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.
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.
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.
Image: CFA Media
