EV repair standards in focus as insurers flag safety, value risks

Malaysia’s general insurance industry is closely watching the electric vehicle (EV) transition, with regulators working to introduce minimum repair standards to address safety risks and industry gaps. 

General Insurance Association of Malaysia (PIAM) CEO Chua Kim Soon stressed that standards will be set by authorities, particularly the Road Transport Department (JPJ), with insurers playing a supporting role in the ecosystem.

He highlighted that EV repairs require specialised facilities and trained personnel due to high-voltage battery risks, stating that improper handling could endanger both workers and road users. 

He added that the absence of uniform standards today makes it difficult to assess competency across workshops, especially as manufacturers adopt differing repair models and requirements.

At the same time, he pointed to falling EV resale values as a growing concern for insurers and owners, with depreciation outpacing conventional vehicles and potentially widening the gap between insured value and outstanding loans.

“There’s no minimum standards being set, so if you were to ask whether someone is qualified to repair EVs, that’s a big question mark,” he said during PIAM’s media briefing today (May 6).

He added that the industry is evaluating how EV insurance frameworks may need to be restructured.