February 20, 2015 / 5:53 PM / in 3 years

Canada introduces bill to boost oil/rail insurance requirement

OTTAWA, Feb 20 (Reuters) - 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.

($1=$1.25 Canadian)

Reporting by Randall Palmer, Mike De Souza and David Ljunggren; Editing by Leslie Adler

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