OTTAWA — The Tories want to increase the amount of insurance rail companies must carry if hauling dangerous goods and force them to contribute to a fund so taxpayers don’t have to pay to clean up their disasters.

The new bill is part of the government's response to the tragic derailment in Lac-Megantic, Que., on July 6, 2013. A runaway crude-carrying train jumped the tracks in the centre of the small town near the Maine border, killing 47 people and leaving a massive and costly mess to clean up.

"The concerns of the Federation of Canadian Municipalities, and the very real tragedy that happened in Lac Megantic have been heard, but the legislation goes further beyond the response to what happened," Transport Minister Lisa Raitt told reporters.

The bill, tabled Friday, says rail companies that carry no or low quantities of dangerous goods would carry a minimum of $25 million in insurance, while those carrying a substantial quantity of dangerous goods would be forced to carry up to $1 billion.

Shippers would pay a levy of $1.65 per tonne of crude oil shipped to build up a supplementary compensation fund to pay for damages exceeding a railway's minimum insurance level if an accident involving crude oil occurs.

"We're starting with crude because the transportation of crude has evolved into these very long unit trains, and there's a multiple of cars associated with it," Raitt said. "With an increase in cars is an increased risk."

Raitt said the government is increasing the number of inspectors and giving them additional powers to order railway companies to fix problems.

NDP transport critic Hoang Mai says the measures are a step in the right direction, but more resources are needed so inspectors can enforce regulations.

Liberal transport critic David McGuinty said the insurance requirements aren't sufficient, particularly if there's a disaster in an urban area.