Add-ons help one customise their car insurance policy to best suit their needs. One such add-on which is worth investing is the engine and electronic circuit protection cover which will augment benefits in the long run.
So, what is this engine and electronic circuit protection cover really? Scroll down to read more!
Who Should Buy an Engine and Electronic Circuit Protection Cover?
It is advisable to purchase an engine and electronic protection cover –
- If the individual has an expensive, luxury car
- If the individual is living in a flood-prone area or frequents it
- If the individual wants to avoid all financial risks associated with the car or not leave any risk uncovered.
This policy offers the following benefits which might persuade other car owners to purchase the same –
- It ensures the longevity of the car by protecting the most vital part of the car.
- It will lead to a painless claim settlement process.
- The labour costs and cost of consumables will be covered by the insurer.
- Additional safeguards during monsoon, flooding and natural calamities.
What does Such a Plan Cover?
An engine and electronic circuit cover keep the insured financially protected from the cost of repairs of the engine or its components which is the most expensive part of the car.
This cover provides compensation for losses caused to water ingression, leakage of lubricant oil or damage to gearbox, pistons, hydrostatic lock etc. It covers full replacement and repairs too.
The extra cost of opting for this add-on must be paid to the insurer and subsequently, a higher premium amount will be charged.
This add-on will cover –
- Damages to the vehicle’s undercarriage;
- Damages due to water ingression;
- Damages to engine components;
- Damages due to leakage of oil in the engine
What are the Exclusions?
The following standard exclusions will be present in the policy –
- Delay in claim intimation;
- Damages caused due to depreciation of the automobile;
- Damages due to uninsured peril;
- Damages caused when the car has been driven under the influence of alcohol;
- Damages caused when the car has been driven in the absence of a valid driver’s license;
- Damages caused are not a direct consequence of the accident. For instance, driving a car with a damaged bonnet, resulting in the leak of the lubricating oil into the engine;
- If the insurer is of the belief that the information provided in the application was inaccurate, false or fraudulent.
Some additional clauses applicable in specific are –
- Damage was caused due to illegal racing
- Not available for automobiles that are more than 5 years old
- Forceful start of the engine even when the car is submerged in water
- Any claims which are under a recall scheme or under the car manufacturer’s warranty period
Top Policies to Consider:
Bharti Axa Hydrostatic Lock Cover
This add-on specifically agrees to pay for losses arising out of the repair or replacement of engine parts due to hydrostatic lock and water ingression. The insured must be the First Registered Owner and the vehicle should not be more than 5 years from the date of start of cover.
The policy requires that the insured repairs the car in the authorised garages of the insurer and submit the invoice within 15 days from the date of loss. It specifically excludes consequential losses but not those losses which are a result of water damage.
HDFC Ergo Engine and Gearbox Protector
The insurer offers to pay for losses arising out of water ingression, leakage of lubricating oil due to accidental means. It will compensate for repairs to internal child parts of the engine such as piston, cranks shafts etc. as well as internal parts such as gears and shafts.
The compression tests, machining charges and the labour costs incurred will also be covered. The insurer refuses to indemnify in case the loss is covered under a recall campaign or a manufacturer’s warranty.
Royal Sundaram Engine (Aggravation) Protector Coverage
The insurer will compensate for the cost of repair or replacement of engine parts, gearbox parts, differential or transmission parts, and the parts of the power steering pump caused due to leakage of lubricating oil or coolant or water ingression.
Bajaj Allianz Engine Protector Cover
The policy will compensate for repairs to internal child parts of the engine, internal parts of the gearbox and labour charges incurred. The claims will be processed only after the insurer sends an expert technician for a spot survey to assess the nature and extent of damage caused.
Engine and Electronic Circuit Protection Cover protects the most expensive parts of the car at a reasonable price. It is an investment that will prevent a hole in one’s pocket and will safeguard the policyholder from financial losses.
Carefully consider and research more about the above-mentioned policies and others available in the insurance market before taking the final call.