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An Insurance News article quoted that the Australian Competition and Consumer Commission (ACCC) predicts that by 2026 households will have on average 33 devices powered by such batteries1.
A recent article in the Sydney Morning Herald2 stated that while the proportion of these batteries combusting is relatively small, they can cause a lot of damage, especially when the battery explodes indoors. Over the past year, they’ve caused more than 1,000 fires around Australia.
Fires involving lithium-ion batteries are usually not due to manufacturing defects but are linked to:
- User error
- Mechanical damage
- Inappropriate charging behaviour
- Modifications to batteries
- Modifications to batteries
While lithium-ion batteries are not always the cause of a fire, they will add fuel to the fire if present. These fires are intense and volatile, making it very difficult to extinguish.
To reduce the risk of combustion of lithium-ion batteries, fire agencies recommend:
- Buy devices with batteries that meet Australian Standards for vehicle and product safety
- Only buy from reputable sellers and suppliers
- Only use chargers and cables that come with the device
- Don’t leave devices charging overnight or longer than the maximum time stated in the product manual
- Don’t charge near doorways, where a fire would block your exit
- Charge only on hard, non-combustible surfaces
- Charge large battery devices in open areas designated for charging, and not in living areas
- Don’t tamper with battery-powered devices
- Don’t leave devices in the sun
- Never use a device if the battery is swelling, bulging, leaking, damaged or overheating
- Never put batteries in the rubbish
ACCC October 2023 report
In response to the number of battery related fires, the Australian Competition and Consumer Commission (ACCC) released its first report in October 2023 on lithium-ion batteries and consumer product safety3.
The report recommended educating consumers about the safety risks associated with lithium-ion batteries and safe use strategies. In addition to education, it was recommended that standards for storage, transportation, labelling and testing of lithium-ion batteries be established and addressing the sale of unsafe products.
Other suggestions to manage the lithium-ion fire risk include:
- Agree and execute a program for regular fire safety checks and maintenance of fire extinguishers, sprinklers, smoke alarms and fire doors
- Implement evacuation plans and drills for multi-storey residential strata
- Designate safe charging areas for scooters and e-bikes
- Educate strata owners and residents with fact sheets and other resources
- Consider by-laws restricting the type and make of electric bikes and scooters to those that meet Australian Standards for vehicle and product safety
The strata response
The fire safety requirements for strata properties vary slightly across the states and territories. The strata committee – with the help of their
strata manager – should be aware of their local requirements.
Thankfully, strata properties have the added safety of mandatory smoke alarms in common areas and within the lot where smaller devices may be charged.
The most important thing in the event of a fire is that everyone gets out safely – owners and tenants should be made aware of the fire evacuation plan.
Achieving the best Strata Insurance outcome
As a broker, Resolute insurance specialists are here to help you manage this emerging trend in strata properties. Please contact us if you have any questions or would like to know more about the insurance implications of lithium-ion batteries in apartments or to discuss a particular risk in greater detail.
