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Renewal of Vehicle Insurance- Pollution Under Control (PUC) Certificate mandatory

September 8, 2020

 

The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular dated 20th August, 2020[1] , whereby it has asked all the general insurance companies in India to obtain a valid Pollution under Control (PUC) Certificate for vehicles at the time of renewal of insurance policy. The IRDAI’s circular has been issued in pursuance of the order passed by the Hon’ble Supreme Court of India in M.C. Mehta v. Union of India[2], wherein the Apex Court had ordered insurance companies not to insure a vehicle unless it has a valid PuC certificate on the date of renewal of the motor insurance policy.

IRDAI directs Insurance Companies to follow Supreme Court’s direction in M.C. Mehta case

  • IRDAI in its circular addressed to all general Insurance Companies to ensure that the direction of Supreme Court of India is followed scrupulously with a special focus on compliance in the Nation Capital region of Delhi, due to the increasing vehicular pollution in the capital region.
  • The Central Pollution Control Board (CPCB) has raised concerns about the compliance to the Apex Court’s direction and status of its implementation especially in the National Capital Region of Delhi in view of alarming impact of air pollution on health of people in Delhi.

Air pollution in Delhi NCT is no less than a traumatic experience for people residing here. Every year around October, Delhi NCT witnesses alarming increase in air pollution and vehicular pollution plays an immense role in aggravating the same. Hence, issuance of Rules that would ensure plying of vehicles which comply with environmental norms and standards like obtaining PuC Certificate at time of renewal of vehicle insurance is a welcome move.

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[1] https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo4221&flag=1

[2] Writ Petition (Civil) No.13029 of 1985

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