Buying second-hand vehicle? Get motor insurance, make sure it has third-party liability at least

You can buy motor insurance for a second-hand vehicle and you definitely should at least buy a third-party liability cover, as it is mandatory as per law in India.

Buying second-hand vehicle? Get motor insurance, make sure it has third-party liability at least
Buy motor insurance for a second-hand vehicle and you definitely should at least buy a third-party liability cover, as it is mandatory as per law in India. Image Source: Reuters
By ZeeBiz WebTeam
Updated: Tue, Oct 02, 2018
10:00 am
ZeeBiz WebDesk
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My daughter is studying in Pune and I want to buy her a second hand scooter. Can I buy insurance for the scooter? Since it is old will we get insurance for it? - Ravi Kamat

You can buy motor insurance for a second-hand vehicle and you definitely should at least buy a third-party liability cover, as it is mandatory as per law in India. Apart from it being mandatory I strongly urge you to buy it to protect your financial interests. We have seen single Third Party (TP) Liability claims of Rs 15 crore, which without insurance would fall on an individual to pay.

I would advise you to buy a comprehensive motor insurance cover, which a combination of TP and Own Damage cover. For the own damage part, most insurers seek an inspection of the vehicle, which you can now do on your own using your smart phone and the insurers app, where the photos get uploaded and approved instantly. For insuring your second hand scooter, you need to produce the Registration Certificate if the same has been transferred in the name of the new owner or Form Number 29 and 30 to the insurance company to buy motor insurance.

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With these documents in place, you can either transfer the insurance policy of the previous owner to the new owner or buy a completely new motor insurance policy of your choice.

By: Tapan Singhel

(The writer is , MD & CEO, Bajaj Allianz General Insurance)

Source: DNA Money

Send your queries related to general insurance to personalfinance@dnaindia.net.