Learn about the Lac-Mégantic rail disaster, and the
steps taken to better protect Canadians from bearing
the cost of accidents in the transport of crude oil by rail. FUND FOR RAILWAY ACCIDENTS INVOLVING DESIGNATED GOODS PRESENTS 5 YEARS OF PREPAREDNESS New Video Series Click here to learn more – Represents 5.6 million tonnes of crude oil transported by rail
in Canada Click here 2021-2022 HIGHLIGHTS Fund’s growth preparedness in the event of a major crude-by-rail accident
  • Secured services to assist claimants
  • Prepared a plan for simple and timely communication with the public
  • Developed and launched a
    video series to raise awareness

    •  Monitoring of crude-by-rail accidents
  • No new accident
    reported
  • 6 past accidents monitored

  • Collected over $10M in levies this year
    •

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    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

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