Why Should You Cancel Your RC After Scrapping Your Car?

Published On Feb 28, 2021 11:00 AM By InsuranceDekho

When a damaged vehicle is sold off, it goes to a scrap dealer who for recycling purpose breaks it down. In some situations, however, people fail to cancel the registration certificate (RC) of the car after selling it off. It is necessary to cancel RC, to avoid its misuse by fraudulent individuals.

Some car owners often prefer to sell a damaged car to a scrap dealer in cases of serious collisions, where the car has got totally damaged, without their car's Registration Certificate (RC). Fraudsters misuse records relating to such cars to give stolen cars a new identity by forging the engine number and chassis number.

It is the duty of the owner of a damaged car to have RC revoked, according to Section 55 of the Motor Vehicle Act 1988. For this reason, the owner must notify the Registry Authority within 14 days of the total loss of the car. Thereafter, the registering authority will cancel the RC.

How Can You Cancel Your Registration Certificate (RC)

In the case where your car insurance provider has written off your vehicle or declared a total loss, you must start the process of cancelling the car’s RC by the following process.

  1. Sell the car to any scrap dealer
  2. The dealer will give the chassis number that is cut off, which is proof the vehicle being scrapped
  3. Obtain an affidavit that mentions your vehicle has been scrapped
  4. Inform the Regional Transport Office (RTO) within your jurisdiction of the scrapped car
  5. Submit the mandatory documents to the RTO
  6. RTO will get clearance from the “local police” and will cancel the RC of your car
  7. They would forward the RC and the report to the “original RTO” where the vehicle was registered
  8. The original RTO will then cancel the RC
  9. The RTO will then give you the non-utilisation certificate for the car

Document Required to Cancel the RC

  1. RC of the scrapped vehicle
  2. Proof the vehicle being scrapped, that is, by cutting off the “chassis number”
  3. An affidavit stating the car is being scrapped (the only owner must give)
  4. Comprehensive car insurance policy or third-party liability insurance
  5. “Pollution Under Control” certificate

Things to Keep in Mind While Cancelling Car RC

  1. Inform the RTO and request for the cancellation of the RC of the damaged vehicle within fourteen days of the vehicle being scrapped.
  2. You should have a comprehensive insurance policy along with a third-party liability cover for the car to ensure a seamless RC cancellation process.
  3. Make sure your car insurance policy is renewed to file a claim in case of a total loss of your car.

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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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