Below are the reasons why you must cancel your car’s RC after scrapping it
Prevent its misuse by fraudsters
In case of total loss of a car, it is sold to a scrap dealer and can never be used again by the owner. In case the RC of the car is not cancelled after it is scrapped, it can be used by criminals and fraudsters to give a new identity to a stolen vehicle and use it for illegal activities.
Prevent vehicle theft
When you fail to cancel your car’s RC, vehicle thieves get a chance to change the identity of a stolen vehicle by forging its engine and chassis number. As a result, they get motivated to steal more cars. However, such activities can be prevented to an extent by cancelling your car’s RC.
Avoid legal troubles
As mentioned above, it’s the responsibility of the car owner to get the RC of his/her car cancelled after its scrapping. In case you fail to do so, a fraudster can use your car’s identity for a car that’s used for criminal purposes. This may bring serious legal troubles for you in future.
Vehicle Scrappage Policy announced by the Government of India
Vehicle scrappage policy was one of the several measures announced in Union Budget 2021. Under this policy, personal vehicles would have to undergo a fitness test after 20 years, while commercial ones would need to take this test after 15 years.
In case a vehicle is found to be unfit to run on roads, the owner can choose to scrap it and receive incentives from the Government. The aim of the policy by the Government of India was to reduce air pollution in the country and increase fuel efficiency of cars.
In case your car qualifies for the vehicle scrappage policy of India, you can scrap your car and cancel its RC, like the case of total loss.
How to cancel your car’s RC?
Below are the steps in which you can cancel the RC of your car:
- Click photos of your scrapped car
- Get an affidavit stating that your car has been scrapped
- Inform the RTO about the scrapping of your car
- Submit all required documents to the RTO
- The RTO will obtain a clearance certificate from your local police station
- You will be informed about the cancellation of your car’s RC
- The RTO will cancel your car’s RC and you will be provided with a non-utilisation certificate for your car
The final word
You must inform the RTO within 14 days of scrapping your car to get its RC cancelled. Also, you should procure a comprehensive car insurance policy to ensure smooth RC cancellation procedure of your car in case of its total loss. Lastly, don’t forget to renew your car insurance policy on time to file a claim on it in case of total loss of your car.