RTO Rules for Car Scrapping and Deregistration in India

If your car has reached the end of its lifespan, understanding the RTO rules for car scrapping and deregistration is crucial. With the Vehicle Scrappage Policy in place, the government aims to promote the eco-friendly disposal of old vehicles and encourage owners to upgrade to safer, fuel-efficient models. This guide covers the RTO rules for scrapping a vehicle, the deregistration process, and how to ensure smooth car insurance claims. Older vehicles pose risks not just to their owners but also to the environment. Scrapping outdated cars in compliance with RTO rules ensures responsible disposal while taking advantage of the government schemes. Additionally, keeping up with car insurance policy updates during the scrapping process can help avoid any unforeseen legal or financial issues.

The Vehicle Scrappage Policy is an initiative by the Indian government to remove unfit vehicles from the roads. This policy aims to reduce pollution and promote the use of vehicles with better safety and emission standards. Here’s what you need to know:

• According to rules, vehicles that are older than 15 years for petrol and 10 years for diesel may be classified as unfit.
• Mandatory tests and checks will determine if a vehicle is fit to be driven on the road.
• Owners receive incentives when scrapping an old vehicle and purchasing a new one.
• The Regional Transport Office (RTO) oversees the implementation of the Vehicle Scrappage Policy.
• If a vehicle fails the fitness test, it must be either scrapped or undergo expensive repairs to meet regulatory standards.
• Certain commercial vehicles may have a stricter scrapping timeline depending on their usage and category.

The Vehicle Scrappage Policy helps in phasing out inefficient vehicles, leading to a cleaner and safer transportation system. Government-approved scrapping centres provide a transparent system for vehicle disposal, ensuring compliance with RTO rules for car scrapping.

To legally scrap your vehicle, follow these RTO rules for car scrapping:

1. Obtain a No Objection Certificate (NOC):

Ensure that the car has no pending dues, such as road tax or challans. If the car has been under a loan, obtain an NOC from the financier as well.

2. Submit Documents to the regional transport office:

• Registration Certificate (RC)
• Identity proof of the owner
• Address proof
• Vehicle insurance policy (if applicable)
• Pollution Under Control (PUC) certificate

3. Hand Over the Car to an Authorised Scraper:

The government mandates scrapping at an authorised vehicle scrapping centre to prevent illegal resale of de-registered vehicles.

4. Certificate of Destruction (CoD):

After the vehicle is scrapped, the centre provides a Certificate of Destruction, which is required for deregistration.

5. Inform the RTO:

Notify the RTO about the scrapping and submit all relevant documents to initiate the deregistration process.

For a detailed version of the rules, you can refer to the RTO rules for scrapping a vehicle PDF from official sources.

After a vehicle is scrapped, the next process is deregistration. The deregistration of old vehicles follows these guidelines:

1. Certificate of Destruction (CoD):

Submit the CoD to the RTO where the vehicle was registered.

2. Apply for Deregistration:

Using Form 29 and Form 30, and an affidavit confirming the car has been scrapped.

3. RTO Verification:

A confirmation of the scrapping details will be noted from an authorised scrapper.

4. Confirmation of Deregistration:

The RTO will officially remove the vehicle from its records, ensuring no future liabilities.

5. Intimate Your Insurer:

If the vehicle was covered under an active car insurance policy, notify the insurance provider about the deregistration to claim any eligible refunds or benefits.

6. Claiming Insurance Benefits:

Some policies offer partial refunds if a vehicle is deregistered before the policy expiration date.

The deregistration of old vehicles prevents fraudulent use of scrapped cars, ensuring that they are not resold illegally.

The vehicle scrappage policy offers numerous benefits, including:

1. Environmental Protection

• Reduce carbon footprint by removing high-emission vehicles from the roads.
• Minimises pollution and promotes greener alternatives.

2. Incentives for Owners

• Weight, type of vehicle and other factors determine the value of a scrapped vehicle.
• Discounts are offered on new vehicles when an old vehicle is scrapped.
• Possible tax rebates on purchasing a new vehicle under the policy.

3. Improved Safety

• Encourages the adoption of vehicles with modern safety features.
• Reduces road accidents caused by faulty, outdated vehicles.

4. Contribution to the Economy

• Boosts automobile sales and manufacturing industries.
• Generates employment opportunities in the vehicle scrapping and recycling sectors.

5. Hassle-Free Car Insurance Claims

• With proper deregistration, insurance processes become smoother.
• Easier to claim car insurance policy benefits when transitioning to a new vehicle.

Scrapping an old vehicle isn’t just about getting rid of it, it’s about following proper RTO rules to avoid legal and financial complications. By adhering to the scrapping rules, vehicle owners can ensure a smooth transition while benefiting from the Vehicle Scrappage Policy. Additionally, choosing a reliable car insurance policy, like SBI General Insurance, ensures that you remain protected during this process. SBI General offers tailored policies to fit your needs, making the transition to a new vehicle hassle-free.