Why Cancel RC after Scrapping my Car?
Published On Nov 07, 2020 12:00 PM By InsuranceDekho
In cases of total damage of a car, the owner is expected to cancel its RC. Ever wondered why? In this article, we’ll tell you everything you need to know about it.
When a car meets with an accident the damage is at times too extensive to salvage it by repairing. Instead, the damaged car is often sold off as remains to a scrap dealer who breaks down the car for recycling purposes. However, in such cases, people forget to cancel the registration number of the car. Cancelling the number is crucial, to prevent its misuse by fraudulent people. The registration number is a unique code given to every car for identification purposes, hence, in the hands of fraudsters, it can be forged and used on stolen vehicles to escape surveillance. This article will explain everything you need to know to cancel your registration number:
Why Is It Important to Cancel RC in Case of Total Damage of Car?
As mentioned earlier, a car that is no longer usable due to damage is often sold as scrap. However, if one forgets to cancel its RC the same number can be used by others for fraudulent purposes. According to Section 55 of the Motor Vehicles Act of 1988 the responsibility of cancelling the permanent registration number of the car in cases of total damage is the owner. Moreover, this should ideally be done 14 days of the scrapping of the car. This will allow the registration to keep track of the actual cars in use. The RC is permanent, it does not change with a change of ownership. Hence, cancelling it is equivalent to a car being considered scrap and not in use by anyone.
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What are the Documents Required for Cancellation of RC?
The following are the documents you will require to cancel your RC:
- Proof of car being scrapped: chassis number cut out.
- An affidavit from the car owner of the car being scrapped.
- All Documents related to the car such as RC, Insurance Documents, PuC etc.
The fee for initiating this procedure as well as a few documents vary according to the requirements of each RTO.
How to Cancel Car RC?
The following is the procedure to cancel the RC:
Step 1: When you scrap your car, the dealer will provide you with the chassis number that is cut out from the car as proof.
Step 2: The owner of the vehicle must write an affidavit that states that the car has been scrapped.
Step 3:You must provide all documentation related to your vehicle to the RTO.
Step 4:The RTO de-registers the car, however, you will not get a certificate for the same. In case you want documentation for it, you will need to file an RTI.
In the event of a mishap, cars are often damaged beyond repair. In such cases, they are sent off to scrap dealers for recycling. However, when you do this, every car owner is expected to cancel their RC with their respective RTO. This prevents the RC from being misused by fraudulent persons. Lastly, keep in mind that this process must ideally be initiated within 14 days since the car is scrapped.
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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.