Canada Senate urges minimum insurance levels for railways
REUTERS 1:54 PM ET 8/22/2013
By David Ljunggren
OTTAWA, Aug 22 (Reuters) - Canada should force railways to take out enough insurance to ensure they can cover damage caused by major incidents, the Canadian Senate said on Thursday in a report issued after last month's train disaster in Quebec, which killed 47 people.
The recommendation was one of 13 in a report by the Senate's energy, environment and natural resources committee on transporting oil and gas by pipeline, rail and tanker. The Senate is Canada's unelected upper house of Parliament.
A train operated by Montreal, Maine and Atlantic Railway (MMA) derailed and blew up in the Quebec town of Lac-Megantic on July 6, killing 47 and destroying the town's downtown.
Canada moved to shut down MMA last week, saying it did not have enough insurance to pay for the cleanup costs. But it has since said it will let the railway operate through early October.