According to the new circular issued by the Insurance Regulatory and Development Authority (IRDAI), vehicle owners now will be required to show a valid pollution under control (PUC) while renewing their motor insurance policy.
IRDAI has also made it essential for vehicle owners to have a valid PUC while making any insurance claims and that insurance companies will not compensate for any damages if vehicle owners do not have a valid PUC during the time of an accident.
“Central pollution control board (CPCB) has raised concerns regarding status of compliance of above direction of Supreme Court of India in National Capital Region of Delhi (Delhi NCR). Please ensure that the direction of Supreme Court of India is followed scrupulously with special focus on compliance in National Capital Region of Delhi (Delhi NCR),” said IRDAI in a statement released recently.
The insurance watchdog’s move comes after a Supreme Court ruling in 2018 that directed insurance companies to not insure a vehicle if the owner doesn’t have a valid PUC during the renewal of the policy.