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Estimated cost of major rail disasters in Canada may top planned compensation fund


The Canadian government's recent legislation that would increase insurance requirements for railroads and establish a disaster compensation fund would prove inadequate in case of a catastrophic event in a densely populated area, reported Thestar.com.

A 2014 study by the U.S. Department of Transportation estimated almost $6 billion in damage if a major derailment occurred in a densely populated area. The estimates in that study are much higher than the amounts in the Canadian federal bill.

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