Why cancelling your RC is crucial in case of total damage?

Posted on: May 13, 2020 | 3 mins | Written by: HDFC ERGO Team

Why cancelling your RC is crucial in case of total damage?

In extreme cases of accidents, where the vehicle gets completely damaged, the owners tend to sell the remains of the destroyed vehicle to the scrap dealers without remembering to cancel their RC. Documents about such vehicles are misused by fraudsters to give a new identity to stolen vehicles by forging the chassis number and engine number.

According to Section 55 of the Motor Vehicle Act 1988, it is the responsibility of the owner of a destroyed vehicle that has undergone Total Loss (TL) to get the Certificate of Registration (RC) cancelled. For this purpose, the owner has to inform the registering authority about the total loss of the vehicle within 14 days. Thereafter, the registering authority shall cancel the registration.

What is “total loss” for a vehicle?

When an automobile is considered a "total loss," it means that the costs of repairing it are above its market value, thus making repairing it an economically viable choice. In this case, such total loss will affect the claim settlement in car insurance. In the event of a total loss to absolve all possible legal implications regarding ownership transfer, cancellation of the RC is imperative, particularly in cases covered by third-party car insurance. Hence, this answers the question of why cancelling your RC is crucial in case of total damage.

What is an RC?

RC, formally known as the Registration Certificate, is an authentic document issued by the Regional Transport Office (RTO) that certifies the registration of a vehicle. The essential details covered by it include vehicle make and model, engine number, and particulars relating to the owner. Moreover, the RC is vital for asserting legal ownership and abiding by road regulations.

Why should you cancel your RC?

RC cancellation is of paramount importance as legal hassles are avoided and transfer of ownership is done correctly with this. It helps in avoiding the fuss about car insurance claims, especially with the company providing third-party car insurance. Further, it prevents misuse of the vehicle as well as the fulfilment of various rules and regulations it is bound by.

How can You Cancel Your Vehicle RC?

Cancel your RC vehicle following these steps:

1. Go RTO:

Visit the RTO of the jurisdiction where the vehicle is registered.

2. Application Submission:

Fill in the application form and submit it for cancellation of RC.

3. Provide Documents:

Original RC, identity proof, and copy of the insurance policy are to be attached.

4. Fee Payment:

Pay the required fees.

5. Receive Acknowledgment:

Receipt of acknowledgement must also be obtained.

Documents Needed to Cancel Vehicle RC

To cancel an RC for a vehicle, one needs a certain set of documents:

1. Original Registration Certificate (RC)

2. Identity Proof (Aadhaar, Passport etc)

3. Copy of Insurance Policy

4. Application Form for RC cancellation

5. NOC (if applicable)

Conclusion

Cancelling your RC in case of total damages is important in terms of getting things legally sorted and transferring ownership properly. It makes the entire car insurance claim process a bit easier, especially in cases of third-party car insurance, and also prevents malicious use of the vehicle.

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

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