Amtrak could pay $200 million to train crash victims
Amtrak may have to pay a $200 million to train crash victims. This is for the first time for the company and this limit has been set by Congress. However, it could be a very low amount to cover the loss in last week's derailment in Philadelphia, in which eight people died and over 200 people got injured.
This much payout for a single passenger rail incident was related to an attempt made in 1997 for passing a law, which would save Amtrak from financial damage in addition to helping it become independent. Now, the amount would be just below $300 million, which has been adjusted for inflation. The law does not take into account adjustment for inflation. Amtrak is also not close to become independent.
It was found in an Associated Press review of the earlier cases that for the first time, Amtrak has been liable for a $200 million payout for a single passenger rail incident. It is yet unclear that how high the costs of victims' deaths and injuries will reach.
During the accident, the train left Washington and headed to New York and it was moving at over two times the speed allowed on a curve. It then derailed after it stopped at Philadelphia's 30th Street Station. Investigators haven't been able to determine why the train was running at such a high speed.
An Amtrak employee filed the first lawsuit on Friday and sought over $150,000 in damages. Amtrak is not limited by the $200 million cap since it is just for passengers. According to Frank Wilner, author of the book, ‘Amtrak: Past, Present, Future’, "I don't think Amtrak has ever faced a situation like this, and since they own the Northeast Corridor, they're 100 percent on the hook".