About the Rail Fund

The Rail Fund compensates anyone affected by major rail accidents involving crude oil.

While generally safe, the transportation of dangerous goods like crude oil can pose risks to communities, the environment, and the economy. The Rail Fund was created in response to the Lac-Mégantic rail disaster in 2013.

Canadians can access compensation from the Rail Fund for damages that exceed the liability limit of the railway company involved in an accident. The accident has to involve a federally regulated railway.

In the event of a major rail accident involving crude oil, the Rail Fund is available to pay for all remaining eligible claims. It also protects taxpayers from bearing the cost of damages, losses, and response efforts.

Our service commitment

We are committed to ensuring that when there is a major crude-by-rail accident, our goal is to provide fair and timely compensation.

Claimants who come to us do not need to hire a lawyer or go to court.

But first, compensation will be provided from the federally regulated railway company involved.

Our administration

The Rail Fund is managed by Ship and Rail Compensation Canada, which is independent of the Government of Canada.

The Rail Fund is also known by its legal name, Fund for Railway Accidents Involving Designated Goods

Meet our team

Our governance

Our role is set out in the Canada Transportation Act. The Rail Fund is a specified purpose account in the accounts of Canada.

Our mandate is to focus on:

  • assessing and paying claims, including being prepared to handle a large number of claims
  • ensuring records and systems are properly maintained
  • submitting an annual report to the Minister of Transport to provide to Parliament.

To achieve our objectives, we collaborate with a wide range of partners and stakeholders from the private sector, public institutions, Indigenous communities, and non-governmental organizations in Canada and internationally.

Learn more about the Rail Fund

Our history

Canada’s compensation system has changed since 2016, when the Rail Fund was first created.

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The source of our funds

Find out where the Rail Fund gets the money for compensation.

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