Buy your two-wheeler insurance in 60 seconds!⚡
Plans starting @ ₹1.3/day*
Processing

Cancel Your Bike Registration Certificate After Scrapping

Two-wheelers are the most convenient and affordable means of transport in India. It becomes more important for bike owners to get the right bike insurance coverage that can financially protect them in case of partial damage or Total Loss (TL). According to Section 55 of the Motor Vehicle Act 1988, cancelling the RC of the vehicle is mandatory in case of Total Loss (TL). Continue reading to understand the total loss in a bike and how to cancel RC after scrappage.

Read more

What is the Total Loss (TL) of a Bike?

In bike insurance, the total loss of a bike refers to the situation where the repairing cost of a vehicle is more than 75% of the Insured Declared Value (IDV) of the vehicle. The IDV refers to the maximum amount a policyholder can claim from the insurance company for the damage or loss of the bike. If the insurer has to pay more than the IDV, then it is considered a case of total loss.

The concept of a total loss of a bike does not apply to third-party liability. The insurer will only pay the IDV for the damage caused by a natural calamity, fire, theft, or accident under the comprehensive bike insurance policy.

Therefore, the bike will be considered a total loss if the repair cost is more than 75% of the IDV. Here, the insurer will pay the IDV as the claim amount for the replacement of your bike.

What to Do in Case of Total Loss of Bike?

You can sell the remaining parts of your bike to a scrap dealer if your motor insurance company declares your vehicle as a total loss. You can easily find two-wheeler scrap dealers near you. The scrap dealer will take the remaining parts to recycle. If you are planning to scrap your two-wheeler, then you will have to cancel your bike's RC as well.

RTO Rules for Scrapping Two-wheelers

As per the Motor Vehicle Act, 1988 under Section 55, it is mandatory for a bike owner to cancel the Bike's RC after scrapping.

The bike owner must inform the Regional Transport Office (RTO) within 14 days about the total loss. Then RTO will cancel the RC of the bike. Then your bike will be nothing but scrap material, and the RC will not be registered to anyone else.

The cancellation of RC will be completed only when the police send a clearance report to the RTO. Once it is cancelled, RTO will issue a non-utilization certificate for the bike within 4-5 weeks. The rules and cancellation fee will vary according to the state.

How to Cancel RC of a Bike?

If your insurance company has declared your bike totaled, then you can begin the cancellation process of RC. You can follow the procedure mentioned below to cancel the RC of a bike-

  • Find a two-wheeler scrap dealer near you, and sell your totaled bike to them
  • The dealer will provide you the chassis number after cutting the parts that can be recycled, and this will prove that your bike has been scrapped
  • Next, get an affidavit made that declares your bike has been scrapped
  • Inform about this the nearest RTO
  • Submit mandatory documents to the nearest RTO for scrappage 
  • The nearest RTO will verify all those documents and get clearance from the police station. Then they will cancel the RC of your bike
  • Next, the report will be transferred to the original RTO where the bike got registered initially
  • That original RTO will cancel the RC
  • They will inform you when the RC is cancelled. After then, you will receive a non-utilization certificate for your bike from that RTO.

Mandatory Documents Required to Cancel the RC

You will have to provide the below-mentioned documents to the RTO-

  • Registration certificate of the scrapped bike
  • Cutting of Chassis number from the scrapped bike
  • Affidavit that states the bike is scrapped
  • Bike insurance policy
  • PUC certificate of your scrapped bike

Importance of Cancellation of RC in Total Loss of Bike

It is crucial to cancel the RC of the bike in case of total loss. Here are some of the reasons why you need to be extra careful when it comes to cancelling the RC of the totaled bike-

1. Prevent Misuse of Damaged Bike Documents

In a road accident or due to any natural calamity, if the bike is damaged completely, the insurance company declares it a Total Loss (TL). As a bike owner, then becomes compulsory for you to cancel the RC of the bike. 

If you do not cancel the RC of the scrapped bike, there are chances that fraud or thieves can misuse the documents of the scrapped bike. They might give a new identity to a stolen bike or might indulge the bike in illegal activity using your documents.

2. Prevent Bike Theft 

When you sell your bike to a scrap dealer without cancelling the RC, usually, the thieves take it as an opportunity. When a thief steals a bike, they try to hide it in plain sight. They change the identity of the stolen bike with your RC, its engine number, and chassis number and then replace it with the one they stole. But if you cancel the RC, then these activities can be put to an end.

Things to Keep in Mind While Cancelling the RC 

You will have to keep certain things in mind when you go for the cancellation of your bike’s RC- 

  • Inform your RTO within 14 days of scrapping your bike
  • Make sure you have third party bike insurance or a comprehensive bike insurance policy for a smooth cancellation process
  • Ensure that you have renewed the bike insurance timely to raise the total loss claim. 

Conclusion

To protect your scraped bike against fraudulent or illegal activities, it is crucial to cancel the RC of your totaled bike. Also, make sure you have renewed your bike insurance policy on time, so you can raise the total loss under your comprehensive bike insurance policy. 

new-compare-save-upto-85-on-bike-insurance-mobile
Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
new-bike-insurance-1-3-rs

Two Wheeler insurance Articles

  • Recent Article
  • Popular Articles
11 Feb 2025

Two-Wheeler Insurance Trends 2025

The Indian two-wheeler market is reviving with a significant

Read more
07 Feb 2025

Understanding Digital Driving License Impounding...

In India, driving license impounding refers to when authorities

Read more
03 Oct 2024

How to Check the VIN, Chassis Number and Engine...

Every two-wheeler has several identifiers, which make it

Read more
10 Jun 2024

Common Problems Faced by Bike Owners and Their...

As a motorcycle owner, you might face various problems that

Read more
07 May 2024

10 Best Bikes for Long Rides in India 2025

Are you the one who want to cruise through the winding roads of

Read more

Three Easy Ways to Check Bike Insurance Expiry...

As significant as it is to buy a bike insurance for your motorbike, it is equally important to renew it timely

Read more

How to Check Bike Owner Details by Registration...

In a world full of different types of two-wheelers, each one has its unique identity enclosed in its registration

Read more

How to Get Bike Insurance Details by Vehicle...

According to the IRDA, all bike owners must hold at least a third-party bike insurance policy in India. The bike

Read more

Parivahan Sewa & RTO: How to Check Your Bike...

As a two-wheeler owner in India, you must carry a valid bike insurance policy. Do you know with a few scrolls

Read more

Check Vehicle Owner Details by Registration Number

Vehicle owner details can come in handy in various situations, such as road accidents, cases of reckless driving

Read more

^The renewal of insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for a transaction may vary subject to additional data requirements and operational processes.

^The buying of Insurance policy is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. Actual time for transaction may vary subject to additional data requirements and operational processes.

#Savings are based on the comparison between highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*TP price for less than 75 CC two-wheelers. All savings are provided by insurers as per IRDAI-approved insurance plan. Standard T&C apply.

*Rs 538/- per annum is the price for third party motor insurance for two wheelers of not more than 75cc (non-commercial and non-electric)

#Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

*₹ 1.5 is the Comprehensive premium for a 2015 TVS XL Super 70cc, MH02(Mumbai) RTO with an IDV of ₹5,895 and NCB at 50%.

*Rs 457/- per annum is the price for the third-party motor insurance for private electric two-wheelers of not more than 3KW (non-commercial).The list of insurers mentioned are arranged according to the alphabetical order of the names of insurers respectively.Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in