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How to Cancel Your Bike Registration Certificate After Scrapping?

  • Author :
  • TATA AIG Team
  • Published on :
  • 26/05/2022

Bike enthusiasts must also accept the huge responsibility that comes with owning a motorcycle. Because bikes are not safe as compared to cars, motorcycle owners must wear protective gear to ensure safety during any unforeseen accident. In addition, there are two-wheeler insurance plans that can save your pockets from being punctured.

You may protect your motorcycle with two kinds of two-wheeler insurance packages: comprehensive insurance and third-party liability insurance. A comprehensive insurance policy offers coverage for own damages, third-party damages, natural calamities, etc., resulting in motorcycle damage.

However, when you have a terrible day and a natural calamity occurs, such as an unnatural disaster or flood, it either results in the complete loss of your motorcycle or partially damages your motorcycle.

As we have stated earlier, you can save quite a lot of money when investing in a good bike insurance plan. At Tata AIG, we provide a choice of different bike insurance policies, including a comprehensive bike insurance plan, a third-party bike insurance plan, and a standalone own damage cover. Furthermore, with the help of our online bike insurance calculator and options for online two-wheeler insurance, you can effortlessly search for the best rates and purchase a policy that best suits your needs from the comfort of your home or office.

Now, let’s go back to the central part of this article - how can you cancel your bike registration certificate after scrapping the bike. Continue reading to know more.

Total Bike Loss - What is It?

In insurance for two-wheeler plans, the total loss is the circumstance where the expense of repairing the motorcycle exceeds 75 per cent of the IDV or the bike insurance cost. The value that is stated is the most insured value that you may claim if you lose the bike loss or if it faces damage. It is a total loss if the insurer needs to pay you a sum exceeding the Insured Declared Value. Third-party liability doesn't apply to this.

According to the maximum claim amount as per the comprehensive bike insurance plan, the insurer needs to pay the Insured Declared Value for damage generated by any natural calamity, accident, or fire. If the total cost of repairing is over 100% of the Insured Declared Value, the motorcycle is declared a scrap bike or total loss. Then, the insured declared value is paid to you as a replacement for your bike.

What Should You Do If the Bike is Totaled?

If you consider your motorcycle a total loss, then the components that are remaining can be sold to any scrap dealer. The motorcycle pieces will be torn down, and the scrap shop owner will recycle them. You need to cancel your bike's Registration Certificate (RC) if you do this.

According to Indian Motor Vehicles Act, 1988 (Section 55), you must revoke the bike's Registration Certificate after you scrap your bike. The insurance company declares this as a complete bike loss if you do so. The motorcycle owner should notify the RTO within two weeks of scrapping your bike. The RTO then cancels the motorcycle's registration certificate after the two-wheeler scrap.

Bike Registration Certificate Cancellation: Importance

It is critical to deactivate the bike's Registration Certificate of your motorcycle in the event of catastrophic loss.

Here are a few examples:

  • Misuse of damaged motorcycle documents

Suppose a traffic accident or natural disaster destroys your motorcycle, and the bike insurance firm considers it as a total bike loss. In that case, it is imperative to deactivate your motorcycle's Registration Certificate. If you don't deactivate the Registration Certificate of the trashed bike, scammers and criminals may exploit the bike's documentation. They can utilise your trashed bike's documentation to provide a fresh identity to a bike (stolen) or one used in any unlawful activity.

  • Bike theft may be avoided

Criminals see it as a chance when you are selling your motorcycle to a local scrap dealer without deactivating the RC. When a burglar takes a motorcycle, they try to conceal it. They replace the bike (stolen) with your registration certificate, chassis number, and engine number and then change it with the stolen one.

However, if the registration certificate is cancelled, these activities would stop. As a leading insurance firm, we recommend selling your bike parts to RTO-registered scrap vendors to ensure peace of mind. Selling your bike parts to RTO-registered scrap vendors is essential.

How Can You Cancel Your Bike's Registration Certificate?

If your insurance carrier has considered your motorcycle a complete loss, you may start the process of cancelling your motorcycle's registration certificate. By following these steps outlined below, you can cancel your bike's registration certificate:

  • You should sell your motorcycle to an RTO-certified scrap vendor since they know all the RTO rules for scrapping two-wheelers.
  • After cutting the pieces, the vendor will supply you with the chassis number, which will document that your motorcycle has been destroyed.
  • Acquire an affidavit stating that your motorcycle has been scrapped.
  • You should inform the RTO of this.
  • You need to submit the documents to the Regional Transport Office.
  • The RTO will obtain the PS (police station) approval before cancelling the motorcycle and registration certificate.
  • The report will then be handed over to the original Regional Transport Office, where your motorcycle was initially registered.
  • That RTO will revoke the RC.
  • After all these, you will receive a non-utilisation certificate from the RTO for your motorcycle.

How to Scrap a Bike?

The following are the standard RTO rules for deregistration and bike scrapping:

  • You must first notify the registered RTO of the intention to scrap the bike.
  • You must relinquish your motorcycle's registration certificate and the chassis number taken out during the scrapping process. It'll be retained as a segment of the RTO's historical records.
  • The confirmation of the scrap merchant on letterhead with the address is also essential. At this point, images of your bike scrap may be sent.
  • You must also provide an affidavit with the deregistration and bike scrapping application. It will state that your motorcycle is not subject to any loans, insurance claims, or other legal proceedings. It'll also say that your bike has not been engaged in any thefts.

Now that you have the answer to how to scrap a bike let us go ahead.

Motorcycle Registration Certificate Cancellation: Documents Required

You need to furnish the documents mentioned below to the Regional Transport Office:

  • Two-wheeler scrap registration certificate
  • Removal of the destroyed motorcycle's registration number
  • Affidavit stating that your bike has been dismantled
  • Third-party and comprehensive bike insurance
  • Your damaged motorcycle's PUC certificate

A Few Essential Things to Keep in Mind

When you try to cancel your motorcycle's registration certificate, there are a few things you should keep in mind:

  • You need to search "bike scrap dealer near me" on your preferred browser to get the best sources.
  • Once you find the answer to a bike scrap dealer near me, within two weeks of bike scrapping, notify your RTO.
  • You should be aware of the vehicle scrap letter format in India since you need to pen down details about everything that has happened with your motorcycle.
  • To ensure a seamless cancellation procedure, ensure you've third-party responsibility and adequate insurance coverage.
  • Make sure you've updated your bike insurance policy to file a claim.

Conclusion

You must renew your bike insurance coverage before the expiration date to file a claim. Everything is dependent on the insurance coverage, which must be valid. We suggest you acquire your insurance online with Tata AIG since you can also renew your coverage online without any hassle. Also, remember that you need to deactivate the Registration Certificate after wrecking your motorcycle, or you may face legal problems in the future. Finally, make sure you follow all the RTO rules for scrapping two-wheelers.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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