Is it necessary to buy a car insurance policy for a used car?

A car insurance policy is legally necessary to have if you wish to drive a car, whether old or new, on Indian roads, as per the Motor Vehicles Act of 1988. There is a chance that the previous owner would already have an active policy. If you wish so, you can get the policy transferred to your name as the policy is attached to the car and not the driver. For the same, you will have to provide details and papers regarding your purchase of the used car. Do note that you will not be receiving the NCB or the No Claim Bonus with the transfer as the bonus is attached to the driver and not the car. 

You can also buy a new car insurance policy directly in your name.