Overhaul Protection for Truck

Engines (OPT)
Program Updates

June 2017
Agenda

• Update Goal
• What is OPT?
• Cat® Documents
• Engine Failures
• Modifications & Tampering
• Updated Worksheet for OPT
NOTE: This training does not replace the
• OPT Claims contents of referenced documentation.
• Pricing and Programs Each supporting document should be
opened and reviewed in it’s entire length.
• More Information Always reference latest version of
• Questions documentation at time of overhaul.

Cat Financial Insurance Services

What is the Goal?
• Review recent OPT
worksheet changes
• Reduce Warranty and OPT
claims
• Control OPT premiums
• Increase customer value

Note: screen prints outlined in black in

this presentation are from the revised
worksheet with an effective date of
June 1, 2017

Cat Financial Insurance Services

What is OPT?
Overhaul Protection for Truck Engines is an Extended Service Coverage (ESC) product
and is NOT Standard Factory Warranty. It is coverage for defects in material and
workmanship. Repairs performed under OPT are designed to return the engine to the pre
failure condition.
Dealers accurately selling and claiming are the key to the program’s success.
Coverage Overview
• Covered components:
– Replaced
– Repaired
– Inspected & Passed (items not passing are marked as an exception and not covered)
• Dealer workmanship:
– Original overhaul workmanship on covered components; covered
– Subsequent repair; may not be covered
– Non-covered components; not covered
• Coverage provides parts and labor reimbursement for covered failures
Cat Financial Insurance Services
Disclaimer

• Cat Financial Insurance Services (CFIS) representatives are not

technical experts on engine repair or failures
• Dealers needing technical assistance related to engine repair
procedures or guidelines should contact the Dealer Solution
Network (DSN)
• The DSN can recommend proper resolutions to failures and
technical questions; however, this does not guarantee payment
of repairs/claims will be covered by OPT
• Questions regarding OPT contracts, covered components, or
questionable failures should be facilitated by your RIM
• Only dealer overhauled engines are eligible for OPT, complete
new or Reman engines are not

Cat Financial Insurance Services 5

Overhaul Documents Referenced in the OPT Worksheet
The Truck Group continues to update and improve the rebuild
documentation to provide a better experience for the customer.
All documents can be found in the Service Information System.

Cat Financial Insurance Services

Documents - Updated Liner Projection Sheet - SEBF9008
• Required for OPT
– 3400(all), C-15, C15,C-16
• Flatness – NEW
• Liner Projection
– Must be recorded and uploaded in SIMSi
• Except for Reman Long Block or Reman Short
Blocks - Do Not Remove Cylinder Packs
– Failure to record and upload could shift
liability back to dealer
– Most commonly missed step in overhauls
– Recommend documenting anytime head
is off
– Reminder: New head bolts

Cat Financial Insurance Services

Cylinder Head And Spacer Plate Gasket Failures - SEBD6898

Proper Claiming is Important

What is the Part Causing Failure (PCF)?

• Is it really a head gasket failure?
• Most “gasket failures” are because of one of the following:
− Improper head bolt torque − Liner Projection variations

− Liner seat erosion/corrosion − Stretched/worn head bolts

− Surface finish compromised − Warped spacer plate

− Deck flatness − Unauthorized Modification

Cat Financial Insurance Services

Unauthorized Engine Modifications – REHS3809
Failures due to unauthorized modifications are not covered under Caterpillar warranty
or ESC. Authorized Cat dealers are responsible for completing all root cause failure
analysis and determining if warranty should be applied. REHS3809 is not intended to
be all inclusive, but will assist dealers with the investigation and the documentation.

− Pirated service tools − Aftertreatment removed or rendered inoperable

− Aftermarket HP devices − Block Erosion

− Repeat failures on specific parts − Confusing password history

− Excessive black smoke − Unexplained rerates and FLS/FTS changes

− Head Gasket Failures − ECM serial number history erratic

− ECM settings − Accelerated wear

− Turbo failures − Over boosting

− High boost − Signs of excessive heat

− High EGTs − Over fueling

Cat Financial Insurance Services

What is Tampering?
An unauthorized modification is defined as any change to a
vehicle chassis or the engine that is not to the
manufacturer's original specifications. REHS3809

• Installation of aftermarket device

• Tampering or removing an emission device
• Changing engine parameters beyond factory specification
(Examples - Pirated or Non-Caterpillar Engine Control Software)

The failures due to and contingent damage from unauthorized modifications are not covered under
Caterpillar warranty or ESC. Authorized Cat dealers are responsible for completing all root cause failure
analysis and determining if warranty should be applied. This Special Instruction is not intended to be all
inclusive, but will assist dealers with the investigation and the documentation. REHS3809

Cat Financial Insurance Services

 Unauthorized Engines Modifications – REHS3809

• Prior to repair
– Completely document complaint
– Validate ECM has not been tampered
• During repair
– Communicate any findings immediately
– Communicate financial impact of modifications
– Document any refused repairs
– Document any actions taken by dealer to resolve modification/tampering
• After repair
– Review “Customer Communication Regarding Unauthorized Modifications”

Dealers are required to only make repairs to keep an engine in

compliance with OEM Emission and As Shipped Consist

Cat Financial Insurance Services

 Unauthorized Engines Modifications – REHS3809

Unauthorized Modifications & Warranty

• Modifications generally cannot void Std. Factory Warranty, but may void ESC
• If a modification is related to the failure, the repair will not and should not be
covered by Caterpillar
• Claims reimbursement when paid in error for modifications leads to higher ESC
and parts pricing
• REHS3809 review at time of overhaul with customer is required -NEW
• Cancelation of ESC coverage possible following documentation of modification

Cat Financial Insurance Services

New OPT Overhaul Certification Worksheet LEHT0117-05

• New form posted in June 2017

• Must use new forms for
registrations on or after
Aug 1, 2017
• Late registrations with
LEHT0117-04 will NOT be
allowed on or after Aug 1, 2017
• Review registration information
in the OPT FAQ documentation
posted in June

Cat Financial Insurance Services

 Required Actions – New to the OPT Worksheet

• Liner projection worksheet

uploaded (if applicable)
• Engine serial number duplicate
coverage check
− Duplicate coverages cause issues down
road
− Is ESN being used in another truck?
• Post overhaul ECM download
− FLS/FTS, Trim File/Code
− Flash File validation
− Trim Codes
• Factory spec overhaul validation
− Review REHS3809 with customer
− Conforming engine overhauled

Cat Financial Insurance Services

 OPT Required Replacement Parts

• Required replacement
components
– Must be replaced in order to qualify
for coverage
• Mandatory Head Bolt
Replacement - New
– Added 3400(A,B,C,E) C15, C-15, &
C-16 head bolt
– PM Kits getting head bolts added
– Falls in line with SEBF9008

Cat Financial Insurance Services

 OPT Optional Components Replacement Parts

Optional replacement components

• Can be replaced at customers discretion
− It is highly recommended to replace all these parts
• If not replaced it’s not covered
− Can not be added later to OPT coverage
• VVA’s and Injectors must be done as a complete set
• If engine has 2 turbos both need to be replaced

Cat Financial Insurance Services

 OPT Block and ECM validation

ECM and Engine Block - NEW

• Failure to register legitimate serial number may void coverage
• Eliminate engines getting overhauled backwards in emissions
• Contact OEM for originally equipped engine
• Avoids registration on scrapped engines
• Avoids duplicate registrations
• If Using a Reman long or short block enter Part number in Serial Field

Cat Financial Insurance Services

 OPT Inspected Replacement Parts

Inspected components – Inspected, Replaced, and Exception

• Covered When:
− Passes Inspection per salvage & re-use guidelines
− Fails inspection then Replaced
− Must mark “Inspected” or “Replaced”
• Not Covered when:
− Fails inspection
− Damage is noted and not replaced
− Inspection was falsified
Cam inspected good – clear signs it’s an issue
Fails 2 weeks later

Components listed in this section are covered only if they pass inspection and are repaired or replaced during the overhaul. Parts not replaced must be within the specifications set
forth in the applicable service guide or applicable Caterpillar defined guideline for reusable parts. If a component fails the inspection and is not repaired or replaced it will not be covered under
this program. In this case the exception box should be marked. One time use components as identified by the applicable service guide must be replaced. If the component is replaced, all
parts of the component must be replaced. If all parts of the component are not replaced, it should be marked as an exception and will not be covered under OPT.

Cat Financial Insurance Services

 Commonly Missed OPT Issues – Claims

• Camshafts
− Replacement requires all new lifters/rollers/rockers
• Oil Cooler Housing
− OPT coverage does not cover internals of oil cooler
− If replaced suggest adding component plus
• Cam Bearings
− Only covered by 1st year of parts warranty
− Consider Component Plus on Cylinder Head
− Not covered under OPT/ESC or Workmanship

Cat Financial Insurance Services

 Block Repair vs Replace

Repaired Blocks – not eligible for OPT

• Welded, stitched, patched, epoxied,
cracked, etc…
Must be replaced or marked as an exception
• OPTs with a new or Reman, short, or
bare block are eligible for coverage.
Block must be validated to match the serial number
and engine consist

**At the time of the overhaul if the cylinder block is cracked or is or has been welded / repaired, the
block must be replaced or marked as an exception and is not covered under the program.**

Cat Financial Insurance Services

Compression in Cooling System

• Determine root cause of compression in cooling system per current

guidelines and training
– Establish component reusability per current documentation for specific engine
• OPT does not pay for betterment
– Will cover repair claims to bring back to operating condition immediately prior to
failure
– OPT does not pay to change liner projection for failure modes not related to liner
projection

Guidance Specific to Liner Projection

If Liner projection is in tolerance for new, Reman or inserted & milled blocks (.001”-
.006”) and meets current reusability - no betterment should be claimed
If Liner projection is below spec per SEBF9008 due to a claimable failure -
counterbore block and install shims to correct liner projection to current spec in
SEBF9008 (.0035”-006”)
If Liner projection is within tolerance (.0035”-006”) for a block with shims/counterbores (except for failed
cylinders) - repair only affected cylinders to (.0035”-.006”)

Cat Financial Insurance Services

 Pricing and Programs

• OPT Pricing
– OPT Pricing
• Deductibles - NEW
– Returning in 2017
– Per Failure – not per visit
– Make sure you check coverage
• GASD OPT Program
– $2500 off OPT Coverage
– Through 2017
– 2017 Truck Engine Parts Program

Cat Financial Insurance Services

Where to find Information on OPT

• Link from truck.cat.com

• Registration Contract
– Read it, good info
• Overhaul Certification
Worksheet
– Adapt the new one ASAP
• Pricing
– No change since Jan 1
• OPT FAQ
– Updated June
• dealer.cat.com

Cat Financial Insurance Services

Questions?

• Thank you for your time today and for helping keep Cat Truck
Engines on the road.
• Questions?

Cat Financial Insurance Services 24