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Big insurance bill for R.I. commuter rail extension

4:12 PM Tue, Feb 24, 2009 |
Bruce Landis    Email

The state's plan to extend commuter rail service south from Providence to Warwick and Wickford means that the state must buy $200 million in liability insurance, transportation officials told the state House Finance Committee.

The news raised some eyebrows on the committee, particularly when the members were told that if a train disaster cost more than $200 million in damages, the state itself would have to pay the rest.

State Transportation Director Michael P. Lewis said the state doesn't have much choice, since Amtrak owns the tracks and has made the insurance coverage a condition for using them.

"Our alternative is not to provide service," Lewis said. He said the coverage will cost about $1.5 million per year.

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