... Compensate victims, pay for clean-up costs, and protect taxpayers ... ... In the case of crude oil rail accidents ... ... Strengthen the liability and compensation regime for rail in Canada ...


As we try to navigate through the uncertainty of coronavirus disease (COVID-19) COVID-19, we want you to know that we are still in readiness mode to compensate victims in the event of a major crude-by-rail accident.

Following Public Health's recommendations, the Fund is taking the following measures.


Effective March 17 the Fund’s staff will be operating remotely until further notice.

  • Stakeholders and potential claimants are encouraged to continue engaging with us and send questions via email at: info@fraidg-ciafimd.gc.ca.


Staff will work remotely and will remain available via email during this time.


  1. We will be suspending our participation to all external events until further notice.
  2. All events organized by the Fund, including webinars are postponed.

Wishing you all good health.

The Need to Strengthen the Liability and Compensation Regime for Rail in Canada

From Transport Canada: The July 2013 derailment in Lac-Mégantic highlighted the need to strengthen the liability and compensation regime for rail in Canada. The railway involved – the Montreal, Maine and Atlantic Railway (MMA) – did not have enough insurance to cover damages, and went bankrupt. Stronger liability and compensation requirements came into force on June 18, 2016, under the Safe and Accountable Rail Act (the Act). The Act amends the Canada Transportation Act. It ensures that more resources are available, if a rail accident occurs, to:

  • compensate victims
  • pay for clean-up costs
  • protect taxpayers

New measures under the Act:

  • require federally regulated freight railways to hold a minimum insurance of $25 million to $1 billion, based on risk
  • define railway liability, including liability without proof of fault or negligence for crude oil accidents
  • create the Fund for Railway Accidents Involving Designated Goods, which:
    • is financed by crude oil shippers
    • pays compensation when a railway’s mandatory insurance level is not enough to cover the full cost of damages from a crude oil accident

Related Links

Stay up to date on FRAIDG news, events, and opportunities!
Subscribe to our mailing list