The Government’s Vehicle Scrappage Policy

Why Was the New Vehicle Scrappage Policy Launched?

The new vehicle scrappage policy aims to stop the usage of old two-wheelers on the roads to reduce air pollution. An old and unfit bike not only contributes to air pollution but also is more prone to mishaps, like road accidents. That is why the new vehicle scrappage policy was introduced by the Government of India.

Here, we have mentioned some of the crucial points for the release of Vehicle Scrappage Policy in India:

• Reduces Air Pollution: Older vehicles, especially those with outdated technology, emit higher levels of pollutants. Removing them from the roads helps improve air quality and public health.
• Improves Road Safety: Aging vehicles are more prone to breakdowns and accidents due to wear and tear. The policy encourages replacing these vehicles with safer, newer models.
• Boosts the Economy: The policy stimulates the automotive industry by encouraging the purchase of new vehicles. It also promotes the recycling and recovery of valuable materials from scrapped vehicles, benefiting the metal industry.

Just as having third-party bike insurance is essential for financial protection in case of accidents, the scrappage policy is crucial for environmental and road safety.

How Does the New Vehicle Scrappage Policy Works?

Under the Vehicle Scrappage Policy 2021, an old two wheeler needs to go through a test to assess the vehicle's fitness and durability. Take a look at how the new policy works along with the mandatory test that every old two-wheeler has to undergo under the new policy:

1. Fitness Test: As per the new vehicle law, all two-wheelers aged 20 years or more need to undergo a mandatory fitness test. Those who have registered their vehicle for commercial purposes will have to go through this fitness test after 15 years to renew their registration certificate for the next five years.
2. Computerised Fitness Test: The mandatory vehicle fitness test, which is currently conducted manually by a person authorized by an RTO, is soon going to be computerised. This advanced fitness test service will be available under a Public-Private Partnership Model. There will be no human intervention during the computerised test and thus, the results will be correct & valid.
3. Mandatory End of Life Vehicle Certificate: In case a two-wheeler fails to pass the fitness test, it will be issued with an End of Vehicle certificate and deemed unfit for road use. It cannot be re-registered and any insurance company will provide no bike insurance policy. Moreover, the unfit bike/scooter must be scrapped at a registered vehicle scrapping facility. On the contrary, those two-wheelers who pass this test can re-register with the RTO.

Benefits Offered Under the New Vehicle Scrappage Policy

In case your two-wheeler fails the fitness test and you are forced to scrap it under the new vehicle scrappage policy, you can still enjoy the following benefits:

1. Get the Scrap Value of Your Old Two-wheeler: You can get the scrap value of your bike when you scrap your old & unfit bike at a registered vehicle scrapping facility centre. A scrapped bike is valued for the weight of its material like- metal and plastics.
2. Discount on New Two-wheeler: Under the new vehicle scrappage policy, you are eligible for a special discount on the purchase of a new bike against your scrappage certificate. The Ministry of Road Transport and Highways has proposed a special discount of 5% for people whose vehicles have been scrapped under the policy. Thus, you can save money while purchasing a new two-wheeler.
3. Discount on Road Tax and Vehicle Registration: The government is also offering a discount on road tax and vehicle registration to people whose two-wheelers have been scrapped under the new policy. As per the Vehicle Scrappage Policy 2021, the government is allowed to provide a rebate of up to 25% on the road tax. Also, the registration tax on the new bike has been completely waived.
4. Environment Benefits: The idea is to reduce air pollution and promotes responsible disposal of old vehicles. Moreover, it stimulates the automotive and metal industries as it promotes recycling.

Final Words!

The Vehicle Scrappage Policy is a significant step towards a cleaner and safer environment in India. By understanding the two-wheeler scrap policy benefits and the process involved, you can make informed decisions about your old bike and contribute to a greener future. If you do decide to scrap your old two-wheeler and buy a new one, remember to get adequate two-wheeler insurance online to ensure you are financially protected on the road.