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Okinawa announces first ever e-scooter recall in India!

Okinawa announces first ever e-scooter recall in India!

Okinawa Autotech Pvt. Ltd., an Indian electric two wheeler manufacturer, announced in April 2022 that it would be recalling 3,215 units of its Praise Pro Scooters.

This news came weeks after an Okinawa scooter burst into flames killing at least 2 people.

While initial speculation had blamed negligence in charging the vehicle as the cause of the fire, further investigation prompted the company to recall its product entirely in order to fix any battery related issues.

Amid a spate of e- two wheelers unpredictably catching fire, industry experts have pointed to rising temperatures and manufacturing defects as the likely culprits.

But this begs the question– are companies like Okinawa equipped to handle product recalls?

Yes– as long as they have Product Liability Insurance!

As it happens, product recalls can be awfully expensive. What with the cost of replacing and fixing defective parts, reimbursing customers, loss of sales– companies are in for losses ranging in the millions.

And that’s why they take Product Liability Insurance. Under this policy, businesses can opt for a Product Recall cover, which takes care of all financial losses sustained when a product is recalled. Any compensatory damages that become payable to customers as well as recall related expenses can all be reimbursed.

Okinawa’s decision marks the first ever voluntary recall by an Indian EV manufacturer. Pure EV and Ola electric also followed suit days later.

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Further Reading

What is Product Liability Insurance?