Are EVs a fireplace danger for insurers?

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

That’s based on 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 usually are not extra harmful than inside combustion engine (ICE) fires and simply have to be addressed in another way.

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

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

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

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

The Insurance coverage Council of Australia (ICA) has beforehand mentioned any hearth dangers round EVs often 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 in search of suggestions on the fireplace problem.