RTO Rules For Scrapping Two-Wheelers and Cancellation of Bike RC

Read on to know the steps to cancel your bike registration certificate and the RTO rules for scrapping two-wheelers.
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3 min
28 December 2023

India has seen rapid growth in the automobile industry in the past few decades, and with it has come an increase in the number of cars and two-wheelers on the road. However, this has also led to an increase in pollution levels and a decrease in the quality of air we breathe. The government of India has been taking various initiatives to control pollution levels, and as part of it, the RTO (Regional Transport Office) has come up with new rules and regulations for scrapping vehicles. Here, we will focus on the RTO rules for scrapping two-wheelers.

What is the policy for scrapping two-wheelers in India?

The RTO's policy for scrapping two-wheelers in India is a systematic approach designed to ensure the responsible disposal of vehicles that have either reached the end of their lifespan or have suffered irreparable damage. As per the RTO scrap policy, vehicle owners are mandated to follow a structured procedure when opting to scrap their two-wheelers.

The process commences with the vehicle owner notifying the RTO about the intent to scrap. This notification must encompass critical details such as the vehicle's registration number, make, model, and the reasons for scrapping. Subsequently, the RTO issues a confirmation, providing the necessary instructions for the subsequent steps in the scrapping process.

What is the total loss of a bike?

Total loss, within the context of a two-wheeler, refers to a scenario where the vehicle has sustained such severe damage that the cost of repair far exceeds its actual value. This determination is often made by insurance companies, who conduct a meticulous assessment of the extent of the damage and compare it against the market value of the vehicle.

What is the impact if the bike gets totaled?

When a two-wheeler is declared a total loss, it carries significant implications for the owner. Primarily, the insurance company provides compensation based on the Insured Declared Value (IDV) of the vehicle. However, this compensation might not cover the entire cost of purchasing a new two-wheeler, necessitating financial preparedness on the part of the owner.

Beyond financial considerations, owning a totaled vehicle poses legal and logistical challenges. The RTO may require prompt initiation of the scrapping process to prevent the damaged vehicle from becoming a hazard on the road. Failure to comply with RTO rules can result in fines and legal consequences.

Also read: Parivahan Sewa

RTO rules for scrapping two-wheelers

The RTO rules for scrapping two-wheelers are paramount to ensuring a seamless and responsible transition from active use to disposal. Vehicle owners must adhere to these regulations to avoid legal repercussions and contribute to a more efficient and environmentally conscious vehicular landscape.

Compliance with RTO rules involves not only notifying the authorities about the intent to scrap but also actively participating in the prescribed procedures. Owners must furnish accurate information and cooperate with the RTO in every step of the scrapping process. Additionally, the RTO may have specific guidelines regarding the disposal of the scrapped vehicle, often requiring proof of disposal from an authorised scrap yard.

Cancelling bike registration certificate after scrapping

It is essential to cancel the bike registration certificate after it has been scrapped or declared as a total loss. Cancelling the registration certificate ensures that the vehicle is not being used on the roads anymore and prevents any legal and financial liabilities that may arise due to the misuse of the vehicle. Cancelling your bike registration also helps the government to update its vehicle records and reflect the correct ownership details and the transaction made.

Why should you cancel your bike registration?

Cancelling the registration certificate of a scrapped two-wheeler is a crucial step in the post-scrapping process. It serves multiple purposes, the foremost being legal compliance. By cancelling the registration, the owner ensures that they are no longer held liable for the vehicle's actions or misuse.

Furthermore, cancelling the registration contributes to maintaining accurate records within the RTO system. It prevents any future confusion regarding the status of a scrapped two-wheeler, and it is an essential step towards responsible vehicle ownership.

How to cancel your bike's registration certificate?

Given below are the steps to cancel your bike’s registration certificate:

  • Step 1: Verify with your two-wheeler insurance provider to determine if the bike qualifies as a total loss.
  • Step 2: Notify the RTO in your state about the total loss within two weeks or 14 days of the total loss declaration.
  • Step 3: Contact an RTO-registered scrap vendor and engage in negotiations for the pricing of your bike's components.
  • Step 4: Secure an affidavit or scrap certificate signed by the scrap vendor, confirming the scrapping of your bike.
  • Step 5: The RTO will obtain police clearance to authenticate the accident details that led to your bike's damage.
  • Step 6: The RTO will issue a certificate of non-utilisation.
  • Step 7: Upon receiving the certificate of non-utilisation, be aware that your bike's registration will no longer be valid.

The RTO rules for scrapping two-wheelers are a significant step towards reducing pollution levels and promoting cleaner modes of transport. The policy people to switch to newer and eco-friendly vehicles.

Cancelling your bike registration is essential, as it prevents any legal and financial liabilities that may arise due to the misuse of the vehicle and ensures that the government records are updated. It is crucial to follow the RTO procedure for scrapping the vehicle properly, and this small step can go a long way in promoting a cleaner and safer environment.

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