FP TrendingAug 27, 2020 13:12:10 IST
Editor's Note: This story was originally published on 26 August, and has been republished with a correction on 27 August to reflect IRDAI's clarification that the PUC certificate was needed for motor vehicle insurance renewal but not for claims.
The Insurance Regulatory and Development Authority of India (IRDAI) has notified all general insurance companies in India to obtain valid pollution under control (PUC) certificate for vehicles at the time of renewal of policy.
According to a report by Live Law, the IRDAI in its circular has advised insurance providers to not renew the vehicle's insurance policy without the owner providing a valid PUC certificate as per the orders of the Supreme Court of India.
A report by The Indian Express said that if the validity of the PUC certificate has expired during the time of accidents, the insurance providers will not cover the any damages. The IRDAI emphasized that the pollution licence is essential for all the applications and renewals, but not required for claims.
Earlier, the apex court had ordered insurance companies not to insure a vehicle unless it has a valid PUC certificate on the date of renewal of the insurance policy.
As per the circular sent to all CEOs and CMDs of general insurance companies, IRDAI said, “Central Pollution Control Board (CPCB) has raised concerns regarding the status of compliance of above direction of Supreme Court of India in National Capital Region of Delhi (Delhi NCR).”
It asked companies to ensure that the direction of the court is followed scrupulously with special focus on compliance in Delhi–NCR.
According to a report by Indian Express, a PUC certificate confirms that the emissions from vehicles meet the pollution control standards. The pollution standards/emission levels are stipulated for all the kinds of vehicles in the country.
It is a certificate that is given to vehicle owners after the test confirms that the emission levels of their cars are within the prescribed safe limit.
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