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Engine Protection Cover Benefits in Car Insurance

By Vikas Chandra Das
21 July 2022, 11:46 AM

Add-ons are ideal for covering all those financial losses that a standard insurance policy fails to cover. Though these additional covers might result in an increase in the premium amount, it will contribute to a larger benefit in the long run. This is especially useful if the cover that is being sought after is for the car engine – a part of your car that is easily susceptible to damage!

What is Engine Protection Cover?

An engine protection cover keeps the insured financially protected from the cost of repairs of the engine or its components. Note that the engine 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.

How does Engine Protection Cover Work?

While selecting the insurance policy for your vehicle, you must opt for the add-ons including the engine protection cover. The extra cost of opting for this add-on must be paid to the insurer and subsequently, a higher premium amount will be charged on a periodic basis. 

It can be purchased only by those policyholders who have a comprehensive policy cover or own damage insurance cover.

Who is this Cover Ideal for?

This cover is ideal for all those car owners who live in flood-prone areas or have expensive, new cars. It is also ideal for those who would not like to leave any risks uncovered. 

How to Buy an Engine Protection Cover?

  • This add-on needn’t necessarily be purchased at the time of buying the standard policy.
  • It can be purchased online on the car insurance company following the requisite procedure. The enhanced policy cover and its documents will be received in the form of an email.
  • Only the registered owner of the vehicle can purchase this policy.

Features, Benefits and Premium of a Standard Car Engine Protection Add-on Cover 

The main features are as follows – 

  • Damages to the vehicle’s undercarriage are covered.
  • Damages due to water ingression are covered, including the damages of a hydrostatic lock.
  • Damages to engine components, such as pistons, are covered under the policy.
  • Damages due to leakage of oil in the engine are covered.
  • Only a limited number of claims can be raised, which is mostly 2 claims for most insurance policies.

The benefits of this policy are –

  • Additional safeguards during monsoon, flooding, and natural calamities.
  • Useful in case the insured car is expensive or is a new car.
  • It will lead to a smooth, trouble-free claim settlement process.
  • The cost of consumables and labour costs for the repair of the engine and its components will be covered by the insurer.
  • It ensures the longevity of the car by protecting the most vital part of the car.

The premium charged for the policy is calculated in the following manner – 

The engine protection add-on comes with a slightly higher premium than a comprehensive insurance policy. This add-on is about 2% of the current market value of the car. This amount might vary, however, with the model and make of the car. 

For example, the current market value/Insured Declared Value (IDV) of a car is INR 3,00,000. The cost of the engine protection cover for this would be 2% of this value i.e. INR 6,000. This additional amount is to be paid to get the protection offered by this add-on.

Exclusions Under this Cover

The following standard exclusions will be present in the policy – 

  • Damages caused due to wear and tear of the car;
  • Damage to uninsured peril;
  • Delay in claim intimation;
  • Damages caused when the car has been driven under the influence of drugs or 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 – 

  • Forceful engine start - even when the car is submerged in water.
  • Available only for cars that are less than 5 years old.
  • Damage was caused due to illegal racing;
  • Any claims which are under a recall scheme or under the car manufacturer’s warranty period.


The car engine is the most integral and expensive part of the car. All repairs might come with a significant price label attached to them. An engine protection add-on cover is a convenient supplement to your car insurance at a reasonable price. An offer worth considering if you would prefer your car up and running after an unforeseen setback and not gathering dust in the garage!

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