The General Insurance Association of Malaysia (PIAM) has released an announcement to make clear insurance coverage for electric vehicle (EV) owners and property owners. This comes after an EV being charged was believed to have caused a hearth that gutted a two-storey terrace house in Alam Damai, Cheras on Sunday.
What’s covered under what? What must you do to guard your property? Below are PIAM’s points, verbatim
Core Guidance & Policy Clarifications
- Standard Fire & Houseowner Coverage: Standard Houseowner and Fire insurance policies in Malaysia cover specified perils, including fire damage, whatever the ignition source, subject to the policy terms, conditions and exclusions, and provided there isn’t a fraud, deliberate act or other applicable breach of policy conditions.
- EV Chargers as Property Fixtures: Permanently installed (hard-wired) EV chargers could also be categorised under the “buildings” section of a house policy as fixtures and fittings. Unattached or portable charging cables typically fall under specialised EV motor insurance policies or add-on packages offered by insurers.
- Significance of Skilled Installation: Insurers require homeowners to take reasonable precautions and maintain electrical safety standards. In assessing claims, insurers will evaluate official investigation reports comparable to those from Jabatan Bomba dan Penyelamat Malaysia to rule out deliberate acts comparable to arson, fraud, or non-compliance with statutory regulations (e.g. illegal, uncertified electrical modifications/installations).
- Duty of Disclosure: Homeowners are strongly advised to notify their insurers upon installing a everlasting EV charger. Declaring electrical upgrades ensures the property’s Sum Insured reflects current rebuilding costs and helps provide clarity on the policy’s coverage through the claims process.
Key Insurance Recommendations for EV Owners
- Maintain Adequate Sum Insured: To avoid underinsurance, property owners should confirm that their policy Sum Insured reflects updated rebuilding costs, accounting for home modifications and modern fixtures. Homeowners can estimate rebuilding costs using PIAM’s complimentary Constructing Cost Calculator
at https://bcc.piam.org.my/ for guidance. - Evaluate Third-Party Liability: Given the potential for fire or electrical incidents to spread to adjoining properties, particularly in terrace homes or high-rise residences; homeowners should evaluate their public liability limits. While standard Houseowner policies generally provide a limit of RM50,000, policyholders should purchase optional extensions to extend this liability limit.
- Review Dual Policies: EV owners should review each their motor and residential insurance policies to handle potential gaps in coverage, ensuring comprehensive protection for the vehicle, charging equipment, and residential structure.
Homeowners and EV owners with questions regarding policy terms or specific add-on options are encouraged to contact any of PIAM’s 19 member general insurance firms. When you’re planning the switch to EVs, undergo the checklist above and ensure that your own home charger is installed by knowledgeable – safety first.
This Article First Appeared At paultan.org
