Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

Reasons To Cancel RC After Scrapping An Insured Car

Published On Apr 10, 2021 11:00 AM By InsuranceDekho

This article mentions the reasons behind cancelling the registration certificate of your car after scrapping. It begins with an introduction of why people send their cars to scrap and the need for cancelling their RCs and concludes by explaining the reasons in detail.

Cars are prized possessions and offer people luxury, comfort and convenience of moving. Buying a car also entails purchasing a car insurance policy to protect it against all possible damages that might be caused due to an accident. Sometimes, accidents can get fatal and your car might be totally damaged beyond repair. In such cases, the only option left is to send it to a garage for scrapping and recycling.

 This however comes with a catch. As per law in India, it is the responsibility of the car owner to cancel the Registration Certificate (RC) once they have scrapped your car to ensure that no one else can register their vehicle under another name. There are more compelling reasons for you to cancel the RC of your scrapped car, as we outline the same in the points below. 

Reasons To Cancel RC After Scrapping An Insured Car

Reasons To Cancel RC After Scrapping The Insured Car

The following reasons will help you understand why it is necessary to cancel the RC of your car after scrapping it -

  • Legal Mandate

As per Section 55 of the Motor Vehicles Act 1988, it is the sole responsibility of the car owner to get their RC cancelled in case their car has been totally damaged. You need to inform the registering authority within 14 days of complete damage or theft after which the document will be cancelled by the concerned authority. 

  • Prevent Misuse of Documents

The prime reason for cancelling the RC of your scrapped car is to prevent the misuse of your documents by frauds and criminals. Many people would use the existing documents of the scrapped car to register a new or stolen car and use it for illegal activities. This can lead to legal consequences for you and so cancelling the RC prevents any possibility of such activities. It ensures that no one misuses your identity or the information of your car for their own benefits. 

  • Prevent Theft

Once a car has been sold to a scrap dealer, many people would steal the car and register it under a new identity. Sometimes, the details of your car sent for scrapping may be used by the, such as a forged chassis number. However, this can be prevented if you cancel your RC immediately after selling your car to a scrap dealer. It stops the possibility of future theft and puts a stop to the vicious cycle of fraudsters. 

  • Confirm Non Utilization

As soon as the RC of your car is cancelled, it renders your car to be scrap and it is no longer registered with anyone. It is a legal process that is aimed towards reducing the sale of your car parts by scrap dealers and confirming the complete non utility of your car. You should remember that you can file a RC cancellation form only if the damage level is beyond 75%. 

Take Away

Hopefully, these reasons will help you to understand why it is necessary to cancel your RC for a car that has been sent for scrapping. Not only is it mandated by law, but it is also your duty as a responsible citizen to prevent corruption and frauds in society. Car insurance is an important aspect of the process where they write off your car in case of total damage but you are liable to receiving a maximum of three fourths of the IDV as your claim amount. Hence, you must remember to secure your car with a car insurance policy to gain the maximum financial support in case your car is damaged beyond repair. 

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.


Explore more before buying Car Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy # within 5 mins
    • More than 45 Lac happy customers
    • Claim Support available all 7 days of the week

    People Also Read



    Find the right car insurance for you

    Partner Car Insurance Companies

    Disclaimer: InsuranceDekho does not endorse, rate or recommend any particular insurance company or insurance plan.

    Calculate your Car IDV

    Find the right car insurance for you