Vehicle Owners Must Have A Valid PUC Certificate To Renew Insurance: IRDAI

The Insurance Regulatory and Development Authority of India (IRDAI) has advised all insurance companies to ask for valid pollution under control (PUC) certificate from vehicle owners at the time of renewing their motor insurance policies. The circular released by the regulatory body has pointed out to the Supreme Court's directive from August 2017, in which the apex court had asked insurance companies "not to insure a vehicle unless it has a valid PUC certificate on the date of renewal of the insurance policy."

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This is the second time that IRDAI has put out a circular asking all CEOs and CMDs of General Insurance Companies to comply with the Supreme Court's order. Before this, the regulatory body has sent a similar circular in July 2018. In its latest circular, IRDA said, "Central pollution control board (CPCB) has raised concerns regarding the status of compliance of above direction of Hon'ble Supreme Court of India in National Capital Region of Delhi (Delhi - NCR)."

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All vehicles are required to mandatorily carry a valid PUC certification at all times

In fact, given the rising vehicular pollution, IRDAI has specifically asked all insurers to ensure that the above direction of the Supreme Court is followed rigorously with special focus on compliance in Delhi-NCR. In fact, under the Motor Vehicles (Amendment) Act 2019, which was released last year, violation of PUC norms would invite a fine of Rs. 10,000. However, the new Motor Vehicle (Amendment) Act is yet to be implemented across India.

PUC certificates are mandatory for all vehicles across India and are used by authorities to keep a check on the level of pollution emitted from vehicles, like Carbon Monoxide and Hydrocarbon. Once the vehicle undergoes a PUC test successfully, a certificate is provided to the vehicle owner, which will be valid for six months.