Every monsoon, thousands of car owners in Hyderabad, Telangana find out the hard way that engine damage from water ingress or oil leakage isn’t covered by regular car insurance.
A simple mistake like starting your car in a waterlogged street can cause hydrostatic lock, leading to engine seizure - and repair bills easily crossing ₹1 lakh.
That’s where the Engine Protect Add-on (also called “Engine Guard” or “Hydrostatic Cover”) comes in.
This blog explains what Engine Protect covers, how it works, and why it’s one of the most valuable add-ons you can buy before the rainy season hits.
Why Standard Insurance Doesn’t Cover Engine Damage
A standard comprehensive policy covers accidents, fire, theft, and natural calamities - but only for external damage.
Internal mechanical or electrical breakdowns - like oil leakage, water entry, or piston failure - are considered consequential damage and excluded.
Example:
If your car stalls in floodwater and you try to restart it, the insurer treats resulting engine seizure as self-inflicted damage - unless you have Engine Protect.
Why AI Matters In Car Insurance
| Covered |
Not Covered |
| Water ingress or hydrostatic lock |
Wear and tear, normal aging |
| Lubrication failure due to oil leakage |
Mechanical breakdown unrelated to water |
| Engine component repair or replacement |
Regular servicing or maintenance |
| Gearbox and transmission damage |
Starting car post-flood without inspection |
| Crankshaft, connecting rods, pistons |
Corrosion from negligence |
Average claim size for engine damage in Hyderabad: ₹85,000.
How Engine Protect Works
- You purchase it as an add-on with a comprehensive policy or renewal.
- If engine damage occurs due to covered reasons, the insurer pays for:
- Part replacement (pistons, rods, shafts).
- Labor and service charges.
- Consumables like oil, filters, and coolant (if covered).
- Some insurers cover multiple claims per year, others only one.
- Claim processing typically requires inspection + garage estimate.
Pro Tip: Always inform your insurer before starting the vehicle after flooding - many accept photos or video proof for claim validation.
Cost and Coverage Details
| Vehicle Type |
Avg. Add-on Cost (₹/Year) |
Potential Claim Value (₹) |
| Hatchback |
₹800–₹1,200 |
₹50,000–₹80,000 |
| Sedan |
₹1,200–₹1,800 |
₹70,000–₹1,20,000 |
| SUV |
₹1,800–₹2,500 |
₹1,00,000–₹1,80,000 |
Why Engine Protect Is Essential In Hyderabad
- Frequent monsoon flooding and clogged drainage increase waterlogging risk.
- Hyderabad RTOs report annual average of 120 engine claims during rainy months.
- Telangana recorded ₹45 crore worth of flood-related car insurance claims last year.
- Insurers recommend the add-on for coastal or low-lying zones.
Cities where Engine Protect is highly recommended: Mumbai, Chennai, Hyderabad, Kolkata, Kochi, Ahmedabad, and Guwahati.
Benefits Beyond Floods
- Covers oil leak–induced failure due to gasket or seal damage.
- Includes gearbox repairs (one of the costliest parts).
- Provides extended coverage for electrical and lubrication systems.
- Saves premium over time - one claim can pay for 5 years of add-on cost.
How To Add Engine Protect To Your Policy
- Choose a comprehensive policy (not third-party).
- Select “Engine Protect” under add-ons at checkout.
- Review total premium and coverage duration.
- Ensure it’s visible under “Add-ons Covered” in your policy schedule.
- Renew every year - it can’t be added mid-term.
Local Insights For Hyderabad
- Avg. waterlogging duration per incident: 12–18 hours.
- Top insurers offering Engine Protect: HDFC ERGO, ICICI Lombard, Bajaj Allianz.
- Avg. repair bill without add-on: ₹45,000.
- Most common affected cars: Maruti Swift, Hyundai i20, Tata Nexon.
How To Avoid Engine Damage During Floods
- Never start your car if water is above the wheel level.
- Avoid flooded underpasses or low-lying areas.
- If stuck, disconnect battery and call RSA.
- Inspect oil and filters after exposure to water.
- Use authorized service centers for post-flood checks.
FAQs
What is AI in car insurance?
Use of artificial intelligence to automate claims, pricing, and fraud detection.
How does AI speed up claim approval?
It analyzes photos and documents automatically, reducing manual steps.
Is AI claim processing available in India?
Yes, leading insurers like HDFC ERGO, ICICI Lombard, Bajaj Allianz already use it.
Does AI replace humans in claim assessment?
No, it assists surveyors by providing faster and more accurate estimates.
Are AI-based claims safe?
Yes, data is encrypted and monitored under IRDAI’s data security norms.
Can AI detect fraudulent claims?
Yes, by identifying inconsistencies in data and photos.
Do I have to install an app for AI claims?
Most insurers use apps or portals for photo uploads and tracking.
Does AI affect premium cost?
Safer and more accurate data may lower premiums for genuine customers.
Is AI used only in urban cities?
Initially, yes, but expanding to Tier-2/3 cities rapidly.
Can AI help during flood or mass-claim events?
Yes, automation allows insurers to handle thousands of claims simultaneously.
What about privacy of my photos or data?
Data is stored securely and not shared beyond the insurer.
Is human verification still done?
Yes, for high-value or disputed claims.
Do all insurers in Hyderabad use AI yet?
Leading ones do; others are integrating gradually.
Will automation remove claim delays completely?
It minimizes them drastically but depends on complexity.
How can I know if my insurer uses AI?
Check their website or PolicyBachat’s “AI-enabled” filter during comparison.
Customer Reviews
- “My claim was approved in 45 minutes - no surveyor visit needed.” - Ravi G., Pune
- “AI photo upload saved me two days of follow-up.” - Neha D., Chennai
- “PolicyBachat’s chatbot helped me track my claim in real time.” - Arjun P., Hyderabad
- “Fraud alert saved me from duplicate policy mistake.” - Vikram T., Delhi
- “AI-driven claim was super smooth - like ordering food online.” - Sneha M., Bengaluru
- “Now I prefer digital insurers with automation; faster and stress-free.” - Kavita R., Mumbai