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Created on:

07 Jun 2024

Last Updated on:

03 Apr 2025

Understand the process of decommissioning your vehicle with our guide to RTO car scrapping rules. Ensure you follow the correct procedures for scrapping your car.

Decommissioning your vehicle: Understanding RTO rules for car scrapping

As a car owner in India, you must learn and understand the Vehicle Scrappage Policy. It states that commercial vehicles that are over 15 years old and private vehicles that are over 20 years old must undergo emission and fitness tests and shall be scrapped if they fail. This policy was introduced to reduce pollution, improve passenger and road safety, etc. In this article, you will find essential details on the procedure and RTO rules for scrapping a vehicle in India.

Procedure and RTO rules for scrapping a vehicle in India

The RTO-stated procedure and rules for scrapping a vehicle in India may sound complicated, but they are very easy to understand and follow. Here is the RTO-stated process of scrapping a vehicle in India:

  1. The vehicle owner needs to inform the RTO that the vehicle will be scrapped. Vehicle deregistration is also possible.

  2. The vehicle owner needs to contact an authorised scrap dealer, who can guarantee the safe disposal of the vehicle while protecting the environment.

  3. Bring your original documents to the scrap dealer, including your Aadhar Card, PAN card, RC, etc., as proof, along with their photocopies. The scrap dealer only needs to keep copies of the documents, not the original ones.

  4. The chassis number must be removed before the vehicle is sent for scrapping and recycling.

  5. The scrap dealer will examine the car and offer a quote for the scrapping cost based on the total weight. When the deal is finalised, the car will be dismantled, and its parts will be sorted according to their category, such as steel, iron, rubber, plastic, etc.

  6. The specific cost of vehicle parts and components, like tyres, batteries, CNG kits, etc., is a matter of personal negotiation at the car owner’s discretion.

  7. Ensure that your vehicle and all its parts have been properly scrapped so they can’t be reused in any illicit act. Take pictures of the parts before and after the scrapping. You can provide these pictures to the designated RTO to obtain the scrapping certificate for the vehicle.

Besides this, there are certain RTO rules for scrapping a vehicle that car owners must follow. This includes the following steps:

  1. A written statement must be submitted to notify the RTO about the vehicle to be discarded.

  2. Before the vehicle is to be scrapped, the owner of the four-wheeler must surrender the original registration certificate and the vehicle chassis number. The designated RTO will keep them as records.

  3. Besides vehicle scrap and deregistration requests, the car owner must also submit an affidavit declaring that the car is not associated with any pending legal proceedings, car insurance policy claims or loans.

  4. You will then need to obtain a certificate from the scrap dealer on the letterhead with the full address mentioned. You can submit the scrap images to the RTO to obtain the vehicle scrapping certificate at this stage.

  5. Once the RTO receives verification from NCRB and traffic police, they commence the car deregistration process and offer you a scrapping certificate for the vehicle upon clearance.

Conclusion

There are many benefits of the vehicle scrapping policy in India. It provides certain incentives to car owners, including rebates on road tax, vehicle purchases, etc. Replacing old cars with newer cars will boost the automobile industry, reduce pollution, improve road and passenger safety, etc.


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Team Zurich Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Zurich Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.

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