What is Engine Protection Cover In Car Insurance?

engine protection cover in car insurance
Engine Protection Cover

Engine protection cover is an add-on cover in a car insurance policy that you can take by paying an additional premium. It basically covers the consequential loss of your car engine. Your comprehensive policy is not sufficient to protect any consequential loss because it comes under the exclusion.

Now question is that does the damage to the engine covered by the basic comprehensive policy or not? Accidental damage to your car engine is covered in the basic comprehensive policy but not covered in its consequential loss.

For example, if you are going somewhere and you got stuck in a flood area. Your car engine stopped in the waterlogged area and you tried to start your car again and again to move it.

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Due to restarting the car its engine may get ceased. The situation of damage is called a hydrostatic lock. This situation is called the consequential loss of an engine. Because your engine was not damaged due to the flood however it was damaged due to starting the engine in a waterlogged condition.

Benefits of Engine Protection Cover

Engine protection Add-on to provide coverage against consequential loss which may occur due to leakage of lubricant oil and water ingression. It covers the engine, its parts, damage to the gearbox, etc.

Your insurance company may cover – Engine Parts, Differential parts, Gear Boxes, Etc. In monsoon season many roads are full of water and the engine may get some problems due to water. It is better to have an engine protection cover because you may not avoid this kind of situation.

Importance of Engine Protection Cover

The engine is a crucial and most expensive part of the car. Without the engine, it is like a human being without a brain. You can’t avoid monsoons and any flood-like situation on the roads. You can face a waterlogged situation anywhere in the rainy season.

If you get stuck in any waterlogged situation and the car gets stopped. It is in our nature to try to restart the car. Very rare people can avoid restarting the engine. Let’s have more understanding with the below assumed example. In this case, he didn’t have an engine add-on cover.

Case

Mr. Shailendra purchases a new car with a basic comprehensive insurance policy and after six months he went for a visit somewhere. He parked his car in a parking. When he came back after some time he saw that the area was full of flood due to heavy rain. His car was in the depth of the water. He tried to start the car in the waterlogged area and the engine got ceased.

He filled the claim of Rs. 100000 but the company rejected the claim. Why so? Because in the situation there was a consequential loss. Damage was not due to flood however it was due to starting the engine in the waterlogged area.

Now you see that if you don’t have engine protection cover then you can face big financial losses in some situations. This example is not conclusive in nature. The actual amount may differ. I have not considered other factors also so that it can be simple to understand.

How it is decided that the damage was due to the Consequential Situation?

Yes, of course, this kind of situation is a very complicated one. It is not easy to judge whether engine damage is due to flood or by starting the engine in flood. To establish the exact reason the insurance company, deploy experts in the automobile. They check the engine and finalize the reason. Without proper investigation by experts, it is really very tough to establish the cause of damage.

Who Should take Engine Protection Cover?

Commonly everyone should take engine protection cover for at least three years. However, there are some cases where engine protection cover required much more. The following are situations where you must have an engine protection cover.

  • New Car
  • Luxury car
  • Living in Flood Prone Area
  • Want Maximum Cover

As per my knowledge, the above is the most common situation where you should engine protection cover.

Prevention is Better than Cure

You can face natural calamities like floods or any waterlogged conditions at any time. I will advise you that please do not try to activate the ignition when stuck in any flood-like situation. Here ignition means that do not try to start the engine. There is so much possibility that water damage the engine of the car.

Engine protection cover is not so much costly so, you should add this to your insurance policy. However premium of engine cover may vary from company to company. There are many insurers like Kotak General, Future Generali, etc that are providing engine protection coverage.

Car Age Limit to Avail of Engine Protection Cover

Insurance companies usually provide this add for up to three years of the car. Some companies may be providing you with up to five years. You can take this cover at the time of purchasing a car insurance policy or at the time of renewal only.

Terms and Conditions may vary from insurance company to company. Please read all exclusions, terms, and conditions of your insurance policy. Always intimate the claim on time to your insurer.

Conclusion – Engine Protection Cover

This is a very important add-on in the car insurance policy and if you are buying a new car or doing a renewal of your car, you should consider it. There are multiple general insurance companies are operating in India. And you should compare the features and benefits of the product before finalization. So that you can try to get the best insurance policy. I hope you like this article. There are other articles on several topics available on this site, you can read some of them also. And if you like, you can share it also.

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