Canada's railways will have to carry additional insurance under proposed legislation introduced in response to an oil train explosion that killed 47 people in Quebec last year.

The bill, introduced Friday, would also set up a compensatory fund paid for by oil shippers.

Transport Minister Lisa Raitt said the legislation will mean any railway or company that ships crude oil will share accountability for cleanup and compensation costs in the event of an accident.

Raitt says the bill would impose mandatory minimum insurance levels on railways depending on the type and volume of the dangerous goods being transported.

Much of downtown Lac Megantic, Quebec, was destroyed on July 6, 2013, by a raging fire caused when an unattended train derailed and exploded.