Articles 101 views August 24, 2020

If you own a motor vehicle, there’s something very important you need to know. From now on, it is a must for all the Motor Vehicle Owners to present a Pollution Certificate to get the Insurance. In a circular issued on August 20, 2020, the Insurance Regulatory and Development Authority of India (IRDAI) has directed all the General Insurance Companies in India to obtain a Pollution Certificate from the customers at the time of Motor Insurance Renewal. This Pollution under Control (PUC) certificate will be essential for all the claims related to your vehicle.

From now onward, if a vehicle meets with an accident, and the validity of the Vehicle’s Pollution Certificate is expired, the insurance companies will not be liable to cover any damages. The circular was addressed to all CEOs and CMDs of the General Insurance Companies in India to ensure the compliance of the direction regarding the Pollution Certificate at the time of Insurance. This announcement came after the concerns raised by the Central Pollution Board (CPCB) regarding the status of compliance of the direction of the Supreme Court of India with a special focus on the Nation Capital Region (NCR) of Delhi, also known as Delhi-NCR. IRDAI had issued a similar statement in 2018 also, but back then, there was no special focus on the Delhi-NCR.

The fact is not hidden from anyone that the level of Pollution has been on a rise in Delhi NCR with each passing year. In the past few months, the decline in the pollution level has clearly shown how vehicles contribute most of the pollution in the city. According to the Centre of Science and Environment (CSE), vehicles contribute 40% of the total pollution in the Delhi NCR region. Also, as the government has unlocked Delhi-NCR and other locations of India after strict lockdown measures implemented for nearly two months till May 2020, the pollution level is going to increase soon.

This step of making Pollution Certificate mandatory can be a deciding factor in mitigating this problem of pollution caused by the vehicles. When there will be no insurance claims without the Pollution Certificate, more people will be complied with to obtain their certificates.

What is Pollution Under Control (PUC) Certificate?

Pollution Under Control (PUC) Certificate is a document which states that emissions passed from the vehicle is under the pollution control standards. The Pollution emission standards are fixed for by the CPCB for all the Motor Vehicles in India. If the vehicle successfully meets the pollution test, the vehicle owner gets a PUC certificate. This certificate is proof that the vehicle does not have any emission that is harmful to the environment. PUC Certificate will not be issued if the vehicle is found to be emitting more than the standards set by the CPCB. Hence, such vehicle owners will not be able to renew the insurance.

Customers who have bought brand new vehicles do not require a PUC Certificate. It is only to be taken after one year of vehicle registration. But after one year, at the time of the insurance renewal, motor vehicle owners will also need to present a valid PUC Certificate with other required documents. Without this, the Insurance Companies will not renew the insurance of your vehicle.

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