Are EVs a fireplace danger for insurers?

Most EV batteries are thought of a low hearth danger and rigorous requirements apply, nonetheless a notion persists amongst media and the general public that EVs are a excessive hearth danger, some insurance coverage stakeholders say.

That’s in accordance with Insurance Business Australia which quotes an Worldwide Union of Marine Insurance coverage (IUMI) supply after the Fremantle Freeway automobile service hearth as saying EV fires should not extra harmful than inside combustion engine (ICE) fires and simply should be addressed in a different way.

IUMI has revealed a best practice guide for transporting EVs on ships with analysis about EV fires.

An accompanying launch suggests delivery group issues are rising about fires on automobile carriers however says analysis reveals fires in battery EVs should not extra frequent or extra harmful than ICE fires.

For example, whereas media hypothesis initially pointed to an EV contributing to the Fremantle Freeway hearth, Insurance coverage Enterprise Australia says newer information experiences say the fireplace trigger remains to be unknown.

From March 2024, the Worldwide Maritime Organisation (IMO) will contemplate methods to cut back hearth dangers involving delivery.

The Insurance coverage Council of Australia (ICA) has beforehand stated any hearth dangers round EVs normally concern their charging stations or areas the place batteries are saved, including insurers have seen an increase in claims associated to such incidents.

Insurance coverage Enterprise Australia is looking for suggestions on the fireplace challenge.