There are more and more strata developments installing electric vehicle chargers(EVCs). Many questioned about whether existing insurance put in place by any Management Corporation (MCST) would be suffice to provide coverage against a greater fire risk envisaged in a carpark of a strata development, installed with new EVCs.
The usual damage insurance policy ( could be fire or all risks)of an MCST only cover damages caused to the ‘sub-divided building’ as defined in Section 69 of the Building Maintenance & Strata Management Act (BMSMA). The damage policy of an MCST does not cover damages caused by fire for vehicles parked at the common property such as carpark. These vehicles are not deemed common property and do not form part of the ‘sub-divided building’. However, that does not prevent an owner of a damaged vehicle to file a claim against the MCST for damages of his vehicle caused at the common property.
An MCST is therefore required under Section 71(1)(b) of the BMSMA to effect an insurance in respect of damage to property, death or bodily injury occurring upon the common property for which the MCST could become liable in damages. If an occupant or a member of the public should be injured or their personal property damaged by the EVC, they could make a costly claim against the MCST. Public liability insurance will help cover the legal fees associated with defending such a claim, along with any compensation which an MCST may be liable to pay.
The existing public liability insurance policy may not automatically extend coverage to an MCST for new EVCs. The existing public liability policy should be re-examined and if needed, ask for an extension of coverage for the newly installed EVCs. There are many war stories of MCSTs being ‘caught out’ when the unusual or unexpected happens. You need to tell the insurer anything that may increase the risk to them. Someone argue that the MCST may by contract, seek an indemnity from an EVC vendor for damages or injuries caused by an EVC. That may be true but the MCST will have to fork out from its own pocket first to seek that action. An insurance contract for public liability is a defence policy. With an EVC extended coverage in a public liabilty policy, the MCST or its insurer may delegate a potential liability to an EVC vendor.
The price for a Certificate of Entitlement (COE) to own a vehicle in Singapore has hit the ‘sky’.Many hundreds of thousands dollars are required to buy a vehicle (car). There is certainly a higher tendency for any aggrieved party to seeking compensation from the MCST for damages caused to his vehicle. So make sure you find out what is and isn’t covered under the existing insurance and take any appropriate action.
#electricvehicle #liability #stratamanagement #COE #Compensation #insurance
Image credit: Electric Vehicle Charging Station in New York State
