Are EVs a hearth 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 automotive provider hearth as saying EV fires are usually not extra harmful than inside combustion engine (ICE) fires and simply must 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 automotive carriers however says analysis reveals fires in battery EVs are usually not extra frequent or extra harmful than ICE fires.

As an illustration, whereas media hypothesis initially pointed to an EV contributing to the Fremantle Freeway hearth, Insurance coverage Enterprise Australia says more moderen information stories say the fireplace trigger continues to be unknown.

From March 2024, the Worldwide Maritime Organisation (IMO) will think about 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 situation.