Proposed reforms in Queensland aimed at cracking down on illegal and high‑powered e‑bikes and e‑mobility devices have been welcomed by insurers, with calls for similar measures to be adopted across Australia.

Under the proposed changes, e‑mobility devices capable of exceeding 25km/h would be reclassified as motorbikes, meaning they may be required to be registered and covered by compulsory third party (CTP) insurance.

Closing a dangerous insurance gap

Insurers say the reforms are a necessary response to rising injuries and fatalities involving high‑powered e‑bikes operating outside existing road safety and insurance frameworks.

At present, many illegal or modified devices:

• can’t be registered,
• fall outside compulsory insurance schemes, and
• leave riders, pedestrians and motorists exposed in the event of an accident.

Simply put, if a device can’t be insured, everyone absorbs the risk—often unknowingly.

Safety, not convenience, is the priority

The proposed laws send a clear message that unregulated, high‑powered devices don’t belong on roads or shared paths without proper controls. From an insurance perspective, registration and compulsory insurance are fundamental to ensuring injured parties can access compensation and medical support after serious incidents.

Watching for unintended consequences

While broadly supportive, insurers have also flagged the importance of monitoring how new shared‑path speed limits influence rider behaviour.

There is concern that lower shared‑path speed caps could push some riders onto higher‑speed roads, potentially increasing the severity of accidents and the likelihood of serious injury claims. This highlights the importance of pairing rule changes with education, enforcement and infrastructure planning.

Enforcement and age limits matter

Industry data shows younger riders are disproportionately represented in serious e‑mobility incidents. Insurers support a proposed minimum rider age of 16, citing inexperience, risk‑taking behaviour and reduced hazard perception as contributing factors.

Consistent enforcement across states—and adequate police training and resourcing—will be critical if reforms are to deliver meaningful safety and insurance outcomes.

A growing fire risk

Insurers have also raised concerns about lithium‑ion battery fires, particularly in modified or non‑compliant devices. Fires linked to e‑mobility batteries increasingly affect homes, apartments and commercial premises, with losses extending well beyond the device itself.

What this means for Action clients

As e‑mobility use grows, so does the importance of understanding:

• whether devices are legally classified and insured,
• how liability is treated following accidents, and
• how property and liability policies respond to battery‑related fires and third‑party injuries.

Changes like those proposed in Queensland reflect a broader national shift toward bringing emerging transport risks back within established insurance and safety frameworks.

If you operate a business, manage strata property, or use e‑mobility devices as part of your operations, Action Insurance Brokers can help you understand how these changes may affect your insurance arrangements and risk exposures.

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