Canada Transportation Act

Marginal note:Issuance of certificate of fitness

• 92 (1) The Agency shall issue a certificate of fitness

  • (a) for the proposed operation of a railway that relates to a passenger rail service or for the proposed construction of a railway, if the Agency is satisfied that there will be adequate liability insurance coverage for the proposed operation or construction, as determined in accordance with the regulations; or

  • (b) for the proposed operation of a railway that does not relate to a passenger rail service, if the Agency is satisfied that there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV.

• Marginal note:Covered risks

  (1.1) The liability insurance referred to in paragraph (1)(b) must cover the following risks that may arise out of the proposed operation:

  • (a) third-party bodily injury or death, including injury or death to passengers;

  • (b) third-party property damage, excluding damage to goods carried on a shipper’s behalf;

  • (c) risks that are associated with a leak, pollution or contamination; and

  • (d) in the case of a railway accident as defined in section 152.5, the other losses, damages, costs and expenses described in subsection 153(1).

• Marginal note:Self-insurance

  (1.2) For the purpose of paragraph (1)(b), the amount of self-insurance must not exceed the maximum amount of self-insurance that the person who will be responsible for the proposed operation can sustain based on that person’s financial capability.

• Marginal note:Termini and route

  (2) A certificate of fitness issued pursuant to an application mentioned in subsection 91(2) must specify the termini and route of every railway line to be operated.

• Marginal note:Regulations made by Agency

  (3) The Agency may make regulations

  • (a) in respect of the proposed operation of a railway that relates to a passenger rail service or of a proposed construction of a railway, for determining the adequacy of liability insurance coverage, including any self-insurance; and

  • (b) in respect of the proposed operation of a railway that does not relate to a passenger rail service, respecting the provision of information that the Agency requires to determine whether there will be, for the proposed operation, the applicable minimum liability insurance coverage, which includes any self-insurance, as set out in Schedule IV.

• Marginal note:Regulations made by Governor in Council

  (4) The Governor in Council may, by regulation, amend Schedule IV by deleting or adding a class of railway operations and an amount of minimum liability insurance coverage or by amending such a class — including by adding or deleting factors that define its scope — or such an amount.