PUC certificate must for renewing vehicle insurance: IRDAI

CPCB raised concerns over compliance with SC order for having valid PUC certificate

Motor-Vehicles-Act-Fine-traffic-PTI A motorcyclist being stopped by police | PTI

The Insurance Regulatory and Development Authority (IDAI) has issued a circular directing insurance providers to comply with the Supreme Court order mandating producing valid pollution under control (PUC) certificates when renewing insurance policies.

The circular issued on August 20 notes that the Central pollution control board (CPCB) has “raised concerns regarding status of compliance” of above direction of Hon’ble Supreme Court of India in National Capital Region of Delhi (Delhi – NCR).

The order has its roots in a 1999 judgement, in the case of M.C. Mehta vs Union of India, which the Bhure Lal Committee report was citied stating that 90 per cent of the nitrogen oxide (Nox) and respirable paniculate matter (RSPM) in Delhi was due to diesel emissions.

Supreme Court in August 2017 passed orders mandating insurance providers to require policyholders to produce a PUC certificate at the time of renewing insurance.

In its latest order, the IRDAI directs insurance companies to obtain valid PUC certificates and not to provide coverage for those whose certificates had already expired at the time of a crash.

As per the Delhi Transport Department, “a vehicle, not carrying a valid PUC Certificate is liable to be prosecuted under Section 190(2) of the Motor Vehicles Act. A penalty of Rs.1000 for first offence and Rs 2000 for every subsequent offence”.

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