NEW DELHI:  Insurance sector regulator Insurance Regulatory and Development Authority of  India (IRDAI) has reiterated the need for vehicles to have valid Pollution Under Control (PUC) certificates if insurance policies are to be renewed. However, following “misleading” rumours that the same condition applied to motor claims, the regulator clarified that claims could not be rejected on the basis of PUC certificates.

The IRDAI circular issued to insurance companies last week adivised them not to renew a vehicle’s insurance policy if the owner is unable to produce a valid PUC certificate. This had first been ordered by the Supreme Court in July 2018.

“Central pollution control board (CPCB) has raised concerns regarding status of compliance of direction of Supreme Court of India in National Capital Region of Delhi (Delhi - NCR). Also ensure that the direction of Supreme Court of India is followed scrupulously with special focus on compliance in National Capital Region of Delhi,” the circular said. 

This will require those seeking renewal to produce PUC certificates at the time of application. A PUC certificate confirms that the vehicle meets the prescribed pollution control standards under law for the relevant model and type of vehicle.“However, there are some misleading reports to the effect that if there is no valid PUC certificate at the time of the accident, claim under the motor insurance policy is not payable,”  it later added.

Motor insurance dips due to lower car sales

Gross direct premium underwritten by non-life insurers declined up to 10 per cent till May, led by a fall in motor insurance due to lower vehicle sales.  According to the General Insurance Council, motor insurance (which includes third party and own damage) has a market share of 26.6 per cent.