There has been a huge rise in pollution in India as many people are now able to afford a car for their daily commute or travelling. Due to this, the government has brought a car scrap policy that requires any commercial vehicle which is older than 15 years and private vehicles that are 20 years old to be scrapped as they produce more emissions. This policy has been crucial to effectively reducing carbon footprint and managing the vehicles that are being used on the road. Here we are going to look at what is vehicle scrappage policy and what are its benefits.






What is the Vehicle Scrappage & Car Scrap Policy in India?

Also known as the car scrap policy is a government-funded policy to scrap older vehicles which are a major cause of emissions and leading carbon footprint in India. It was introduced on March 18, 2021 and was implemented starting in April 2022. Its primary aim was to not allow re-registration of private vehicles which are 20 years old and commercial vehicles that are 15 years old. The duration of commercial vehicles is shorter as they tend to have heavy use and are more prone to wear and tear ultimately leading to a higher carbon footprint. Vehicles are also required to take a fitness test at the Automated Testing Facility (ATS) which will help determine their re-registration.

Highlights of Vehicle Scrappage & Car Scrap Policy:

India's old car scrap policy has been a significant booster in not only improving air pollution but also the automobile sector which had witnessed growth in 2019 but has been getting better as the vehicle scrappage policy for private vehicles is promoting sales of new vehicles in the market. Following are the major highlights of the vehicle scrappage policy:

  1. The primary objective is to scrap any vehicle that is old and unfit for the road.
  2. The old vehicle will be subjected to a fitness test to determine its roadworthiness.
  3. Reduction in overall carbon footprint and emission generated through old vehicles.
  4. The policy will be enforced for Heavy Commercial Vehicle (HCA’s) from April 2023 and for private vehicles and other small commercial vehicles from April 2024.
  5. The gradual development of a proper phasing out a system for old and excess pollution creating vehicles from the road.

Benefits of Vehicle Scrappage & Car Scrap Policy:

The vehicle scrappage policy is very important in the proper management of old vehicles on the road and reduces their overall impact on the environment. The following are the benefits vehicle scrappage policy:

  1. Improve air quality and help reduce overall carbon footprint.
  2. Create new demand for the automotive sector.
  3. Improvement in car emission technology.
  4. Proper and systematic management of old vehicles.
  5. Owners can get tax benefits when getting a new vehicle by scrapping their old vehicle. They can receive a road tax exemption of up to 25% based on the vehicle scrapped.
  6. Create a new industry for recycling and scrapping old vehicles, hence improving the overall economy.

Disadvantages of Keeping Old Vehicles:

The following are the disadvantages of owning old vehicles:

  1.  Higher registration fees:

One will have to pay higher re-registration fees for their RC for owning old vehicles.

  1.  Higher maintenance cost:

Maintenance costs can be very heavy on one’s pocket as many times there is a lack of proper spare parts and service centres for old vehicles.

  1.  Higher road tax:

One will have to pay higher road taxes as the government has raised the green cess on old vehicles to 10-15% higher than regular road tax.

  1.  Charges on fitness certification:

The old vehicles will require periodic fitness tests done on them to check their emission levels and their roadworthiness.

How Can One Get Their Vehicle Tested or Scrapped?

Car scrap policy has made it mandatory for many old vehicle owners to get their vehicles tested for fitness and roadworthiness. Following are the steps one needs to follow by vehicle scrappage policy for a private vehicle to get their old vehicle tested and scrapped:

  1.  Visit the nearest testing centre:

One needs to first visit the nearest Automated Testing Facility (ATS) to get their vehicle tested.

  1.  Get the vehicle tested:

The vehicle is then tested under various safety and emission parameters and is provided with a road rating.

  1.  Get the fitness certificate:

The owner is provided with a fitness certificate for their vehicle which can be used as a basis for getting their vehicle scrapped or serviced again to meet the proper standard for the road.

  1.  Provide the proper documents:

One needs to submit all the required documents for getting their vehicle scrapped at the scrap centre with the fitness certificate to verify the condition of the vehicle.

  1.  Get the vehicle scrapped:

Finally, the vehicle is scrapped, and the owner is provided with a scrapped certificate for their vehicle which they can use to get discounts and tax benefits when buying their new vehicle.

Effect on Insurance Due to Vehicle Scrappage & Car Scrap Policy:

The owner needs to properly inform the insurance policy provider of their old vehicle status when they are scrapping them. Following are the impacts on one’s insurance when getting their old vehicle scrapped:

  1.  Cancellation of Insurance:

The insurance provider cancels the insurance policy for the old vehicle of the owner. The cancellation will happen in another year if one has already claimed the insurance.           

  1.  Discount on New Vehicle Insurance:

One might also get a discount on their new insurance policy by scrapping their old car.


Today due to rising emissions and a reduction in the air quality index the government has brought India's old car scrap policy. Commercial vehicles that are 15 years old and private vehicles that are 20 years old will be subjected to fitness and roadworthiness tests by Automated Testing Facility (ATS) and will be provided with a fitness certificate that can be used to get re-registration of the vehicle or get their vehicle scrapped from the nearest scrap centre. One can get various benefits by getting their old vehicle scrapped like discounts and tax exemption when getting their new vehicle and insurance. Now, one can easily insure their new vehicle online in just a few steps from Quickinsure to compare various available plans and get the one that meets all their requirements.


 Q1. Is it mandatory to scrap old vehicles?

Ans. There has been no mandate to get the vehicle scrapped but one may need to pay higher taxes when using an old vehicle on the road.

  Q2. What are the charges for re-registration of RC of old vehicles?

Ans. One can be charged up to ₹600-₹5000 based on the vehicle type, model, and emission levels. Charges can vary according to the policy modification by the government.

 Q3. Why is the vehicle scrappaging policy needed?

Ans. India's old car scrap policy or car scrap policy was needed to reduce the pollution level and the carbon footprint in the environment caused by old vehicles.

 Q4. Is vehicle scrappaging policy implemented across all old vehicles?

Ans. Any private vehicle that is older than 20 years and commercial vehicle that is older than 20 years is subject to scrappage policy.

go to top img

Insurance Companies