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Transport Canada > Transport Dangerous Goods (TDG) > Transport Dangerous Goods (TDG) - Publications > Transport Dangerous Goods (TDG) - Behind the words

SECTION 14

Financial Responsibility

14.(1) No person shall handle, offer for transport, transport or import dangerous goods, or manufacture or import standardized means of containment, unless the person is financially responsible in accordance with the regulations.

(2 A person who handles, offers for transport, transports or imports dangerous goods, or manufactures or imports standardized means of containment, shall provide the prescribed proof of financial responsibility to an inspector who requests the proof.

(3) This section does not apply to Her Majesty in right of Canada or a province or to the entities named in Schedules II and III to the Financial Administration Act.

BEHIND THE WORDS

The Regulations may establish activities and classes of dangerous goods for which a person must be able to prove financial responsibility before handling, offering for transport, transporting or importing dangerous goods or manufacturing or importing standardized means of containment. For example, with respect to trucks, the regulations are expected to require proof of insurance to the levels now set uniformly by the provinces across Canada, i.e., one million dollars for dangerous goods and two million dollars for dangerous goods as listed in Schedule XII of the Regulations. This will be proposed through the normal regulation making procedures. Currently, the only other category being actively considered is for those persons responsible for an ERAP. Consideration may be given at a future date to requiring financial responsibility for manufacturers or importers of standardized means of containment.

Enforcement of this section is expected to be conducted in the same way as the verification of a person's automobile insurance. That is, during the course of an inspection, an inspector will request to see proof of financial responsibility which would be provided in the form of an insurance card, proof of a bond or some other document deemed acceptable as a result of regulation. It is emphasized that proof will only be required when specifically requested by an inspector pursuant to regulations.

This section will not apply to federal and provincial government departments, nor to certain crown corporations.

Regulations could allow for conditions under which persons may satisfy the Minister that they self-insure to a satisfactory level.

There is no requirement for the form in which the financial responsibility must be to satisfy the conditions of the section. On a case-by-case basis it may be acceptable to have insurance, a bond, other financial instruments, etc.

RELATED SECTIONS

Section 9 - Funds may be required to provide the notices, or to deal with the recalls

Section 22 - Funds may be required to compensate the government for its expenses

Section 33 - Establishes offences

Section 34 - Funds may be required to satisfy a court order

COURT DECISIONS OF INTEREST

"Please refer to the disclaimer on page 0-1"

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Last updated: 2004-03-15 Top of Page Important Notices