Buying a car is like a dream come true for many. It provides them with a feeling of pride, luxury, and achievement. After all, a person spends a considerable chunk of his/her savings to buy a car and keep it in top condition. That is why every responsible car owner chooses to get financial security for his/her car with a comprehensive car insurance policy.
However, despite all the precautions you take for your car, you can never rule out the possibility of an unforeseen mishap such as fire, theft, road accident, etc. These incidents can either damage your car partially or can lead to its total loss, in which case you must mandatorily cancel your car’s Registration Certificate (RC).
Why Should You Cancel Your RC Before Scrapping Your Old Car?
In case of a total loss of a car, the insurance company pays the IDV to the car owner and sells the remains of the car to a scrap dealer. The scrap dealer then breaks down the remains of the car into small pieces and uses them for the purpose of recycling. After the car is scrapped, the car owner needs to get the registration certificate of his/her car cancelled.
As per Section 55 of the Motor Vehicles Act of 1988, it is the responsibility of the car owner to cancel the RC of his/her car after scrapping it. He/she needs to inform the RTO about the scrapping of the car within 14 days to get its RC cancelled.
Documents Needed for Vehicle RC Cancellation Online
The following documents are needed for the cancellation of vehicle RC online-
- A declaration from the owner stating that the car is being demolished
- Car insurance policy documents
In addition to these documents, you must have the payment receipt for the processing fee for RC cancellation. The fee amount and additional documents can differ from one RTO to another; thus, consulting the RTO officials at the beginning of the formalities is advisable.
Steps to the Cancellation of RC of Vehicle
Below are the steps by 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
Benefits of RC Cancellation of Your Car Before Scrapping It
Below are the reasons why it is beneficial to cancel your car’s RC before scrapping it-
Prevent its misuse by fraudsters
In case of a 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.
FAQs
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What is total loss of a car?
As per motor insurance terms, total loss of a car refers to a situation where it gets damaged to such an extent that it cannot be repaired again. Or, if the cost of repairing a car is more than its Insured Declared Value (IDV), the car is said to be in a state of total loss. In such cases, the insurance company pays the full IDV of the car to its owner and sells the car to a scrap dealer.
The total loss of a car can take place due to an unforeseen mishap, such as road accident, earthquake, flood, tsunami, fire, theft, etc.
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What is the registration certificate of a car?
The Registration Certificate or RC of a car is an official document that is provided to the car owner after its registration. A car’s RC basically states that it is registered with the Indian Government and is, hence, fit to be driven on roads. It contains the unique registration number of a car, its engine and chassis number, name of the car owner, and the expiry date of the RC.
You can get your car’s RC either from the Regional Transport Office (RTO) where you’ve registered your car or you can download it from the Government’s “Parivahan Seva” portal.