AXA UK has warned policyholders of the growing fire risks associated with the lithium-ion batteries used in electric bikes and scooters. Lithium-ion batteries pose a significant fire risk when damaged, over-charged or exposed to extreme temperatures. Over the past two months, AXA has covered almost half a million pounds of losses on two large claims caused by lithium battery fires.
It is expected that the frequency and cost of these fires are likely to grow exponentially as transport via e-bikes and e-scooters becomes more popular. AXA’s claims data show that these fires most frequently occur within residential buildings where the associated damage can be devastating.
One of the recent large claims was the result of a faulty e-scooter battery which was being charged in the kitchen of a ground floor terrace flat. An explosion occurred and fire spread through the home, reaching two storeys above. The second occurred in a block of flats where an e-bike battery was being charged. The fire totally destroyed the flat and caused smoke damage to the flats on either side. Thankfully, nobody was injured in either incident.
The data also highlights to insurers and brokers how the risk profile of inner city HMO or multi-apartment blocks will change over time, as e-scooters continue to be promoted as a green transport solution. This is despite the huge cost of mining lithium and cobalt for battery factories, child/slave labour used in mining, plus the transport miles racked by distribution and sale, then the limited lifespan of the battery packs and the disposal problems.
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