The Insurance Council of Australia (ICA) is calling on prospective e-scooter and e-bike buyers this Christmas to purchase from reputable suppliers and avoid illegal or modified devices, which can void insurance coverage and pose serious fire risks.
Lithium-ion battery devices, such as e-scooters and e-bikes, can ignite from overcharging, physical damage, heat exposure, and manufacturing defects – a concern shared by Fire and Rescue New South Wales (FRNSW).
According to FRNSW, there have been 303 lithium-ion battery-related incidents so far this year across the state, 106 of them involving e-micromobility devices.
While devices like this are typically covered under home and contents insurance, those that do not meet the legal definition, such as those that are modified after purchase, may be excluded. This may impact public liability cover if the rider or a third party suffers personal injury or third-party property is damaged.
Furthermore, modified e-bikes that do not meet the legal definition may be considered a motor vehicle, requiring registration and separate Compulsory Third Party (CTP) insurance.
Tips
The ICA is encouraging e-scooter and e-bike owners to take proactive measures to ensure they are adequately protected, including:
- Review insurance coverage: Ensure your home and contents policy provides sufficient coverage and disclose ownership of e-scooters/e-bikes to your insurer. Consider the rising cost of building materials and adjust coverage accordingly. Stand-alone insurance products providing coverage for personal accidents and public liability while riding privately owned e-scooters and e-bikes are also available.
- Store and recharge safely: Improper storage poses a fire hazard and may lead to an insurance claim being denied. Store devices in a well-ventilated area away from flammable materials and avoid charging them indoors.
- Check building regulations: Some apartment buildings or body corporates may impose specific insurance requirements for e-scooter or e-bike owners. Have these conversations with your strata committee or landlord before the unexpected happens.
How to avoid battery fires
ICA CEO Andrew Hall said, ‘The growing popularity of lithium-ion battery powered devices such as e-scooters and e-bikes is evident, but it’s important users to be aware of the potential risks and implement safety measures.
‘We are now too regularly seeing fires caused by owners who are careless using, charging, and storing their devices, resulting in serious injuries and damage to assets and property.
‘With Christmas just around the corner and with many households looking to electric devices as gift ideas, now is the time to make sure your insurance coverage is up to date and you have a good understanding of the risks associated with e-bikes and e-scooters.
‘We encourage anyone with an e-bike or e-scooter to have a discussion with their insurer to ensure they have the appropriate coverage they need,’ said Mr Hall.
FRNSW Commissioner, Jeremy Fewtrell said, ‘Christmas is a really exciting time of the year. We want people to enjoy that time with their families. We don’t want things to go wrong.
‘Unfortunately, we’ve seen how lithium-ion battery fires have led to fatalities and we’ve seen other people lose their homes and all their possessions due to such blazes.
‘Choose reputable brands when you’re shopping, use the chargers that came with them, don’t mix and match and always be attentive when you are charging.’
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