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Vehicle Completely Damaged? Ensure the RC is Cancelled within 14 Days

By Admin
28 June 2022, 11:51 AM

The fact that your beloved possession has been damaged beyond repair has left you devastated. You have been left with no option but to do away with your car, besides making a car insurance claim for a total loss from your insurer.

There is one additional thing that you must do at all costs in such circumstances - you should cancel the Registration Certificate within a period of 14 days from the date of the said accident.

Why is It Important to Cancel the RC of a Completely Damaged Car?

A completely damaged car or total loss is defined as a situation in which the cost of repairs of the car is more than 75% of the insured cost of the car/ the Insured Declared Value (IDV).

The Insurance Regulatory and Development Authority of India has issued directions requiring all car owners who have suffered a total loss to their cars in an accident to cancel the RC within a period of 14 days. Section 55 of the Motor Vehicles Act, 1988 also mandates the same.

This is to prevent the misuse of vehicle-related documents or the creation of fake identities during the sale of the car. Such cases of forging the engine and chassis number have been reported before and the regulator wishes to clamp down on such cases altogether, which is why this step has been taken.

What is the Procedure to Cancel the RC?

The cancellation of the RC implies that the car is scrap and cannot be registered under anyone’s name. The procedure to cancel the RC is a simple, 3-step process. It is as follows: –

  • Step 1: Report the total loss condition of your vehicle to the State Regional Transport Office (RTO) within a period of 14 days.
  • Step 2: Wait for the clearance of the police department to the RTO for cancellation of the RC. Once that is done, the certificate of non-utilization will be issued by the RTO and will be issued within a period of 4 to 5 weeks.
  • Step 3: A fee (as prescribed by the state government) will have to be paid to the RTO to complete this cancellation.

Conclusion

Though there is no penalty for non-cancellation, ensure that the process is complete well within time to avoid any potential legal trouble. The process is not complicated and requires next to nothing from your end.

Do not neglect/put off this procedure for later for your benefit and the benefit of the society at large that is plagued with such unscrupulous practices.

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