PUC Certificates made Mandatory for Motor Insurance RENEWAL [Update]

[Update] 26th August 2020 – Source

IRDAI (Insurance Regulatory And Development Authority Of India) has issued a circular to all General Insurance companies to ensure that a vehicle must have a valid PUC at the time of renewal of motor insurance.

What is PUC?

• PUC is a document which verifies whether a designated vehicle meets the current pollution control standards or not.
• Pollution standards are emission levels assigned to each vehicle category.
• The PUC CERTIFICATE can be acquired via an authorised Pollution Check Centre located at petrol pumps.

Read More: Delhi gets its own Electric Vehicle Policy, Incentives of up to Rs 1.50 lakh

Do Electric vehicles also need to have a PUC Certificate?

• All-Electric vehicles do not require a PUC certificate. However, it is mandatory for every other vehicle to have a valid PUC.
• Apart from EV’s, a brand new vehicle is also exempted from acquiring a PUC for their first year, after which it is mandatory to get a designated PUC certificate renewed after every 6-months.

Must Read: Supreme Court extends order barring registration of BS4 vehicles

Why has IRDAI issued this rule?

• Earlier, the Supreme court had directed all major Insurance companies to avoid issuing any renewal unless the designated person shows a valid PUC on the date of the policy renewal.
• The issued circular also states that any insurance will not cover on any insurance claims on a damaged vehicle if the person fails to show a valid Pollution Under Control certificate. [See Press Release]

Suggested Read: NGT pushes for urgent implementation of Vehicle Scrapping Policy in India

What are the consequences of not having a valid PUC?

• Well, if you still wish to carry an invalid PUC, you will have to pay a hefty fine of Rs 10,000 for the first violation.
• That’s not all! If found guilty for the second time you can face up to 6 months in prison with a fine of Rs 10,000.