Motor Insurance Policy: The owner of a vehicle, especially in the National Capital Region of Delhi, will now have to provide the pollution certificate at the time of renewing their insurance policies. Earlier, the Supreme Court had directed Insurance Companies not to insure a vehicle unless it has a valid PUC certificate on the date of renewal of the insurance policy.
IRDAI has issued a circular to all general Insurance Companies to ensure that the direction of Supreme Court of India is followed scrupulously with special focus on compliance in National Capital Region of Delhi (Delhi – NCR).
In the latest circular, the IRDAI has stated that the Central pollution control board (CPCB) has raised concerns regarding status of compliance of direction of Supreme Court of India in National Capital Region of Delhi (Delhi – NCR).
“In the latest circular issued by IRDAI, the regulator 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 has asked insurers to ensure that the direction of 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 focus on compliance in National Capital Region of Delhi (Delhi – NCR),” Sajja Praveen Chowdary, Head-Motor Insurance, Policybazaar.com
Insuring any vehicle like two-wheeler or car will now require the PUC certificate to be submitted to the insurer. “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” says Chowdary. It remains to be seen how the PUC certificate will be shared with the insurer especially when the renewing of insurance is being online.