finally spotted out in public yesterday -- for the first time since the incident -- and appeared to be in good spirits.

Her recovery is said to be going well.

For the first time since accidentally walking into a spinning plane propeller last month, model Lauren Scruggs was pictured in seemingly good spirits as she left a Dallas hospital with her parents on Tuesday.

The 23-year-old lost her left eye and left hand in the horrific Dec. 3rd accident and has been undergoing extensive rehab.

According to a federal report just released, the pilot of the plane claims he attempted to warn Scruggs about the propeller and guide her to safety. When he thought she was out of harm's way he returned to his seat, only to then hear someone scream, "Stop, Stop."

Despite everything she's gone through, Scruggs is said to be making remarkable progress.