What is Engine Protection Cover in Auto Insurance?

Mr. Rajesh Shah bought a comprehensive car insurance to get the complete coverage against the damages caused to his Maruti Suzuki Baleno. The engine repair due to water ingression costs him a huge amount of Rs 95,000 and the auto insurance cover he bought last year, did not pay for these engine repair expenses. Rajesh did not have to pay this huge engine repair cost from his pocket, if he had opted for ‘Engine Protection Add-on Cover’. The insurance company would pay the entire cost for engine repairs or replacement.

Significance of protecting the Engine

The engine of your vehicle is exposed to serious damages during the rainy season when the roads are usually waterlogged. If the water enters into the engine, it may cause serious damage to it. Any engine repair costs a huge sum of money, due to hefty material and labor charges. The gigantic cost of repair of the engine is all reimbursed if you are covered with the Engine Protection add-on cover.

Choosing this add-on coverage with a basic auto insurance policy will surely increase your premium amount, but it proves beneficial in the long run. With an engine protection cover, your vehicle is covered against any repair cost for damaged engine and its parts like crankshaft, piston, gearbox, pins, cylinder, etc. Your comprehensive auto insurance policy does not provide cover for your vehicle’s engine and it’s thus wise to opt for this add-on cover.

This auto insurance cover is highly advisable for people living/ working close to a flood-prone area, people who own high-end/luxurious cars whose engine repair cost is quite huge and for those who want to avoid all kinds of financial risks in respect of engine repair.

What Engine Protection Cover offers?

The engine protection cover protects you financially when your vehicle is encountered with the following situations:

  • Leakage of lubricating oil: Oil lubricates the engine, and it helps to cool the engine. Sometimes your vehicle develops an oil leak through which you could lose all your oil, which leads to engine damage. It’s wise to treat an oil leak as soon as possible. With engine protection cover, expenses against repair done due to the leakage of lubricating oil are covered.
  • Water ingression: If a car is restarted amidst water logging, it would lead to the engine damage. Water ingression is a major problem causing havoc with electrical systems in your vehicle and there is no engine that has the immunity against it. By choosing this add-on, you will get coverage for expenses against damages caused due to ingression of water in engine & its parts.
  • Gearbox damages: When it comes to hassles you face in your vehicle, gearbox problem is the known one. The lack of proper fluid level or impurities lead to gear shifting issues and if you continue ignoring this issue, it would damage the gearbox which is quite expensive to repair. Expenses incurred for repair done for damages due to gear box malfunction are covered.
  • Hydrostatic lock: Hydrostatic lock occurs when your vehicle’s engine comes in contact with water. Water prevents the engine from starting and make the vehicle into a static position. When you repeatedly try to start a wet engine, it will lead to the engine failure of your vehicle. The damages caused are covered under the engine protection cover.

The coverage available under this add-on cover may differ from one insurance company to the other and you are advised to read the fine print before opting for a policy.

What is not included under Engine Protection Cover?

An engine protection cover proves extremely beneficial, especially during monsoon. However, there are some conditions that are not covered under this policy.

  • Force start: The engine is designed to shut down when it is wet. However, if you try to force start your vehicle when it is submerged under the water, it can cause serious damages to the engine. It is considered as an intentional move of damaging the engine and thus not covered.
  • Consequential damages: Driving your car with a damaged bonnet, due to which the lubricating oil leaked into the engine causing it damaged. As the damage of the engine is not directly caused by the accident and thus it will not be covered.
  • Validity: This add-on cover does not offer cover for unlimited number of claims and you need to read the policy terms to ascertain the number of times your claims will be admissible.
  • Age: The engine protection add-on does not offer cover for cars more than 5 year old.

How much it costs?

The cost of a motor insurance policy with Engine Protection Cover is slightly higher than a basic motor insurance policy.

Insurance Company Basic Car Insurance Premium (INR) Engine Protection Cover Premium (INR) Total Premium (INR)
ICICI Lombard 19,245 941 20,186
HDFC ERGO 20,172 1,270 21,442
Bharti AXA General Insurance 17,793 1,002 18,795
Tata AIG 19,753 1,120 20,873

(Note: The premium illustration is calculated for a newly bought Maruti Suzuki Baleno 1.2 ALPHA)

Engine Protection Coverage available from different Insurers

Engine Protection Cover Coverage
ICICI Lombard Engine Protect Plus Expenses incurred in repair or replacement due to consequential damages to engine parts, differential parts and gear box parts
HDFC ERGO Engine and Gear Box Protector Covers consequential damages to the internal parts of the engine and gearbox of the insured vehicle
Bharti AXA Engine and Gearbox Cover Cover you if your car breaks down due to damage to the internal parts of the engine and gearbox.
Tata AIG Engine Secure Pay your repair and replacement expenses for the loss/damage to internal parts of the engine, gearbox, transmission or differential assembly
Bajaj Allianz Engine Protector Covers the consequential damage to the internal parts of the engine and gearbox of the Insured Vehicle arising out of water ingression/ leakage of lubricating oil

To the end

A car with a damaged engine is just a scrap. You are thus required to get the engine protection cover to avoid financial crises which may arise due to the cost of a repair/ replacement of the damaged engine. You are advised to call on the insurer’s customer executive or agent to get the complete details of the engine protection cover and then decide whether it makes sense to take this add-on cover.

Apart from engine protection cover, you can consider choosing a zero depreciation cover which will help you to get the entire claim amount against accidental damages for your vehicle.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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