In a meeting with members of the Thai General Insurance Association, Apakorn Panlerd, the assistant secretary-general of the OIC, emphasized the importance of employing a risk management strategy for handling electric vehicle (EV) cases. He highlighted that EVs operate differently from internal combustion engine (ICE) vehicles, necessitating insurers to assess and manage higher risks associated with them.
Insurers were urged to thoroughly evaluate all related details before providing insurance for EVs and to determine appropriate premium rates that accurately reflect the product’s risk. It was emphasized that EVs use different parts than ICE vehicles, and insurers should consider the potential unavailability of certain parts in the market.
The OIC also urged insurers to prepare their support systems, including IT and vehicle inspection departments, to efficiently handle EV insurance claims. Furthermore, insurance companies were advised to refer to the official document titled “Policy for Insurance of Battery Electric Vehicles,” which provides guidance on designing formats, terms, and premium rates for EVs.
The objective of the meeting was to establish industry standards for the design and handling of electric vehicle insurance. Apakorn highlighted the public’s concerns about the safety of EVs, citing recent issues such as a significant recall in the US and a decline in EV sales in South Korea due to battery combustion incidents. Additionally, safety concerns, limited charging stations, and higher prices compared to fossil-fuel vehicles were identified as factors deterring customers from purchasing EVs.
Furthermore, it was mentioned that the OIC might contemplate mandating the submission of a risk management plan for any insurance company offering EV insurance, should there be evidence of insurers disregarding safety measures or engaging in risky operations.
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