The Insurance Regulatory and Development Authority (IRDAI) has advised all general insurers to mandate vehicle owners to provide a valid Pollution Under Control Certificate (PUC) at the time of renewal of their motor insurance policy. The regulatory body said that insurers should ensure that the direction of the Supreme Court of India that stated insurers must not renew any motor policy until the vehicle owner provides a valid PUC certificate is followed strictly with a focus on compliance in the National Capital Region of Delhi (Delhi – NCR).
“Central pollution control board (CPCB) has raised concerns regarding the status of compliance of direction of the Supreme Court of India in the National Capital Region of Delhi (Delhi – NCR). Please ensure that the direction of the Supreme Court of India is followed scrupulously with special focus on compliance in the National Capital Region of Delhi (Delhi – NCR)," IRDAI said in its circular addressed to all CEOs and CMDs of general insurance companies.
If the vehicle’s PUC certificate’s validity is expired during the time of the accident, the insurance companies will not cover any damages, the regulatory body said, adding that the pollution license is essential for all claims.
PUC certificate checks that the emissions passed from a vehicle meet the pollution control standards that are fixed for all types of motor vehicles in India.
"Upon successfully passing the test, the vehicle owner is granted a PUC certificate. A PUC certificate ensures that emissions from a vehicle are not harmful to the environment," explains Sajja Praveen Chowdary, Head-Motor Insurance, Policybazaar.
New cars are not required to have their PUC check done for the initial year, but after completion of 1 year, their vehicle also needs to have a valid PUC certificate. Usually, a PUC certificate is valid for 6 months, but sometimes a PUC of 1-year validity can also be provided.
According to Dhirendra Mahyavanshi, Co-Founder, Turtlemint—an InsurTech Company—it is a very welcome move in order to keep the air pollution under control."In India, about 50 percent of the vehicles plying are uninsured. Now, with the PUC certificate, it will increase complications and one more layer of documentation required at the time of renewal. So, there would surely be initial hiccups but once the entire process is streamlined, it should be easier to process the same," he adds.