Supreme Court Mandates PUC Certificate For Motor Insurance Renewal: Here Are All Details

In a recent circular issued by the (IRDAI) Insurance Regulatory and Development Authority, the general insurance companies are advised to strictly follow the rule. Policyholders will be asked for a valid PUC certificate 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)."

The circular also asks the authorities to give special attention in Delhi in following the new rule. The nation's Capital is known for high pollution levels making it one among the most polluted cities across the world.

The new rule issues for motor vehicle insurance renewal will help kerb the pollution by not providing insurance for vehicles that do not pass the emission test. As a result, those vehicles will not be permitted to ply on roads.

According to Motor Vehicles (Amendment) Act 2019, any person driving a motor vehicle in any public place shall need to produce an insurance certificate, certificate of registration, pollution under control certificate, and driving licence documents to a police officer in uniform authorised in this behalf by the State Government.

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 also needs to be produced.

The PUC document is a certificate of authenticity that the vehicle is producing emission that is under the acceptable limit. The certificate has to be regularly renewed before the validity ends, and is needed for all combustion-engine powered vehicles in the country. However, new vehicles purchased that are within a year from the date of registration do not need a PUC certificate.

Thoughts About The Supreme Court Mandating PUC Certificate For Motor Insurance Renewal

Vehicle pollution is among the most plagued problem for many countries across the world. The problem is a little more in India, as we have more number of motorists. The Indian Government is trying all possible way to kerb the pollution problem and reduce pollution across the country. The new rule will ensure that the PUC certificate is being renewed regularly as the insurance renewal has to be done every year.