Insurance companies cannot reject claims for not holding valid PUC certificate

IRDAI, has clarified that a motor insurance company cannot deny any claim for not holding a valid PUC or Pollution Under Control certificate. PUC certificate is provided to vehicles that undergo the PUC test successfully. The certification indicates that the vehicle’s emissions are in alignment with standard pollution norms and are not harmful to the environment. It is mandatory for all vehicles on Indian roads to carry a valid PUC certification. “It is hereby clarified that not holding a valid PUC certificate is not a valid reason for denying any claim under a motor insurance policy,” said IRDAI in its release dated August 6 regarding valid PUC certificate at the time of renewal of motor vehicle insurance. IRDAI released the clarification amid some misleading media reports stating that there is if there is no valid PUC certificate at the time of accident, claim under the motor insurance policy is not payable by the insurance company. However, a valid PUC certificate is required as a mandatory document at the time of renewal of the motor vehicle insurance. “General Insurance companies must ensure that the vehicle must have a valid PUC certificate at the time of renewal of motor vehicle insurance,” said IRDAI in a circular dated July 6, 2018. This has been reiterated by the insurance regulator through another circular on August 20. In August 2017, the apex court in M.C. Mehta vs. Union of India and Others case had directed insurers not to insure a vehicle unless it has a valid PUC certificate on the date of renewal of the insurance policy. It is mandatory for every vehicle owner to have a valid PUC certificate to comply with the prescribed emission norms. A vehicle without such certificate is liable to be prosecuted under the Motor Vehicles Act.