Question: What position have insurance companies taken on E-bike and electric scooter battery fire risks? Would they deny any claim due to fire until legislation covers this area?
We are hearing about more fires from E-bike and E-scooter batteries. Should the body corporate have a ruling in place? I have raised this question with the chairperson of our body corporate but have not received a reply other than that they will look into it.
What position have insurance companies taken? Would they deny any claim due to fire until legislation covers this area?
Answer: Insurers can only deny claims when policy coverage is not applicable.
A Strata Manager may need to be consulted to advise if a by-law is appropriate or possible.
Insurers can only deny claims when policy coverage is not applicable, such as when exclusions or policy conditions are triggered. Our experience is that many insurers have not yet incorporated specific exclusions or conditions related to the charging and storage of electric vehicles.
To proactively address this potential gap and mitigate the risk of incidents, we recommend that the body corporate takes the following steps to raise awareness among residents:
Educational Outreach: The body corporate could initiate an educational campaign to inform residents about the potential risks associated with charging and storing electric scooters and bikes.
Appropriate Charging Areas: Encourage residents to charge their scooters and bikes in well-ventilated areas, away from combustible materials.
Use of Approved Chargers: Emphasise the importance of using only manufacturer-approved chargers. Non-compliant chargers may pose safety risks.
Unplugging Lithium Batteries: Remind residents to unplug lithium batteries once charging is complete. Overcharging can lead to safety hazards, and this simple practice can reduce the risk of potential fires.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.