Steps to Cancel the Registration Certificate of Your Scrapped Bike

Posted on: Mar 27, 2023 | 3 mins | Written by: HDFC ERGO Team

Steps to Cancel the Registration Certificate of Your Scrapped Bike

Picture this. It’s an empty stretch of road, you are listening to your favourite playlist, and you are cruising along some picturesque highway. Only a biker knows how it feels at such times. Riding a bike can help you explore places at your own pace and convenience. No wonder, then, India is one of the leading consumers of two-wheelers in the world. As a responsible biker, make sure that you buy a bike insurance policy before riding. Apart from this, as a bike owner, it is also wise to know about the procedure to cancel the registration certificate of your scrapped bike. There might be an unfortunate incident or event where you might have to put your two wheeler for scrappage.

To ensure that you can continue going on such trips, it is essential to maintain your bike. That means servicing it regularly, keeping it clean, lubricating the chain, and so on. A part of this maintenance also includes a bike insurance policy. The Motor Vehicles Act in India mandates all vehicles to have a valid policy on them always.

Should you fail to get a policy, you are exposed to a lot of financial risks. For starters, you are liable to pay hefty penalties to the traffic police department for riding without insurance. In the unfortunate event of an accident, you must pay for the damages out of your pocket. Buying a bike insurance policy will give you immunity against such occurrences.

What does total bike loss mean?

Insurance companies consider the IDV or insured declared value of the bike for determining the insurance premium. Simply put, it is the current market value of the bike. If a bike were to meet with an accident or is damaged due to natural calamity and the cost of repair is more than 75% of the IDV, it is a total loss. If the cost of repair is less than 75%, the insurer will recommend getting the bike repaired.

The IDV also happens to be the maximum compensation that a bike owner will receive in such cases. If a bike catches fire or is severely damaged due to an accident or natural calamity, the insurance provider will pay you the IDV. Should the cost of repairing the bike be 100% or even exceed the IDV, the bike is a total loss and scrap bike.

What to do if your bike is totalled?

If the cost of repairs is too high and it does not make any feasible sense, insurance providers will tag your bike as a total loss. In such an event, you can sell the parts that can be salvaged to a scrap dealer. Generally, the entire bike is torn down, and the parts which can be sold to the scrap dealer are sold. However, it is important to cancel your bike’s registration post this.

The Motor Vehicles Act of 1988 mentions that if a bike is scrapped, the owner must revoke the registration certificate of the bike. Also, you have a two-week time period in which you must inform the RTO about the scrapped bike. Once you inform the RTO about the bike, they will cancel the registration of the bike.

Why should you cancel the bike registration?

Whether you are scrapping old bikes or a bike that has met an accident, you must cancel the registration certificate of the bike. Here are some of the reasons why you must.

1. To avoid bike theft

When a bike owner sells a bike to a scrap dealer, a lot of criminals closely monitor it. If you do not cancel the registration certificate of the bike, bike thieves will try to use it. They usually conceal the details of the stolen bike. And once they gain details of your bike and if its registration is not cancelled, they will use the details to sell the stolen bike again. They use details such as chassis number, registration number, and engine number.

2. To avoid misuse of documents

If your bike is damaged beyond repair, you must cancel the registration of the bike at the earliest. Should you fail to cancel the registration, criminals and scammers can use your bike’s documentation to provide a fresh identity to a new bike or even for other unlawful activities.

Steps to cancel the registration certificate of your bike

If you are wondering how to cancel two wheeler registration online, the following steps will help you do that. It applies to either when you are scrapping old bikes or in case of total loss.

● Visit the official Parivahan website.

● Login to the portal using your credentials.

● Enter the registration number and chassis number of your bike.

● Click on the generate OTP option.

● You will receive an OTP on the registered mobile number.

● Select the RC surrender/suspension option from the Service Details.

● Fill out the details on the page and click on submit.

● Upload the necessary documents to the website.

● Provide your bike insurance details on the website.

● Pay the necessary fee on the website to complete the transaction.

The above steps on how to cancel two wheeler registration online, will help you to complete the cancellation process rather quickly.

Steps to scrap a bike

Here are some of the steps that you need to follow for scrapping old bikes.

1. Inform the RTO about your intention to scrap a bike.

2. You must then surrender the registration number of your bike along with its chassis number. However, the details of it will be maintained for future reference.

3. Get a confirmation from the scrap merchant on letterhead, along with a few pictures for evidence.

4. You must then create an affidavit with the application for scrapping and deregistration of your bike. The affidavit will state that there aren’t any existing loans, claims, or other legal liabilities.

Documents needed for cancelling your registration certificate:

For scrapping old bikes or bikes that have met with an accident, you will need to furnish the following to the RTO.

1. Scrap certificate from the scrap merchant.

2. Application to cancel the registration certificate of the scrapped bike.

3. An affidavit that states your bike has been scrapped.

4. Your bike insurance policy.

5. PUC of your bike.

Even though you are planning to scrap your bike, it is important to have a bike insurance policy. The lack of a policy will impact the entire process since it is a statutory requirement. You can opt for even the basic third party bike insurance as it will give you the much-needed legal clearance.

Conclusion

Certain unfortunate events can lead to the total loss of a bike. The definition of which you can find above. In such times, you can claim your comprehensive bike insurance to receive compensation from the insurance provider. However, you will not receive any sort of compensation if you have a third-party bike insurance policy. If you must scrap your bike, it is pertinent to cancel the registration certificate of your bike for safety purposes.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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