The Insurance Regulatory and Development Authority (IRDAI) has issued a Circular mandating the furnishing of Pollution Under Control (PUC) at the time of renewal of vehicular insurance. The Circular was issued on 20th August 2020.
The PUC is a certificate that indicates the level of emissions of the vehicle meets the requisite pollution standards.
The IRDAI had earlier called for compliance with the Directions of the Supreme Court as laid down in the case of M. C. Mehta v/s Union of India [WP(C) No. 13029 of 1985]. It did so, through a Circular dated 6th July 2018, wherein it advised all General Insurance Companies to comply with the Apex Court’s directions. One of these directions was that insurance companies should ensure the existence of a valid PUC prior to renewing vehicular insurance.
The IRDAI notes that the Central Pollution Control Board (CPCB) has expressed concerns on the status of compliance, particularly in the National Capital Region of Delhi (Delhi- NCR). It, therefore, urges the General Insurance Companies to mandatorily comply with the directions, especially in the Delhi-NCR.
As a result, insurers must renew motor vehicle insurance policy only if the vehicle owner provides a valid PUC certificate. The IRDAI has categorically called for strict adherence to this direction.
