Switch to Digit Insurance

Trusted by 2 crore Indians

1 Year Waiting Period

Health
Car
Third-party premium has changed from 1st June. Renew now

Bike
Commercial
COVID-19 covered

Travel
More

Registration Number

Car Owner Name

Mobile Number

+91

Enter Mobile Number to Proceed

+91

ENTER YOUR CAR NUMBER

DON'T KNOW YOUR CAR NUMBER?

renew digit policy

I agree to the Terms & Conditions

Registration Number

Vehicle Owner Name

Previous Policy Expiry

Not Expired

Expired

DON'T KNOW REGISTRATION NUMBER?

I KNOW MY REGISTRATION NUMBER

IT'S A NEW BIKE

RENEW DIGIT POLICY

I agree to the Terms & Conditions

Registration Number

IT'S A NEW BIKE

RENEW DIGIT POLICY

I agree to the Terms & Conditions

Which countries are you visiting?

Most Popular(You can select more than one)

Leaving date

Return date

I agree to the Terms & Conditions

As mandated by Spanish Authorities your travel insurance needs to extend 15 days after your trip ends.
We will extend your coverage period accordingly.

Pin Code

In case, you wish to buy a plan for your siblings, aunts, uncles or any other relatives, you can buy a separate plan for them.

Add Members you want to insure

Mobile Number

Port my existing Policy

or renew digit policy

You can select more than one member

-+ Max kids

(s)

Registration Number

Vehicle Owner Name

Mobile Number

+91

City

Mobile Number

+91

ENTER YOUR REGISTRATION NUMBER

DON'T KNOW YOUR REGISTRATION NUMBER

or renew digit policy

I agree to the Terms & Conditions

Switch to Digit Insurance

Vehicle Scrappage Policy in India

Vehicle Scrappage Policy — (Source: ey.com)

Nirmala Sitharaman, India’s Finance Minister, declared a new vehicle scrappage policy during the Union Budget on 1st February 2021.

Later, on 18th March 2021, Nitin Gadkari, Minister for Road Transport and Highways, announced this scheme fully with all details. The idea behind this plan was to phase out vehicles that were older than 15-20 years. The Government took this step to bring down levels of urban pollution.

So, without further ado, let’s look into all the details of the vehicle scrappage policy in India.

What Is Vehicle Scrappage Policy?

The vehicle scrapping policy says that the Government will phase out commercial vehicles of more than 15 years and passenger vehicles of more than 20 years if they fail the emissions and fitness tests.

The idea behind this policy is to reduce pollution and boost the economy, which is suffering post-pandemic. Some also view it as a way to stimulate the Original Equipment Manufacturers’ demand.

What Are the Highlights of Vehicle Scrappage Policy Announcement?

Here are some significant highlights of the vehicle scrapping policy in India.

There will be a system in place to scrap unfit vehicles.
People should prepare to buy environmentally-friendly, safe, and technologically advanced vehicles in the future.
Scrapping old and unfit vehicles will reduce pollution in specific locations.
There will be certain benefits for vehicle owners who opt to do this.

What Are the Benefits of Vehicle Scrappage Policy?

The new vehicle scrappage policy has many benefits. Take a look at some of them!

The scrapping of unfit vehicles will result in less air pollution and much better air quality.
Vehicle owners may receive tax benefits to scrap old vehicles.
It will lead to the reorganisation and growth of the recycling industry.
The entire automobile sector will benefit as there will be a higher demand for jobs in scrapping centres.
There will be a demand for new vehicles, as the old ones are scrapped.

Eligibility Criteria for Vehicle Scrappage Policy

For a vehicle to become eligible for scrapping, it should be more than 15 years if it is a commercial vehicle and 20 years if it is a passenger vehicle.

What Is the Categorisation of Vehicles for the Scrappage Policy?

Since there are different types of vehicles, vehicle scrapping laws cannot be the same for all classes. Hence, the Government has categorised them into different types.

Commercial Vehicles: After 15 years have passed, commercial vehicles will be subject to a fitness test. If it passes this test, it will be allowed to ply. Otherwise, it cannot run and will be scrapped according to the rules specified for commercial vehicles.
Government Vehicles: The Government will implement this policy from 1st April 2022. All State and Central government vehicles that are above 15 years of age will be scrapped.
Private Vehicles: After 15 years, these vehicles will also undergo tests and will only be eligible to ply on road if they pass this fitness test.
Vintage Vehicles: The vehicle scrappage policy in India will not apply to vintage vehicles as they are well maintained and driven less frequently.

There are many benefits for vehicle owners under the vehicle scrappage policy. They may receive a discount of 5% upon purchasing a new vehicle. All they have to do is show the certificate they received from scrappers. Hence, the overall vehicle scrappage policy is beneficial for owners as well as the environment.

Frequently Asked Questions

✓ What happens if your vehicle fails the fitness test?

If your vehicle fails the fitness test, it is allowed to take up to 2 retests. Failing that means it will not be permitted to obtain a registration certificate. Therefore it cannot ply on the roads.

✓ When does my vehicle compulsorily have to take the fitness test?

The vehicle has to take the fitness test when the registration cycle is complete.

✓ When will the scrapping policy come into effect?

Commercial vehicles will start their mandatory testing from 1st April 2023. For passenger vehicles, 1st June 2024 is the starting date.

Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

Important Articles about Traffic Rules & Documents Required

Traffic Fines in Karnataka

Traffic Fines in Kerala

Motor Vehicle Act

Check & Pay Traffic Fines Online

Drink and Drive Fine in Bangalore

Drink and Drive Fine in Mumbai

Drink and Drive Fine in Delhi

Drink and Drive Fine

Fine for Driving without Insurance

Fine for Signal Jumping

Delhi Traffic Fines

Vehicle Registration Transfer

Bike Ownership Transfer

How to Find Vehicle Owner Details by Registration Number

Transfer of Vehicle Registration from One State to Another State

Mumbai Traffic Fine

Maharashtra Traffic Fine

NOC for Vehicle

Bike Insurance Transfer

Car Insurance Transfer

Transfer Car Ownership

Transfer Car Registration

Bike RC Transfer

Goa Traffic Fines

Gujarat Traffic Police Challan List

Traffic Fines in Chennai

Check and Pay Traffic Fines in Bangalore

Check and Pay Traffic Fines in Mumbai

Check and Pay Traffic Fines in Delhi

Check and Pay Traffic Fines in Pune

Check Bike Insurance Expiry Date Online

Check Car Insurance Policy Status Online

New Motor Vehicle Rules from 1st Oct'20

7 Traffic Rules every Motor Vehicle driver should know

How to Import Foreign Cars/Bikes in India

Difference between Teflon and Ceramic Coating

Fancy VIP Numbers for Car and Bike

High Security Number Plate (HSRP)

Different Types of Number Plates

How to get Temporary Registration Number in India

Cancel Vehicle RC in case of Total Damage

Duplicate Vehicle Registration Certificate

BS Vi Norms Explained

Renew Vehicle Fitness Certificate

Vehicle Fitness Certificate

Types of Motor Vehicle Permits in India

How to Apply for a Vehicle RC Renewal?

Road Safety Rules in India

Difference Between Ex-Showroom Price and On-Road Prices of Vehicles

Find Engine Number, Chassis Number & VIN

How to Get a PUC Certificate for your Vehicle?

Driving Licence Test Questions & Answers

Important Traffic Signs to Follow in India

Vehicle Scrappage Policy in India

How to Test Drive a Car?

What is Green Tax for Vehicles in India?

Show more

Important Articles about Driving Licence in India

Driving Licence in Chennai

Driving Licence in Mumbai

Driving Licence in Kolkata

Driving Licence in Hyderabad

Commercial Driving Licence

New Driving Licence Rules in India

How to Renew Driving Licence in Bangalore?

How to Get a Duplicate Driving Licence?

How to Apply for a Smart Card Driving Licence?

How to Link Driving Licence with Digilocker?

How to Renew Driving Licence in India?

How to Renew Driving Licence in Tamil Nadu?

How to Renew Driving Licence in Odisha?

How to Renew Driving Licence in Kerala?

How to Renew Driving Licence in Punjab?

How to Renew Driving Licence in Mumbai?

How to Renew Driving Licence in Delhi?

How to Change Address on a Driving Licence?

How to Renew Driving Licence in Maharashtra?

How to Renew Driving Licence in Uttar Pradesh?

How to Renew Driving Licence in Gujarat?

How to Renew Driving Licence in Rajasthan?

How to Renew Driving Licence in Telangana?

How to Renew Driving Licence in Goa?

How to Renew Driving Licence in Assam?

How to Renew Driving Licence in Himachal Pradesh?

How to Renew Driving Licence in Arunachal Pradesh?

How to Renew Driving Licence in Bihar?

How to Renew Driving Licence in Jharkhand?

How to Renew Driving Licence in Madhya Pradesh?

How to Renew Driving Licence in Uttarakhand?

How to Change/Update Name on Driving Licence

Show more

View Instant Premium

Switch to Digit Insurance

Get our app

Download man

App Store

Google Play

Health Insurance Guides

Car Insurance Guides

Bike Insurance Guides

Calculators

Business Products

RTO Offices in India

Important Links

Car Brands & Models

CIN: U66010PN2016PLC167410, IRDAI Reg. No. 158.

Go Digit General Insurance Limited (formerly known as Oben General Insurance Ltd.) - Registered Office Address - 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, City Survey No.1579, Shivaji Nagar, Pune-411005, Maharashtra | Corporate Office Address - Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru-560095, Karnataka