Railroad’s insurance falls short of disaster cleanup
The Montreal, Maine and Atlantic Railway’s insurance coverage is capped at $25 million, far short of the estimated $200 million in cleanup costs following the derailment of a train carrying crude oil through the Quebec town of Lac-Mégantic.
The Portland Press Herald reported the company’s liability insurance policy covers property damage, bodily injury, fire suppression and environmental cleanup, up to $25 million. Lindsay Newland Bowker, a retired environmental risk manager who lives in Stonington, told the paper the figures show the railroad was underinsured.
The company also faces claims from relatives of the 47 people who were killed in the accident and owners of 30 buildings destroyed in the town, claims likely totaling tens of millions of dollars.
So far, the town of Lac-Mégantic has paid nearly $8 million toward cleanup efforts after MMA and its insurer missed a payment deadline set by the town.
Provincial authorities in Quebec say despite the shortcoming of MMA’s insurance plan, it does not mean the company will be off the hook for damages. The provincial government registered Thursday as a guaranteed creditor during bankruptcy proceedings for the company’s Canadian operation, in hopes of recovering some of the cleanup costs.
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