Engine Protection Cover in Car Insurance

An engine protection cover keeps the car insurance policyholder financially protected from the cost of repairs of the engine or its components which is the most expensive part of the car.

Aditya purchased a brand-new car just a few months ago and his engine is giving him a lot of trouble. This has been the case since the day he drove through the flooded streets of Bangalore. On consulting his mechanic, he was told that there has been water ingress in his engine and he needs to repair the engine at the earliest. 

Aditya is in a fix as the only insurance cover that he has is third-party car insurance and that will not cover the repair costs at all and having shelled out so much for his new car, he does not have a lot of savings at his disposal. And, this is where the Engine/Gearbox Protection Cover comes to the rescue. If you have your own-damage car insurance or comprehensive car insurance policy then the repair/replacement cost of the damaged engine will be compensated by the insurance company.  

Also read - 

• NCB Protection Cover in Car Insurance
• Return to Invoice (RTI) Cover in Car Insurance
• Roadside Assistance Cover in Car Insurance

Features & Benefits of Engine Protection Cover

• 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.
• This add-on is of value to both private and commercial vehicle owners.
• Those policyholders who have a comprehensive policy cover or own damage insurance cover can purchase it. It is not available for a third-party liability insurance policy.
• This add-on need not necessarily be purchased at the time of purchase of the original policy.
• Only the registered owner of the vehicle can purchase this add-on.

What is Covered Under Engine Protection Cover?

• Repairs or replacement cost incurred due to damages to the vehicle’s undercarriage is covered.
• Repairs or replacement cost incurred due to damages to water ingression is covered, including the damages of a hydrostatic lock.
• Repairs or replacement cost incurred due to damages to engine components, such as pistons, is covered under the policy.
• Repairs or replacement cost incurred due to damages due to leakage of oil in the engine is covered.
• The cost of consumables and labour costs for the repair of the engine and its components will be covered by the insurer.
• Only 2 claims can be made in one policy year.

What is not Covered Under Engine Protection Cover?

Standard exclusions are as follows –

• No claims can be made if the car was driven under the influence of alcohol or other intoxicating substances.
• No claims can be made if the car was driven by an individual who does not have a valid driver’s license.
• No claims will be entertained if there was contributory negligence on the part of the policyholder or if it was a voluntary act that caused the damage.
• No claim can be made for damages caused due to the depreciation of the automobile.
• No claim can be made for damages caused due to uninsured peril.

Other Exclusions Under Such a Policy are as Follows –

• Damages are caused when there is a forceful start of the engine even when the car is submerged in water.
• Damage was caused due to illegal racing.
• Cars which are older than 5 years old cannot avail this cover.
• Any claims which are under a recall scheme or under the car manufacturer’s warranty period are not covered.
• Damages caused are not a direct consequence of the accident. For instance, driving a car with a damaged bonnet, resulting in a leak of the lubricating oil into the engine.

Who Should Buy an Engine/Gearbox Protection Cover?

Experts advise that the following individuals/ car owners must consider purchasing this additional cover –

• If you live in a flood-prone or heavy rainfall area or frequently visit such an area.
• If you own a new and luxury car.
• f you are an individual who wishes to provide a higher degree of protection to your car and not leave any risks uncovered.

Also read - 

• Does Your Car Need The Engine Protection Add-on Cover?
• Engine Protection Cover Benefits in Car Insurance
• Protect Your Car's Heart with an Engine Protection Cover