U.S. senator files legislation to replace cap on damages for passenger rail liability following deadly Amtrak derailment

U.S. Sen. Bill Nelson (D-Fla.) filed legislation on Monday to replace the cap on damages for passenger rail liability following last week’s Amtrak derailment, which claimed the lives of at least eight people and injured more than 200 people.

Nelson’s bill would replace an “outdated cap” on damages for passenger rail liability following such an accident – a cap set almost two decades ago in federal law at US$200 million, the senator said in a statement.

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“That amount, some experts are saying, may not be enough for medical and other expenses given the scope of the potential damages in the May 12 Amtrak crash,” the statement said, adding that so far eight passengers have died with dozens injured, at least five critically.

“We can’t allow anyone to suffer additionally due to an outdated cap based on mid-1990 dollars,” Nelson said, referring to the 1997 measure passed by Congress to limit the amount a passenger rail company would have to pay victims after an accident.

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Back then, Congress decided the cap was necessary to keep Amtrak and a then-sagging rail industry from potential financial failure in the event of a major accident, Nelson reported.

In the wake of a deadly two-train collision in California about eight years ago, Sens. Dianne Feinstein and Barbara Boxer, both California Democrats, sought to raise the cap to US$500 million, but their legislation in 2010 didn’t get a vote, Nelson said.

Related: Amtrak CEO says railroad takes ‘full responsibility’ for role in deadly Philadelphia crash

The draft of the bill, published on Nelson’s website, would raise the cap to US$500 million for any passenger rail incident, effective immediately, and the liability cap would “be adjusted annually by the Secretary of Transportation to reflect changes in the Consumer Price Index – All Urban Consumers.” No later than two years after the date of enactment, the Secretary of Transportation would also consider whether “additional adjustments are needed,” the proposed bill states.

#Amtrak engineer made no report of object hitting windshield before crash, NTSB says: http://t.co/L69BzEZMxi pic.twitter.com/Ce9WLlcl8a

— Reuters Top News (@Reuters) May 18, 2015