Primer. Check before buying a used car

If buying a new car is expensive, most of us look for a second hand one. But while the used-car market has rapidly gained popularity, often, critical information of the car which may later cause you legal and mental stress is hidden or manipulated.

To help you avoid such hassles, here are some documents you should demand from the seller before closing the deal.

Safety cover Motor insurance is one of the most critical documents. First and foremost, get the insurance transferred to your name. This helps avoid any hassles during the claim process in case of an accident or damage. During the transfer process, ensure that the first owner of the car has paid premiums regularly and the mandated third-party insurance is covered. In India, a vehicle plying on the road is mandated by law to be covered under third-party motor insurance. Opting for comprehensive cover is voluntary. However, this cover will ensure that you do not have to pay hefty repair charges on damages — while you’re driving or due to natural calamities.

Also, check the expiry date of the policy and the history of claims made on the vehicle by the first owner. If the insurance has expired, the vehicle needs to be inspected and surveyed by an authorised insurance company surveyor.

Registration details

The Registration Certificate (RC) is the next document you should check. It is the identity of the vehicle, containing vital information that includes chassis and engine number. Ensure that this matches the actual engine number; if the vehicle is involved in a major mishap, there is the possibility of the engine being replaced. Look out also for information about the State under which the vehicle has been registered. If you reside in another State, it is imperative for you to register your vehicle in your home state.

Road tax is a one-time outgo which needs to be paid by the first owner of the car at the time of registration. In the absence of the receipt document for the tax payment, a huge penalty can be levied on you. The tax slabs vary from state to state. Ask for the road tax receipt from the first owner. The service manual book reflects the service history of the vehicle, recorded while taking the vehicle to an authorised service centre of the manufacturer.

Timely and regular service means that the vehicle is in good condition. It will also reveal if any major repairs had been undertaken on the vehicle.

The writer is Head, Customer Service - Motor, ICICI Lombard