The Insurance Regulatory and Development Authority of India has notified the insurance providers in India, directing them to obtain valid pollution under control (PUC) certificate for the vehicle while renewing the policy.
Additionally, insurance companies will not cover any damages if the PUC certificate is found expired during the time of the accident, the regulatory body stated.
Ahead of this, the Supreme Court had directed insurance companies to not insure a vehicle if it fails to have a valid PUC certificate on the date of the renewal of the policy. Following the same, the IRDAI has issued a circular to all general insurance companies to ensure the SC’s order was implemented with diligence, with special focus on compliance in the Delhi-NCR.
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The circular issued on August 20, 2020, IRDAI read, "Central pollution control board (CPCB) has raised concerns regarding the status of compliance of above direction of Supreme Court of India in National Capital Region of Delhi (Delhi NCR). 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)."
A PUC certificate confirms that the emissions from vehicles meet the pollution control standards. All types of vehicles have prescribed pollution standards/emission. A certificate that is provided to the vehicle owner after the test confirms that the emission levels of the car is within the prescribed safe limit. Therefore, with the help of the certification, you get to know that your vehicle’s emissions are in alignment with standard pollution norms and are not harmful to the environment.
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