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Cancel Your RC After Scrapping Car

  • Author :
  • TATA AIG Team
  • Published on :
  • 01/09/2022

Have you thought about purchasing your ideal car and using it to tour the world? The majority of us would like to purchase a car. In actuality, investing your hard-earned money in the car of your dreams is a significant achievement. But if you own a car, you must be familiar with all of its aspects as well as the laws and guidelines that apply to car ownership in India.

In circumstances of catastrophic crashes where the car has become completely wrecked, some car owners often decide to sell a damaged car to a scrap dealer without their car's registration certificate (RC). Fraudsters falsify the engine number and chassis number on stolen cars in order to give them a new identity. According to Section 55 of the Motor Vehicle Act of 1988, it is the responsibility of the owner of a damaged vehicle to have RC revoked. Because of this, the owner is required to inform the Registry Authority of the total loss of the vehicle within 14 days. The RC will thereafter be cancelled by the registering authority.

Every city and town in India has rough roads, therefore, you must drive your car very cautiously to avoid denting and damaging it. However, some cars are involved in accidents due to traffic conditions and other reasons, and even repairs are insufficient to restore them to their pre-accident state. However, never just hand your car to anyone or a mechanic if this ever happens to it, and you want to get rid of it. To prevent your car from being misused for any illicit activities, you can have it demolished.

In this blog, we will talk about why you must cancel the RC of your car before scrapping it. But before that, we must also tell you that you should have valid motor insurance in place if you own a car in India. And also, with Tata AIG, the process of car insurance renewal online for your new car is an absolutely straightforward process. With just a few steps online, you can get the insurance for car renewed for your new car.

Now, let’s find out why cancelling your RC is important after scrapping your old car.

Why Should You Cancel Your RC Before Scrapping Your Old Car?

A car that is severely damaged cannot be used, as we have already stated above. It can be extremely risky, even if you are only travelling small distances within the city. The safest course of action, therefore, is to have it scrapped. But you must have your RC deactivated though while you're doing this. This will assist you in preventing a situation in which your vehicle is being used fraudulently or, worse yet, for a heinous crime.

A Registration Certificate is irrevocable and does not alter when the ownership of a vehicle changes. Only if you apply for its transfer will it change. Additionally, once RC is terminated, the vehicle is no longer usable and can easily be trashed.

In accordance with Section 55 of the Motor Vehicles Act of 1988, the owner is obligated to revoke the vehicle's permanent registration number, even if the vehicle has sustained total damage. Additionally, you should be aware that you must wait 14 days until scrapping your car in accordance with RTO guidelines.

Documents Needed for Vehicle RC Cancellation Online

You will need the following documents in order to cancel your car’s RC:

  • The chassis number is removed, serving as evidence that the vehicle has been demolished;
  • A declaration that the car has been scrapped from the owner;
  • Insurance papers, RCs, PUCC, and several more documents are all related to your car.

Along with the above-listed documents, you would also need to pay the required fee for starting the vehicle RC cancellation online process. Depending on each RTO's requirements, the list of documents may change.

Steps to the Cancellation of RC of Vehicle

The processes for cancellation of RC of your vehicle are as follows:

  • Take a few pictures of your damaged vehicle as proof;
  • Obtain an affidavit verifying the scrapping of your vehicle;
  • Notify the RTO that you are scrapping your vehicle;
  • Send the RTO any necessary documentation;
  • The local police station will provide a clearance certificate to the RTO;
  • Your RC for your vehicle will be cancelled, and you will be notified about the same;
  • Finally, the RTO will revoke your car's registration certificate, and you will receive a non-utilisation certificate for the same.

Benefits of RC Cancellation of Your Car Before Scrapping it

Here are a few advantages of cancelling the RC of your damaged car before scrapping it –

  • Prevent the Theft of the Vehicle

Vehicle thieves have the opportunity to alter the identity of a stolen car by faking its engine and chassis number when you fail to cancel your car's RC. They become inspired to steal more cars as a result. However, by cancelling your car's RC, you can somewhat prohibit such behaviours.

  • Prevent the Misuse of Your Old Car by Impostors

If a car is completely wrecked, the owner cannot ever use it again since it is sold to a scrap dealer. In the event that the car's RC is not revoked after it is scrapped, thieves and fraudsters may use it to give a stolen vehicle a new identity and exploit it for illicit purposes.

  • Prevent Legal Consequences

As already stated above, it is the owner's responsibility to have the RC of their vehicle cancelled after it has been scrapped. If you don't, a fraudster may exploit the identity of your vehicle and drive it for illegal purposes. And consequently, you could soon face major legal issues.


Before you cancel car registration, you must notify the RTO within 14 days of having it scrapped. Additionally, you should purchase a comprehensive motor insurance plan with Tata AIG, which can guarantee a simple RC cancellation process for your vehicle in the event of a total loss. Last but not least, remember to renew your auto insurance coverage on time so that you can make a claim on it in the event that your car is totalled.

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