Regulation - LGIC

1) Proposed amendment to Ontario Regulation 301/96 (Insurance) under the Shortline Railways Act, 1995. 2) Repeal of Ontario Regulation 300/96 (Designation) under the Shortline Railways Act, 1995.

Regulation Number(s):
Ontario Regulation 301/96 (Insurance)
Ontario Regulation 300/96 (Designation)
Instrument Type:
Regulation - LGIC
Bill or Act:
Shortline Railways Act, 1995
Summary of Proposal:
1) The Ministry of Transportation of Ontario (MTO) is proposing to have the primary insurance liability limit of not less than $10 million dollars per occurrence increased to $25 million dollars per occurrence, to harmonize with federally regulated railway companies. These minimum liability levels were set over 20 years ago in 1996.

2) Repealing an unnecessary regulation that currently lists shortlines that do not need to be listed in a regulation. This is a housekeeping item that will be complimented by proposed legislative amendments to the Shortline Railways Act, 1995 and has no effect on railway operations or safety oversight.
Analysis of Regulatory Impact:
1) This regulatory amendment increasing the minimum insurance levels to $25M per occurrence may result in new costs to 2 existing shortline operators.
Today there are 10 licenced shortlines in Ontario, 4 tourist shortline operators and 6 freight shortline operators. Most of the existing Shortlines have liability levels that meet this proposed new minimum. Shortlines carrying freight in Ontario already carry a minimum of $50 - 100 million dollars of liability insurance.

These levels will keep in line with minimum liability insurance requirements set for federally regulated freight railway companies. This regulation will ensure that any new operators will also have this new minimum level of insurance.

2) The repeal of O. Regulation 300/96 will not have any new costs or savings to shortline operators. The removal of this contributes to the Open For Business burden reduction targets by eliminating unnecessary regulations.
Further Information:
Proposal Number:
Posting Date:
October 28, 2019
Comments Due Date:
November 12, 2019
Contact Address:
Carrier Safety Policy Office
Carrier Safety and Enforcement Branch
3rd Floor, 301 St. Paul Street
St Catharines, ON L2R 7R4