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Cancel scrapped bike registration certificate: step-by-step guide
Mar 29, 2023

Cancel Scrapped Bike Registration Certificate: Guide for Easy Cancellation

For many, a dream bike is the first thing they would buy when they have some money to spare. Bikes, apart from being affordable, are also easy to learn and maintain. When you buy your first bike, you must try to keep maintained in the best possible condition you can. However, unfortunate circumstances might arise where your bike is damaged beyond repair. In such situations, you might not have any other option other than scrapping it. In such situations, what happens to your bike’s registration certificate? And your bike insurance policy? Continue reading to learn more about it.

Situations where your bike might need to be scrapped

The heart of a bike is its engine which is a mechanical motor-operated component designed by man. There is always a degree of error to them which may cause problems. This problem can be related to the engine, gearbox, or other mechanisms. And since it is a manmade machine, it is not indestructible. Your bike could get damaged:
  1. In an accident with another vehicle.
  2. Because of fire caused due to faulty mechanisms.
  3. During attempted theft.
  4. Due to natural calamities such as floods and earthquakes.
  5. Due to manmade calamities such as riots and vandalism.
While some damages are repairable, not all of them are. If you were to renew bike insurance, and were to read the policy document, you will notice a clause in the policy document that read: If your bike gets damaged, and the repairing cost of the bike exceeds 75% of your bike’s IDV, the bike is declared as a total loss. This means your bike is no longer repairable and the cost of its repairs exceeds the salvage value. In the situations mentioned above where your bike is damaged beyond repair and declared as a total loss, what should you do? A practical solution is to take your bike to a scrap dealer. Those parts that are in a good condition would be bought by the dealer. The remaining parts of the bike along with its body are torn apart by the dealer who may choose to recycle it.

Cancelling your bike’s registration

Even though your bike has been declared as a total loss and you have scrapped your bike, this does not cancel your bike’s registration certificate with the registering authority. You are required to inform the RTO about this and initiate the process of your bike’s registration certificate cancellation. Here are the steps:
  1. Once you have scrapped your bike, get the chassis number from your dealer. Opt for a recognised and certified scrap dealer.
  2. Get an affidavit to prove that you have scrapped your bike.
  3. Inform the RTO where your bike was registered about the bike being scrapped.
  4. Provide the documents to the RTO to back your claim.
  5. The RTO will verify the documents provided by you. They will also get a police clearance certificate.
  6. Once this is done, your bike’s RC will be cancelled, and the RTO will give you a non-utilisation certificate for your vehicle.
You can visit your nearest RTO as well and initiate this process. They will forward the file to the RTO where you had your bike registered. 

Documents required for the cancellation

You are required to provide the following documents to have your bike’s registration certificate cancelled:
  1. The original RC of your bike.
  2. The cut-out part containing your bike’s chassis number.
  3. An affidavit which mentions your bike’s scrapping.
  4. Your bike insurance policy.
  5. Your bike’s PUC certificate. 

What happens to the insurance policy?

When your bike gets damaged in an accident, you would file a claim. During the inspection, if the repair cost of your bike is 75% or more than your bike’s insured declared value, your insurer will declare it as a total loss. After your bike has been declared as a total loss, your insurer will pay-out the IDV as compensation. Either your insurer might cancel the insurance policy automatically after this or you might need to inform them after you have scrapped your bike and cancelled its RC. Discuss this with your insurer in detail. * 

Things to keep in mind

  1. It is mandatory as per Section 55 of the Motor Vehicles Act of 1988 to cancel your bike’s registration certificate.
  2. If your bike has been declared as a total loss, you need to inform the RTO about it.
  3. Ensure that you get the part containing your bike’s chassis number from your scrap dealer.
  4. Make sure your policy is operational. 

Conclusion

Getting your vehicle scrapped and cancelling its registration might help you avoid legal hassles that could arise with its misuse. If your bike is still in a good condition, buy insurance to get proper financial compensation after an accident. Before you purchase the policy, you can use a bike insurance calculator to get quotes based on your requirement. * Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.  

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