Vehicle owners will need a valid PUC certificate to renew motor insurance, says IRDAI

The insurance regulator IRDAI has advised general insurance companies to ask for valid PUC or pollution under control certificates from policyholders at the time of the renewal of motor insurance policies.

In a circular issued on August 20, 2020, Insurance Regulatory and Development Authority (IRDAI) 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). Please ensure that the direction of the Supreme Court of India is followed scrupulously with a special focus on compliance in the National Capital Region of Delhi (Delhi – NCR)."


It is worth mentioning that the Delhi NCR has been grappling with air pollution year-on-year and dangerous levels of toxic continues to affect millions of lives. Last year, Anumita Roy Chowdhury, executive director (research and advocacy), Centre for Science and Environment (CSE) had said that vehicles contribute 40 per cent of the total pollution load in the city.


What is PUC certificate?

It is a certificate that vets that the emissions passed from vehicles meets the pollution control standards. The pollution standards/emission levels are fixed for all types of motor vehicles in India


What does the latest norms on motor insurance say?

Sajja Praveen Chowdary, Head-Motor Insurance, Policybazaar.com: "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 the 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 a focus on compliance in the National Capital Region of Delhi (Delhi – NCR).


"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," Chowdary added.


Naval Goel, CEO& Founder of PolicyX.com said: “Buyers need to have a valid PUC at the time of renewal of motor insurance. It will add a layer of complexity as it increases the requirement of documentation at the time of selling motor insurance. It has been done to comply with the order of supreme court under which it had directed all insurer to not renew the plans incase the motor do not carry a valid PUC certificate.”


According to Motor Vehicles (Amendment) Act 2019, any person driving a motor vehicle in any public place shall, on being so required by a police officer in uniform authorised in this behalf by the State Government, produce— Certificate of insurance, Certificate of registration, Pollution under control certificate, Driving licence, In the case of a transport vehicle, also the certificate of fitness referred to in section 56, and the permit. And, any certificate or authorisation of exemption that has been granted under this Act, relating to the use of the vehicle.

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