Canada to Boost Oil/Rail Insurance Requirement

Canada will boost the minimum insurance that railways will be required to carry when they haul crude oil and will impose levies on oil shipments to build up a supplementary fund to cover major disasters, under a bill introduced on Friday.

 

Transport Minister Lisa Raitt, announcing the legislation, said railroads would have to carry up to C$1 billion ($800 million) in insurance for carrying substantial quantities of dangerous goods.

 

Shippers of crude oil would also have to pay a levy per tonne of crude oil shipped. This would go into a fund to pay for damages exceeding a railway's minimum insurance level for a crude-by-rail accident.

 

The legislation would also give Raitt and government inspectors stronger powers to oversee the railroads.