Prestige Underwriting Welcomes Government Bill To Reduce Fire Risk From E-bike Lithium-ion Batteries

Prestige Underwriting welcomes the Government’s intention to legislate to reduce the fire risks associated with electric power-assisted bicycles (EPACs) and lithium-ion batteries.

The recent King's Speech included an undertaking to introduce the Product Safety and Metrology Bill¹, which in part aims to address the fire risk associated with e-bikes and lithium-ion batteries and clarify legal responsibilities for those supplying products, including online marketplaces. The Bill should also enhance compliance and enforcement measures.

Currently, e-bike manufacturers can self-certify their products for safety, potentially allowing substandard or dangerous items to reach consumers.

Research² conducted by Prestige Underwriting found a significant rise in the average cost of fire-related home insurance claims, now exceeding £24,000. This escalation is partly attributed to the increased usage of lithium-ion batteries in the home. The costs associated with fire-related claims are anticipated to continue rising, due in some measure to the growing prevalence of lithium-ion batteries in consumer devices.

Alison Williams, Managing Director at Prestige Underwriting said:

"The escalating trend in fire-related claims, particularly fuelled by lithium-ion battery-powered devices, is a considerable concern. Legislative change is urgently needed to reduce the risk to households from these devastating fires. We warmly welcome the Government's intention to legislate. While it is early in the process and there is much work to be done, we encourage other insurers to support the Bill to reduce risks to human life and property."

Prestige Underwriting is a supporter of Electrical Safety First, a charity campaigning to reduce deaths and injuries caused by electricity in UK homes. The charity has closely examined the safety concerns around EPACs, particularly conversion kits, compatibility of chargers, EPAC design and lithium-ion battery disposal. The charity has also examined examples of different strategies to mitigate EPAC fire risks applied elsewhere, particularly New York and Paris.

Prestige Underwriting has produced a consumer guide on the issue of lithium-ion fire risks to give customer guidance. The guide is available from brokers with arrangements with Prestige Underwriting and can be downloaded here.