Determination No. R-2025-64

Determination

[1] The Canadian Transportation Agency (Agency) determines that as of April 15, 2025, the date of renewal of its insurance, Tshiuetin continues to maintain adequate third party liability insurance coverage for Certificate of Fitness (CoF) 05001-2 as required by subsection 93.1(1) of the Canada Transportation Act (CTA).

Background

[2] On June 12, 2024, the Agency advised federally-regulated railway companies operating passenger rail services of an inquiry pursuant to section 94.1 of the CTA to determine whether they maintain adequate third party liability insurance as required by the Railway Third Party Liability Insurance Coverage Regulations (Regulations).

[3] This inquiry follows the adoption of an enhanced method to assess the adequacy of passenger rail liability insurance, which the Agency has applied in this decision.

The law

[4] The Agency may inquire into whether a railway company is in compliance with its legislative requirement to maintain at all times adequate third party liability insurance coverage for its operations.

[5] In order to be considered adequate, the Agency must find that the third party liability insurance coverage is sufficient to compensate for:

• third party bodily injury or death, including injury or death to passengers;
• third party property damage, excluding damage to cargo; and
• named perils pollution;

arising from the operation of the railway.

Analysis

[6] The Agency has reviewed data provided by Tshiuetin to determine Tshiuetin’s risk profile based on passenger ridership, volume of railway traffic, speed of trains, number of grade crossings, types of population areas served, method of train control, and overall safety record associated with Tshiuetin’s passenger service, allowing for the examination of risks associated with the proposed operations.

[7] The Agency has reviewed the following documents provided by Tshiuetin:

• its renewed Certificate of Insurance for 2025–2026;
• risk assessments provided by insurance and risk management experts;
• its anticipated ridership figures and load factors; and
• a description of insurance policy coverage.

[8] The Agency also assessed Tshiuetin’s financial capability to sustain its proposed self-insurance levels. Based on a review of Tshiuetin’s audited financial statements, the Agency is satisfied that Tshiuetin can support the proposed self-insurance retention amounts.

[9] The Agency is satisfied that Tshiuetin continues to maintain adequate third party liability insurance coverage for its operations and the inherent risks of the associated passenger rail service.

[10] In accordance with section 94 of the CTA, Tshiuetin must notify the Agency, in writing and without delay, of any alteration of its liability insurance coverage, including any change in its financial situation that might impact its capacity to self-insure, or of any operational changes that may affect this coverage.