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How to Claim Car Insurance Engine Protection Cover

Many states in India are seeing heavy rainfall these days due to cyclones in the oceans. These rains are creating floods which in turn are damaging the properties and are resulting in the death of people across India.

Know about Car Insurance Engine Protection Cover

Due to rapid urbanization, there has been unprecedented growth of new colonies in the big cities. Some of these colonies are established on the banks of rivers or lakes which resulted in the submersion of these colonies in the water at times of even normal rainfall. Flood prone areas water when it enters the house or apartments damages the properties and causes huge losses to the families.

People owing vehicles such as Cars or Bikes face a huge loss caused by the floodwater. They need to shell out a heavy amount of money for the repairs. To safeguard their interests car insurance companies have launched an Engine protection add-on that can be taken while purchasing the policy.

What is Engine Protection Cover?

Engine protection in Car Insurance is an add-on. Having an engine protection (EP) add-on helps in getting your claim settled if only the engine of the car is damaged. Engine protection add-on covers the loss or damage to the engine, gearbox, and other engine parts of the car due to water ingression or oil leakage. These covers are offered by many insurance companies up to 7 years of age on paying an extra premium.

The motor insurance plan covers the accidental damages to the vehicle at the time of claim. As per the policy wordings, damage to the engine is covered only if the vehicle is damaged simultaneously.

In case of floods or engine lock which happens only to the engine, a basic insurance policy doesn’t cover the claims. Due to this Engine protection cover is added as an add-on.

This add-on covers the damage to the engine and gearbox due to Water Ingression at the time of floods and Hydrostatic lock.

During the rainy season, roads and houses are waterlogged. Driving vehicles in these situations can cause damage to the engine due to the above-mentioned reasons.

How does it work?

Engine protection cover is an add-on offered by insurance companies. It should be taken at the time of policy issuance and cannot be taken after the policy commences.

In the course of driving, if the insured faces any issue with the engine due to water ingression or leakage of oil which results in the damage of the engine, the insured car needs to file for a claim under the Engine protection cover for your car.

Why it should be taken?

  1. The engine is the costliest part of the vehicle
  2. The only damage to the Engine is not covered under the basic comprehensive policy
  3. More coverage at fewer premiums.

Features and benefits of Engine Protection Cover

TThe Engine Protection Cover is a regular comprehensive cover with special features and benefits. The insurance company will compensate up to the amount specified in the policy for expenses towards repairing or replacement of engine parts that are damaged.

Features and benefits of the Car Engine Protection Add-on are

Damage because leakage of lubricating oil inside of the engine.

Damage due to water enters the engine of the car.

Loss or damages of engine parts of a car such as a gearbox, pistons, connecting rods, etc., and other consequential damages are also covered under the Engine Protection Cover. The replacement costs and repair costs are included in this cover.

Types of Car Insurance Policy

A car insurance policy has two main types, namely: - Third-party car insurance and Comprehensive Car insurance. Let us understand each of them to enable us to select the best type of car insurance. These types of car insurance can be opted both for the new car as well as the old car.

1. Third Party Car insurance:

Third party car insurance or “Liability only” car insurance or “Act only” car insurance is the compulsory car insurance in India as per the Motor Vehicles Act. Any party other than the insurance company and the customer of the car is referred to as a third party, hence the name third party car insurance.

The death, disability, and damage to goods or property of the third party are covered under the TP policy of the car insurance. The claim amount in case of Third-party claims would be decided by the honorable courts and direct the insurance companies to settle the claim amount to the third parties on behalf of the car owner. This is the basic type of car insurance policy available in India and is compulsory to be taken for any car to ply in public places.

The premium to be paid under the Third-party type of insurance policy is decided by the Governing body for insurance, IRDA known as the Insurance Regulatory and Development Authority of India. The car insurance rates in the Third-party premium type of car insurance are subject to be revised each year depending on the loss ratio and other factors which are decided by the IRDA.

2. Comprehensive Insurance:

The other type of car insurance policy in India is the “Comprehensive Car Insurance” which includes the Own damage section as well as the Third-party section. The Own damage section covers any loss or repairs to the car owned by the insured due to an insured peril.

The premium to be paid by the customer under the own damage section is decided by the insurance company, unlike the third party insurance premium which is decided by the IRDA. The own-damage premium rates are given by the IRDA and the insurance companies can decide the premium within those rates.

Insurance companies take utmost care while deciding the premium rates for own damage type of car insurance such that too high price may result in failure of the product and too less price might impact the profits of the insurance company.

3. Comprehensive with add-ons:

The other type of car insurance in India is comprehensive car insurance with add-ons such as Zero Depreciation, Consumables, Engine protection, etc. The most common type of add-on opted by the car insurance customer is the Zero Depreciation cover along with the comprehensive car insurance policy.

The “Zero depreciation” car insurance policy is also known as “Nil Depreciation” or “Bumper to Bumper” car insurance in India. This type of car insurance in India can be termed as the total coverage for cars as the zero depreciation add-on enables the insurance companies to pay the complete claim amount without factoring in depreciation. Bumper-to-bumper car insurance is an add-on or rider available under the own damage section of the car insurance policy.

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