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Cancel Your Bike Registration Certificate In Case Of Total Loss

Updated On Dec 29, 2021

Don't know what to do if your bike is involved in an accident? This article explains what to do if your bike is involved in an accident.

When the bike is completely ruined in the most serious incidents, the owners frequently sell the debris to scrap merchants without remembering to cancel their RC. In order to give stolen automobiles a new identity, fraudsters fake the chassis number and engine number on papers connected to such vehicles. According to Section 55 of the Motor Vehicle Act 1988, the owner of a damaged vehicle that has been deemed a Total Loss (TL) is liable for having the Certificate of Registration (RC) canceled. For this reason, the vehicle's owner must notify the registering authorities within 14 days after the vehicle's entire loss. Following then, the registering authorities will revoke the registration.

 Cancel Your Bike Registration Certificate In Case Of Total Loss

Cancel Your Bike Registration Certificate In Case Of Total Loss

In the event that your bike is completely lost, you should revoke your bike registration certificate. Here's how it works and why:

1. What Is Total Loss and How Does It Affect You?

A full loss of a bike under a bike insurance policy occurs when the cost of repairing the bike surpasses 75 percent of the insured declared value (IDV) or the bike's insured cost. The insured stated value is the maximum amount a bike insurance policyholder may claim from the insurance provider for damage or loss of the bike. As a result, it is considered a total loss if the insurance company is compelled to pay more than the IDV. The insurer will only pay the IDV for damage caused by a natural disaster, fire, or accident as the maximum amount of claim under the comprehensive vehicle insurance policy. The bike will be ruled a total loss if the cost of repairs exceeds 100% of the IDV. Your insurance will pay the total insured stated value as the claim amount for the replacement of your bike.

2. What Should You Do If You've Lost Everything?

The scrap merchant will break down and recycle the remaining parts of your bike. You'll have to switch off your bike's RC as well if you do so. According to Section 55 of the Motor Vehicle Act of 1988, it is the responsibility of the bike owner to cancel the registration certificate of the bike after destroying it when the insurer considers it a total loss. Within 14 days, the bike owner must report the whole loss to the Regional Transport Office. The RTO will subsequently revoke the motorcycle's registration. Your bike will be scrap metal, and the RC will be unregistered as a result. The RC will be canceled after the RTO obtains a clearance report from the police. The RTO will provide a non-use certificate for the bike within 4-5 weeks following the cancellation. The restrictions and cancellation fees will vary depending on the state.

3. Bike Documents That Have Been Damaged Are At Risk Of Being Misused

It's vital to cancel the RC for that bike if it's completely wrecked in a road accident or due to a natural disaster, and the insurance provider declares it a total loss. If the disassembled bike's RC isn't terminated, fraudsters and thieves may be able to utilize the bike's paperwork. They can use the papers from your junked bike to create a new identity for a stolen bike or one that has been involved in any illegal conduct.

4. To Reduce the Risk of a Threat, RC is being Canceled

Selling your bike to a trash dealer without canceling the registration certificate is viewed as an opportunity by criminals. When a bike is stolen, the thief attempts to conceal it as much as possible. They update the identity of the stolen bike with your RC, engine number, and chassis number, then replace it with the one they took. These activities would come to a halt if you canceled the RC.

Take Away

Last but not least, grasp the concept of "complete vehicle loss." Keep in mind that your automobile will only be regarded as a "total loss" if the repair expenses surpass 75% of the IDV when filing a total loss claim. This is the maximum amount an automobile insurance company can claim for any damages caused by an accident. This is to safeguard you from fraudulent actions involving your damaged vehicle components. Make sure you follow this procedure to the letter to avoid incurring criminal charges or other significant consequences.

Do read - Differentiating Bike Warranty & Bike Insurance

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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