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Latest Car Insurance News

Vehicle Scrappage Policy: What does it mean to you?

In the recently announced Budget 2021, the government announced the scrappage policy in light of which the government intends to phase out unfit and old vehicles. Government further confirmed that this would help reduce the country's fuel import bills and pollution too.

As per the details shared by the Union Road Transport Minister Nitin Gadkari, there are 51 lakh vehicles falling in the light motor vehicle category that are over 20 years old.

The number reaches 17 lakh when it comes to commercial vehicles in India which are over 15 years old. As these are likely to cause major pollution in our country, they prove to be a threat to the environment. With the scrappage policy, cars that are 15 years old will undergo a fitness test post which retail a 20 year old car will come with a cost that the government terms as 'Green Tax'.

- February 16, 2021

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