To get a little technical, you're not setting fire to the oil in the pan. The flash point of canola oil is 600F, more than you can achieve. Nor is the oil boiling generally. Oil will smoke before it boils. But the pan takes up heat far more efficiently than the food, and oil drips on the very hot pan and spatters, sometimes reaching the broiler element where it does indeed exceed 600F and ignites and falls back. Then you can get a little dance of fire over the pan.
As already advised, move the pan down. The pan won't get so hot, and the oil can't jump so high.
"Kitchen duty is awarded only to those of manifest excellence..." - The Master, Dogen