Understanding Engine Cover in Vehicle Insurance with the Arrival of Monsoons
A Punchy Headline
Vehicle insurance in India is mandatory by law, and very few take insurance as seriously as they do while buying a vehicle. We all know the difference between Third Party and Comprehensive insurance, and eventually, we all have become familiar with the Add of Nil Depreciation. However, many other features beyond aforesaid mentioned have never been given due concentration by car owners. One such add-on which protects the vehicle against damage is caused by flooding or water logging. The cover is known as Engine Cover as it protects against water and any accidental damage to the engine other than negligence. The feature is vital with such uncertainties in climate, and the losses to the vehicle could be huge if the engine gets damaged due to the vehicle submerging in rainwater. Moreover, the feature also covers any damage to the engine due to the accident causing leakage of oil, which further may result in seizing the engine.
The following damages with conditions are covered under the add-on:
Internal parts of the engine
Gear Box, Transmission, or Differential Assembly
Provided loss or damage is due to ingress of water in the engine or leakage of lubricating oil from engine / respective assembly.
It also pays for the lubricating oils/consumables used in the respective assembly i.e. material, such as engine oil, gearbox oil etc. but excluding fuel.
Special conditions (Claim under this feature will be admissible only if):
Visible evidence of accidental damage to engine or respective assembly
There is evidence of vehicle being submerged or stopped in a water-logged area
Vehicle is transported / towed to garage within 2 (Two) days of water receding from the water logged area
Exclusions:
Loss or damage covered under manufacturer warranty; recall campaign or forming part of maintenance / preventive maintenance.
Any aggravation of loss or damage, including corrosion due to delay in intimation to us and / or to retrieve the vehicle from water logged area.
Ageing, depreciation, wear and tear.
It is an important feature required by all vehicles, specifically sedans, where the chances of getting stuck in water-logged areas are higher and can cause heavy losses. The cover is undoubtedly expensive, but all high-end cars shouldn’t avoid such cover as any damage to the engine can cause significant financial loss. Thus, it would be penny wise pound foolish to ignore a valid cover where the premium would be in thousands, but the claim could run in lakhs, especially in high-end imported cars.