Pollution has been a grave concern all over the world and particularly within the National Capital Region , the issue is quite intense. The amount of polluting of the environment within the NCR happen to be so high that the Government introduced the odd-even system for vehicles on the highway. Even the Supreme Court of India had issued directives that insurance providers shouldn't allow motor insurance renewals with no valid PUC certificate however the practice was seldom followed. So, the insurance coverage Regulatory and Development Authority of India issued a circular on 20th August 2021 mandating insurance companies stick to the Top court Directive. While the IRDAI guideline is meant for renewals across India, special emphasis has been put on the NCR region of Delhi given the high pollution levels in the area.
What does the IRDAII circular state?
The Top court of India, when it comes to MC Mehta v/s the Union of India in July 2021, asked insurance providers to ensure that a vehicle which does not have a valid PUC certificate is not insured on renewals.
The Central Pollution Control Board raised a concern that the Top court mandate of having a valid PUC certificate at renewals was not properly followed by insurance companies. Following this concern IRDAI issued its circular asking insurance providers to follow along with the final Court directive without fail..
The concept of PUC Certificate
PUC Certificate is a certificate which verifies that the emissions coming out from the vehicle meets the norms prescribed in the pollution control standards. This ensures that the vehicle isn't polluting the nearby air when it is being used. The certificate issued is valid for a stipulated tenure which depends upon the kind of vehicle getting used. When the tenure expires, a brand new PUC certificate ought to be availed instantly. When the vehicle does not have a legitimate PUC Certificate, you're responsible for fines if caught by the authorities. For new vehicles, the advantages of PUC certificate is after a year of registration from the vehicle.
The impact from the guidelines
The new guidelines issued by the IRDAI would have an impact on you, the automobile owner, and also the insurance provider. Let’s understand –
- For you
You would have to ensure that your PUC certificate is up-to-date each time your car insurance policy policy expires for renewals. This could allow you to do your behalf for the environment and also avoid traffic penalties to be caught without a valid PUC.
- For the insurance coverage company
Motor insurance renewals would be a bit complex for insurers because the PUC certificate would have to be verified by them before allowing renewals. This may take a moment in verification of the validity of the PUC Certificate and insurance companies would have to come up with methods to seamlessly integrate the verification in the renewal process.
The IRDAI circular stresses around the adoption from the Top court directive especially for cars being renewed in Delhi where pollution is notoriously severe. The guideline is, therefore, considered to be good for environmental surroundings of Delhi and aims to lessen the pollution levels in the area. The way it impacts the quality of air in Delhi is not yet been seen. Moreover, the guideline would be implemented pan India to ensure that pollution quantity of a whole country come down. The IRDAI guideline is, therefore, a welcome move which is crucial in this period when pollution levels have become toxic.
