HomeBlogVehicle Scrappage Policy Explained: What Happens After 15–20 Years?
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Vehicle Scrappage Policy Explained: What Happens After 15–20 Years?

    The vehicle scrappage policy in India represents a significant initiative by the government aimed at making the country's roads cleaner, safer, and more efficient. Many vehicle owners wonder what happens to their cars and bikes after 15 or 20 years of use. This article provides a comprehensive guide explaining the vehicle scrappage policy and what unfolds once your vehicle reaches the 15- or 20-year mark.

    What is the vehicle scrappage policy

    The vehicle scrappage policy was introduced by the Government of India in 2021. The Ministry of Road Transport and Highways (MoRTH) designed it to remove old and polluting vehicles from Indian roads. The rule is simple, if your vehicle is too old and fails the fitness test, it must be scrapped.

    For private vehicles, the limit is 20 years, and for commercial vehicles, the limit is 15 years. After that, you must get a fitness certificate from an authorized testing center. If the vehicle passes, you can continue to use it. If it fails, you must scrap it legally.

    In short, the vehicle scrappage policy explained what happens after 15–20 years means that your vehicle must prove it is still roadworthy and not polluting the environment.

    Why the government introduced this policy

    There are several reasons why India launched the vehicle scrappage policy:

    • Reduce air pollution: Older vehicles emit more harmful gases like carbon monoxide and nitrogen oxides. Removing them improves air quality.
    • Improve road safety: Many old vehicles do not have airbags, ABS, or other safety features.
    • Boost the economy: Scrapping old vehicles increases the demand for new ones, helping the automobile and recycling industries.
    • Encourage fuel efficiency: New vehicles consume less fuel, helping India reduce its oil imports.

    This shows that the vehicle scrappage policy explained what happens after 15–20 years is not just about removing old cars but about building a greener and safer India.

    What happens after 15 or 20 years

    After your vehicle crosses 15 years (for commercial) or 20 years (for private), here is what happens step by step:

    • Fitness test: You must take your vehicle to an automated fitness testing center.
    • If it passes: You can renew your registration certificate for five more years for private vehicles and one year for commercial ones.
    • If it fails: The vehicle is marked as unfit, and you must scrap it.

    Voluntary scrapping: Even before 15 or 20 years, you can choose to scrap your old vehicle and get incentives.

    So, the vehicle scrappage policy explained what happens after 15–20 years ensures that only safe and clean vehicles stay on the road.

    How to check if your vehicle is due for scrapping

    You can check this online on the Parivahan website. Just enter your registration number to see your vehicle’s age and registration expiry date. If your car or bike is nearing 15 or 20 years, you should prepare for a fitness test.

    If it fails, you will need to visit a Registered Vehicle Scrapping Facility (RVSF) to scrap it legally.

    Benefits of the vehicle scrappage policy

    The vehicle scrappage policy offers many benefits to both owners and the country.

    1. Financial benefits

    • Scrap value: Owners can get 4–6% of the ex-showroom price of their new vehicle as scrap value.
    • Discount: Manufacturers offer 5% discount when you buy a new vehicle using a scrappage certificate.
    • Road tax rebate: State governments may give up to 25% rebate for personal vehicles and 15% for commercial vehicles.
    • No registration fee: You don’t have to pay registration charges for the new vehicle.

    2. Environmental benefits

    • Less air pollution and cleaner surroundings.
    • Proper recycling of metal, plastic, and rubber.
    • Reduction in carbon emissions and waste.

    3. Safety benefits

    • Encourages people to drive modern vehicles with better safety systems.
    • Reduces accidents caused by poorly maintained old vehicles.

    4. Economic benefits

    • Creates jobs in recycling, steel, and automobile sectors.
    • Boosts demand in the car market.
    • The vehicle scrappage policy explained what happens after 15–20 years brings both personal and national-level benefits.

    Step-by-step process to scrap your old vehicle

    Scrapping your old vehicle in India is easy if you follow the correct process.

    • Locate a registered scrapping facility: Find an authorized scrapping center on the VAHAN or Parivahan portal.
    • Submit documents: Provide your vehicle’s RC, Aadhaar, PAN, and bank details.
    • De-register your vehicle: The scrapping center will contact the RTO to de-register your vehicle.
    • Receive certificate of deposit: This certificate proves your vehicle was scrapped legally. You can use it to claim discounts on your new vehicle.

    Always scrap your vehicle at an authorized center. Avoid unregistered scrapyards to stay safe and compliant.

    Penalties for not following the policy

    If you continue to use an unfit vehicle after 15 or 20 years without a valid fitness certificate, you may face:

    • Fines under the Motor Vehicles Act.
    • Seizure of the vehicle.
    • Denial of insurance claims.
    • Cancellation of your registration certificate.

    The government’s focus is not on punishing owners but on ensuring that roads are safer and cleaner.

    Government incentives for scrapping vehicles

    The government has introduced several incentives to encourage people to voluntarily scrap their old vehicles:

    Incentive typeDetails
    Manufacturer discount5% off new vehicle price
    Road tax rebateUp to 25% for private vehicles, 15% for commercial
    Registration fee waiver100% waiver
    Scrap value4–6% of ex-showroom price

    This means you get real financial benefits when you follow the vehicle scrappage policy explained what happens after 15–20 years.

    Impact on different vehicle types

    Private vehicles (20 years)

    You must do a fitness test after 20 years. If it passes, you can renew for five years; if it fails, it must be scrapped.

    Commercial vehicles (15 years)

    Fitness test is required every year after 15 years. If unfit, they cannot be renewed.

    Government vehicles (15 years)

    All government vehicles older than 15 years are automatically scrapped.

    This ensures that all old and polluting vehicles are removed responsibly.

    Environmental and economic impact

    When a vehicle is scrapped, its metal, glass, and rubber are recycled safely. Toxic materials like engine oil and coolants are disposed of in an eco-friendly way.

    This helps:

    • Reduce pollution.
    • Save natural resources.
    • Support India’s goal of becoming a sustainable economy.

    The recycling industry will also create thousands of jobs and reduce the country’s dependence on imported raw materials.

    Frequently asked questions (FAQs)

    1. What happens to a car after 15 years in India?

    For commercial vehicles, after 15 years, they must pass a fitness test. If they fail, they are scrapped.

    2. What happens to a private car after 20 years?

    Private vehicles must undergo a fitness test. If they pass, registration can be renewed for five more years. If they fail, they must be scrapped.

    3. Can I still use my 20-year-old car?

    Yes, if it passes the fitness test and you renew its registration certificate.

    4. How do I get a scrappage certificate?

    After scrapping your vehicle at an authorized center, you receive a certificate of deposit.

    5. Do I get any benefit from scrapping my car?

    Yes, you can get discounts on a new vehicle, a road tax rebate, and scrap value for the old one.

    6. Can I sell my old car instead of scrapping it?

    Only if it has a valid fitness certificate. Otherwise, it must be scrapped legally.

    Conclusion

    The vehicle scrappage policy explained what happens after 15–20 years is a smart and necessary step for India’s future. It helps reduce pollution, improve safety, and promote responsible recycling.

    If your vehicle is reaching its age limit, do not worry. Just check its fitness, renew it if possible, or scrap it responsibly through an authorized center. You’ll help make India’s roads cleaner, safer, and greener while enjoying financial benefits.

     

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    ARN: Zuno/Blog/DM/Vehicle scrappage policy explained what happens after 15–20 years/10/25/17

    Disclaimer

    Zuno General Insurance Limited does not assume any liability for actions taken based on the information contained in this blog. All insurance products and services are subject to the terms and conditions of the specific policy. Coverage and pricing may vary based on individual circumstances and eligibility.

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