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August 30, 2020

Valid PUC not required to settle Motor Insurance Claims, required only for renewal of Insurance

Valid PUC not required to settle motor insurance claims, its required only for renewal of motor vehicle insurance

Pollution under control certification indicates that the vehicle’s emissions are in alignment with standard pollution norms and are not harmful to the environment.

IRDAI, the insurance regulator clarified that a motor insurance company cannot deny any claim for not holding a valid PUC or Pollution Under Control certificate.

1. The IRDA had issued a circular on 6th July, 2018 conveying the directive of the Hon’ble Supreme Court in WP(C) No.13029 of 1985 (M.C. Mehta Vs Union of India) to all General Insurance companies to ensure that the vehicle must have a valid PUC certificate at the time of renewal of motor vehicle insurance.

This has been reiterated through another circular on 20th August, 2020.

2. However, there are some misleading media reports to the effect that if there is no valid PUC certificate at the time of accident, claim under a motor insurance policy is not payable.

On the speculation that if the condition of unavailability of PUC certificate results in the rejection of renewal request, the same condition may also result in the rejection of claim requests, the insurance regulator responded by saying, “there are some misleading media reports to the effect that if there is no valid PUC certificate at the time of the accident, claim under a motor insurance policy is not payable.”

3. 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.

Earlier this month, the IRDAI had advised general insurance companies to ask for valid PUC or pollution under control certificates from policyholders at the time of the renewal of motor insurance policies.

In a circular issued on August 20, 2020, 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).”

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