Prime Minister Narendra Modi introduced the vehicle scrappage policy, which has received much positive attention in the car industry. Governments from all over the world have collaborated with car makers to implement scrap policies for their citizens. However, India needs to catch up to the party, and a full-fledged scrappage program has only recently been implemented.
Goal Of India’s Vehicle Scrapping Policy
Experts predict that the policy on vehicle scrap will eventually benefit many industries and protect the environment. The policy aims to start a war against pollution by substituting new, clean vehicles for old, inefficient ones. Automated testing of vehicles with expired registrations will be built into the infrastructure. According to the law, a passenger vehicle’s registration is valid for 15 years, while a commercial vehicle’s registration is valid for 10 years.
How Will India’s Policy On Vehicle Scrapping Work?
Any vehicle’s owner may deliver their car to a government-approved scrap yard after the registration has expired. According to the country’s motor law, if a commercial vehicle is over eight years old, its fitness certificate must be renewed annually. A commercial vehicle must pass a test every two years for the first eight years. The fitness test determines the vehicle’s quality, whether it is safe to drive on public roads and the vehicle’s environmental impact. To receive its certificate, the car must pass several tests.
Benefits Of India’s Vehicle Scrapping Policy
When it comes to the advantages of India’s scrappage policy, there are many of them! The government has made several offers to those who scrap their vehicles. They will initially receive a scrap value of 4–6% of the ex-showroom cost of the new vehicle they wish to purchase. If the owners carry and present their certificate of deposit, the good news doesn’t stop there. They will pay no registration fees for their new vehicle. Additionally, it has been suggested that car makers provide a 5% concession on purchasing new cars when the certificate of deposit is presented.
Guidelines For Disposing Of An Old Car
- Explain in writing to the RTO why you’ve chosen to scrap the car.
- While scraping, cut the metal out and provide the registration certificate (RC) and the chassis number. Make sure you are familiar with what is RC number.
- Publish an affidavit stating that the vehicle is not subject to a loan, motor insurance policy claim, or ongoing legal action.
- Even that there has been no criminal activity involving the car should be stated in the affidavit.
- The concerned motor insurance policy provider must also be informed about the scrapping.*
- A no-objection certificate (NOC) from the police and the National Crime Records Bureau (NCRB) is issued by the RTO after the steps above have been completed and the submitted document has been carefully examined. The vehicle is deregistered by the RTO once all the paperwork has been terminated by the guidelines of the vehicle scrapping policy.
You can always utilise a vehicle insurance calculator to understand the appropriate level of coverage needed. Make sure you renew your vehicle insurance online on time.
*Standard T&C apply
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