Is A PUC Certificate Mandatory To Renew Your Car Insurance Policy?

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The pollution problem is particularly acute in the National Capital Region (NCR), which has long been a serious concern. The government implemented the odd-even system for vehicles on the roads due to the extreme levels of air pollution in the NCR. Although the practice was rarely followed, even the Supreme Court of India had instructed that insurance companies should only permit car insurance renewals with a valid PUC certificate. So, on August 20, 2020, the Insurance Regulatory and Development Authority of India (IRDAI) issued a circular requiring insurance companies to abide by the Supreme Court Order. Even though the IRDAI guidelines are intended for renewals throughout India, the Delhi-NCR region has received particular attention due to the area’s high pollution levels. #

What Is Stated In The IRDAI Circular?

In the case of MC Mehta v. the Union of India in July 2018, the Supreme Court of India ordered insurance providers to ensure that vehicles without a current PUC certificate are not insured when policies are renewed. 

The Central Pollution Control Board (CPCB) expressed concern that insurance companies must adhere to the Supreme Court’s order that a valid PUC certificate accompany renewals. IRDAI issued a response circular requesting that insurance providers strictly abide by the Supreme Court’s ruling. #

The PUC Certificate Concept

A certificate known as a PUC (Pollution Under Control) Certificate attests that the emissions leaving the vehicle adhere to the standards outlined in the pollution control standards. This guarantees that when the car is used, it won’t pollute the air around it. The validity of the certificate depends on the kind of vehicle being used and is limited in time. When the tenure is up, a fresh PUC certificate must be obtained immediately. You could face fines if the authorities catch you driving a vehicle without a current PUC Certificate. After a year of the vehicle’s registration, new cars must have a PUC certificate.

The Effects Of The Recommendations

You, the vehicle’s owner and the insurance provider, would be impacted by the new rules issued by the IRDAI. Let’s clarify.

Every time your car insurance policy is due for renewal, you must ensure your PUC certificate is current. Doing this could contribute to environmental protection while avoiding traffic fines for driving without a current PUC and also enjoying all car insurance benefits. #

The Insurance Provider

For insurers, renewing the Bajaj Allianz car insurance policy would become more challenging because they would need to verify the PUC certificate. Verifying the PUC Certificate’s validity may take some time, and insurance companies must find ways to incorporate this verification into the renewal process seamlessly. Make sure you get well versed with how to renew car insurance. *

The IRDAI circular emphasises the need to follow the Supreme Court’s directive, particularly for vehicles being replaced in Delhi, where severe pollution is a well-known problem. As a result, the directive is regarded as advantageous for Delhi’s environment and aims to lower the area’s pollution levels. We have yet to see how it affects Delhi’s air quality. Additionally, the rule would be applied throughout India, lowering pollution levels. #

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#Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


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