The Insurance Regulatory and Development Authority (IRDAI) has issued a circular directing all the Insurers in India to abide by the directions of the Supreme Court of India stating that Insurers must ensure that no motor policy shall be renewed until the vehicle owner provides a valid Pollution Under Control Certificate (PUC).
The Regulatory Body further added that, “…Please 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).” It has also been stated in the directions that a vehicle without a valid PUC certificate shall be liable to be prosecuted under the Motor Vehicles Act.
Earlier, The Supreme Court of India in 2018 had issued directions to insurer providers regarding this matter. This new order by the IRDAI reinstated the old directions of the Supreme Court. Further, the order states that, a valid pollution license is mandatory for all claims. In case of an accident, an invalid PUC shall not entitle the vehicle owner to any damage recovery.
The PUC is essentially a valid determination to check if a vehicle’s emission levels are in compliance with the acceptable standards as prescribed by the Indian Government. The notice has been circulated to all the Insurance companies in order to ensure that the directions of the Apex Court are followed meticulously.