Our history

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

Here are some key moments in the history of the Rail Fund.
 

Key historical moments

  • A runaway train hauling 72 tank cars of crude oil derailed in the centre of the town of Lac-Mégantic, Québec. The cars ruptured and exploded, causing a blaze that burned for days. The derailment, tragically, was responsible for the deaths of 47 people. It also caused extensive damage to properties and the environment.
  • Damages for the Lac-Mégantic accident were estimated to be about $1.5 billion. About 4,300 claims were submitted for:
    • deaths and mental distress
    • economic losses
    • insurance claims
    • government and municipal claims
  • The railway company involved, Montreal, Maine and Atlantic Railway (MMA), had only $25 million in liability insurance. This was not enough to cover all the damages, and the company soon declared bankruptcy.
  • A claims fund was put in place and overseen by the courts. The people who suffered damages and losses, and their families, received mixed messages about where to turn for compensation.

  • The Safe and Accountable Rail Act became law, strengthening the liability and compensation regime for railway companies in Canada.
  • A new class of tank car was adopted, the TC-117/DOT-117, which was a much more robust, jacketed type of tank car.

  • The Rail Fund started its operations. This included collecting a levy from railway companies.
  • Use of the DOT-111 class of tank cars, like those involved in the Lac-Mégantic accident, were prohibited from transporting crude oil in Canada.

  • The Rail Fund distributed the first version of its Claims Manual to key partners.
  • The Rail Fund hosted its first workshops, including the first tabletop exercise, as well as webinars.

  • The Rail Fund hosted a second tabletop exercise.
  • There was a rail accident involving crude oil in Red Deer, Alberta.

  • The Administrator’s objective of engaging with all provinces was reached.
  • There were three rail accidents involving crude oil, in Barwick, Ontario; St. Lazare, Manitoba; and Guernsey (Lanigan), Saskatchewan.

  • The Rail Fund sent its first annual Crude-by-Rail Update forms to the 26 federally regulated railway companies.
  • There were two rail accidents involving crude oil, in Guernsey, Saskatchewan and Emo, Ontario.

  • The Rail Fund reached a five-year readiness milestone and celebrated with activities including publishing a three-episode video series.
  • The Rail Fund also signed a contract with a claims management company to serve on a standby basis.

  • The Rail Fund doubled its engagement in outreach activities.
  • The Rail Fund enhanced its legal preparedness.

  • The Rail Fund signed agreements with railway companies to be prepared for a future transition of claims.

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