The General Insurance Association of Malaysia (PIAM) has released a statement to clarify insurance coverage for electric vehicle (EV) owners and property owners. This comes after an EV being charged was believed to have caused a fire that gutted a two-storey terrace house in Alam Damai, Cheras on Sunday.
What’s covered under what? What should you do to protect 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, regardless of the ignition source, subject to the policy terms, conditions and exclusions, and provided there is no fraud, deliberate act or other applicable breach of policy conditions.
- EV Chargers as Property Fixtures: Permanently installed (hard-wired) EV chargers may be categorised under the “buildings” section of a home 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 Professional Installation: Insurers require homeowners to take reasonable precautions and maintain electrical safety standards. In assessing claims, insurers will evaluate official investigation reports such as those from Jabatan Bomba dan Penyelamat Malaysia to rule out deliberate acts such as 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 permanent EV charger. Declaring electrical upgrades ensures the property’s Sum Insured reflects current rebuilding costs and helps provide clarity on the policy’s coverage during the claims process.
Key Insurance Recommendations for EV Owners
- Maintain Adequate Sum Insured: To avoid underinsurance, property owners should verify 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 Building 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 adjacent 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 can purchase optional extensions to increase this liability limit.
- Review Dual Policies: EV owners should review both their motor and home insurance policies to address 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 companies. If you’re planning the switch to EVs, go through the checklist above and make sure that your home charger is installed by a professional – safety first.
