PETALING JAYA: As electric vehicles (EV) become increasingly common on Malaysia’s roads, insurers are urging owners to look beyond standard motor coverage and ensure protection against risks such as fire, damage and home charging units.
This comes as EV ownership continues to surge, rising from 3,127 units in 2022 to 44,813 last year.
A year-on-year comparison between February last year and this year also showed registrations climbing by nearly 60%, according to information from data.gov.my.
Charging infrastructure has expanded alongside demand, with 5,624 public EV charging points installed nationwide, comprising 1,923 direct current fast chargers and 3,701 alternating current chargers.
According to the General Insurance Association of Malaysia (Piam), additional protection can be obtained by extending coverage under existing motor insurance policies.
“EV owners can purchase add-ons to their policies, which provide coverage for charging units and related damages,” said Piam chief executive officer Chua Kim Soon in an interview.
Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu revealed in the Dewan Negara last year that 27 fire incidents involving electric and hybrid vehicles were recorded by the Fire and Rescue Department between 2023 and July last year.
Chua added that comprehensive motor insurance policies offer broader protection, covering fire, collisions, theft and accidental damage, unlike third-party or third-party fire and theft policies, which provide more limited coverage.
“Third-party policies cover damage and injuries caused to others, while third-party fire and theft policies extend protection if the vehicle is stolen or catches fire.
“A comprehensive policy combines these elements and protects both the insured driver and other parties involved in accidents.”
He noted that such coverage also applies to EVs charged in high-rise buildings and condominiums, although building owners must ensure adequate insurance is in place.
“There are two key aspects – fire insurance and liability coverage. Charging stations introduce new risks, so building owners need to ensure their interests are protected,” he said.
For home users, damages linked to charging units can be covered by declaring the charger under existing home fire insurance policies.
“Simply inform the insurer of the unit’s value through the proposal form, and it can be included. The insurer will then determine the additional premium for the extended coverage.”
Chua added that homeowners should notify insurers whenever new assets are introduced, particularly when additional risks may arise.
“It helps if insurers are aware of the additional risks. This can also be done after a policy has been purchased or renewed,” he said, noting that premiums generally remain reasonable.
EV insurance packages also come with specialised add-ons not typically associated with internal combustion engine vehicles, such as assistance when a battery is depleted.
“A vehicle can be towed to the nearest charging point, or in some cases, a portable charger can be used by licensed tow truck operators to provide enough charge to reach the nearest station,” he said.
Piam noted that liability claims related to charging ports remain low based on internal data.
On overall claims, it said EVs used domestically between 2022 and 2024 typically had a sum insured of around RM100,000, but added that the rapidly growing market means claims trends may evolve in the coming years.
