Page 27 - Insurance Times June 2024

Risks on the Road weight could result in a severe impact when the EV collides
with another lighter vehicle, a pedestrian, or a cyclist on
The primary goal of EVs is still the same as that of
the road, causing serious injuries or death.
conventional internal combustion engine vehicles (ICEVs): to
transport people safely from one destination to another.
However, when it comes to the core powertrain The existing repair network and infrastructure are well-oiled
for ICEVs but ineffective for servicing EVs. The technological
components and the way they work, the construction of an
advancement that sets the standard for EVs results in a
EV is different from that of an ICEV. Conventional vehicles
scarcity of dedicated service centers and skilled technicians.
are propelled by fossil fuel-powered internal combustion
engines (ICE) that convert the fuel to mechanical energy The integrated nature of the components, their complexity,
through combustion. EVs, on the other hand, are propelled and their sensitivity to any damage create the situation
where, after an accident, the parts will need to be replaced,
by electric motors that are powered by rechargeable
not repaired, thus inflating the cost.
batteries and convert electricity into mechanical energy.
While ICEVs have more moving parts and require regular
maintenance, EVs have fewer moving parts and require less Besides, more time is required to repair EVs, as there is a
need to remove the battery pack due to safety reasons
maintenance.
before performing any important repair work and
reinstalling them properly. Risks could also arise when a
EVs are still in the early stages of evolution, and every
component or software problem necessitates a product
component in an EV is undergoing research to improve
efficiency and safety. The dominant design, standards, and recall decision, but the owner is non-compliant. The four
essential powertrain elements-the battery pack, electric
regulations are yet to emerge. Till then, EVs present the
motor, charging system, and regenerative braking system-
insurance industry with new risks (see Figure 1). EVs and
their components are expensive when compared to presently stand out as the most prominent and specialized
areas of concern.
conventional vehicles, which caused the need for increased
insurance coverage.
Battery pack
The conventional ICEVs are predominantly mechanical and, The battery serves as the principal component in an EV, and
over the years, have started incorporating sensors and the performance of the vehicle is dependent on the material
software to provide safety and comfort. In contrast, EVs are from which the battery is constructed. There are several
essentially managed by advanced sensors, software, types of batteries made with different combinations of
electronics, and connectivity. Software is at the core of EVs, lithium, nickel, cobalt, and manganese. Currently, lithium-
and the sophistication of these algorithms defines the ion batteries are considered the standard battery option as
features, functions, and value of any EV. A faulty component they are relatively light in weight, charge quickly, have a
or piece of software could cause major problems, resulting high-power density, which makes them highly efficient in
in an increased product recall. Failure to install important terms of energy stored relative to their weight, offer the
software updates, whether inadvertent, deliberate, or due best mileage on a full charge when compared to other
to unforeseen circumstances, could pose a new safety battery options, and have a longer battery life.
hazard for EVs.
However, a concern with lithium-ion batteries is that in the
The most apparent characteristic of EVs is their heavier curb event of physical damage, overcharging, over discharging,
weight when compared to ICEVs of similar types. The or exposure to external fires, they may initiate thermal
battery pack in the EVs is the main reason for the increased runaway-an ongoing, self-sustaining exothermic chemical
weight. For example, a 100-kilowatt-hour (kWh) battery reaction. Thermal runaway will make the battery overheat,
could add 400-500 kilograms. The original equipment catch fire, and/or explode. These fires are difficult to
manufacturers (OEMs) try to offset this increase in weight extinguish and may generate high levels of toxic gases.
with the use of lighter body materials. A higher curb weight
has its own advantages and disadvantages. The advantage EVs are shipped aboard roll-on/roll-off ships that are
is that the vehicle will be more stable on the road and may designed to carry wheeled cargo, such as cars. It is said that
not roll in the event of an accident. This will protect the a high battery state of charge (SOC) and stowage of EVs near
passengers during a collision. However, the increase in one another increase the risk of fire. While different battery

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