A standard comprehensive motor insurance policy in India covers accidental damages, but it often excludes damages caused directly to the engine due to oil leaks, hydrostatic lock, or water ingression.
This is where the engine protection add-on comes in. In 2025, with rising repair costs, this add-on has become essential for many car owners.
What Is Engine Protection Cover?
The engine protection add-on covers repair or replacement costs for:
- Damage due to water ingression during floods.
- Hydrostatic lock (engine seizure when starting after water exposure).
- Lubricant leakage causing engine failure.
- Replacement of engine parts like pistons, rods, crankshaft, etc.
Who Should Buy Engine Protection Add-On?
- New Car Owners
- Modern engines are complex and expensive. Repairs can cost ₹1–2 lakh for premium cars.
- Flood-Prone City Residents
- If you live in cities like Mumbai, Chennai, or Kolkata, where monsoon flooding is common, this cover is critical.
- Luxury & High-End Car Owners
- Premium vehicles have higher repair costs—engine cover protects against financial shocks.
- People Who Keep Cars Long-Term
- Owners who plan to keep their cars for 7–10 years benefit most, as engine wear & tear risks rise.
Cost of Engine Protection Add-On in 2025
- Premium typically 2–5% of OD (Own Damage) premium.
- Example: If OD premium = ₹20,000, engine cover may cost ₹500–₹1,000 annually.
- Affordable compared to potential ₹1.5 lakh+ engine repair bills.
Case Study: Anil’s SUV in Mumbai
Anil’s SUV was submerged in water during Mumbai’s 2025 floods. The engine suffered hydrostatic lock, repair cost ₹1.3 lakh. Luckily, Anil had an engine protection add-on, and the insurer paid the full repair bill.
Lesson: One small add-on saved him over a lakh rupees.
IRDAI Guidelines for 2025
- Add-ons must be clearly explained to policyholders.
- Claim settlement for engine cover must be processed within 7–10 days.
- Insurers must offer engine protection as an optional add-on for both cars and two-wheelers.
Why This Matters
In 2025, vehicle owners are dealing with rising fuel prices, floods, and higher repair costs. An engine protection add-on is not just a luxury—it’s a practical safeguard.
👉 Next, read: Why EV Insurance Costs More in India: Battery & Repair Factors
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