Insurers association seeks clarity on disposal of end-of-life electric vehicles

The Insurance Association Malta (IAM) has called for clearer procedures governing the dismantling and disposal of end-of-life electric vehicles (EVs), saying questions remain over battery handling, disposal costs and the acceptance of scrapped vehicles.

In a statement on Friday, the association reacted to Energy Minister Miriam Dalli’s clarification in Parliament this week that, under European legislation regulating vehicles and batteries, the manufacturer, importer, or distributor that originally placed a vehicle on the market is responsible for the costs of dismantling it and treating its battery.

“There are still several matters that have yet to be resolved, particularly relating to the safe storage, handling, and transportation of EV batteries,” the association said in a statement.

It added that Malta currently lacked suitable facilities to treat the batteries, while restrictions applied to shipping them overseas.

The association said that although some importers had begun agreeing to take back EV batteries free of charge, vehicle owners and insurers were still being asked to pay for dismantling accident-damaged vehicles and removing their batteries before the vehicles could be scrapped.

“We are seeking legal clarification on whether these charges are permitted under the law, particularly in light of the minister's clarification,” IAM said.

Another issue raised by the association concerns vehicles delivered to authorised end-of-life treatment facilities after their batteries have already been removed.

IAM said it had been informed of cases in which facilities refused to accept such vehicles or issue the Certificates of Destruction needed to deregister them.

According to the association, EU and Maltese legislation provides for the relevant producer or authorised operator to be responsible for disposal once a battery has been lawfully removed and the necessary documentation is available.

“These practical difficulties demonstrate that who is legally responsible is only part of the solution,” IAM said, adding that consistent procedures were also needed to prevent unnecessary delays and additional costs.

The association called on the Environment and Resources Authority (ERA), Transport Malta, vehicle importers and authorised scrapyards to establish clear procedures for dismantling and disposing of end-of-life electric vehicles and their batteries.

It also urged the authorities and industry stakeholders to provide guidance to vehicle owners, insurers and other parties on their respective responsibilities and the steps they must follow.

IAM said arrangements for disposing of electric vehicles should form part of wider efforts to encourage their use and meet environmental targets.

“If Malta is serious about encouraging greater EV ownership and meeting its environmental targets, consumers must have confidence in the entire life cycle of these vehicles,” the association said.

“Ensuring that safe and effective disposal arrangements are in place is essential, both for protecting the environment and for building public confidence in electric vehicles,” it concluded.