To begin with, let us understand, what is PUCC–Pollution under Control Certificate?
In simple words, this is a certificate which certifies as to whether the emission level of polluted gases from combustion engine of a vehicle is within the prescribed limit of pollution standards or not.
Recently, its requirement has generated quite a heat when IRDAI issued a circular dated 20 th August 2020 to the CEOs and CMDs of all the General Insurance Companies thereby reiterating the directives of Hon’ble Supreme Court to ensure that the Valid PUC Certificate must be compulsory at the time of renewal of Motor Policies.
In the back drop of this circular is the order of Hon’ble Supreme Court issued to insurance companies in the year, 2018 in the writ petition – ‘MC Mehta v/s Union of India’, directing them not to renew the Motor insurance policies for vehicles without a valid PUC certificate (PUCC). Hence, in compliance of this ruling, the IRDAI issued its circular on 6th July 2018 for implementing these directions of Apex court. To ensure the compliance, the aforesaid circular also states that insurance companies shall not cover any own damage claims on vehicles that do not have a valid PUCC at the time of the accident.
However, recently, Pollution Control Board and the EPCC (Environment and Pollution control committee) constituted by Supreme Court to monitor the compliance of its Orders passed under the above writ petition, has shown its concerns while reporting the progress in this regard before the Supreme court specially about the Delhi –NCR.
Consequent to that, IRDAI, vide its circular dt 20th August 2020, reiterated its earlier advisories issued vide circular date 6th July,2018, to ensure that the aforesaid directions of Supreme Court of India are scrupulously followed with focus on compliance in National Capital Region of Delhi (Delhi NCR). It is worth mentioning that the Delhi NCR has been grappling with alarming air pollution year-on-year and dangerous levels of toxic continue to affect millions of lives. As per CSE (Centre for Science and Environment), the vehicles alone contribute 40 per cent of the total pollution load in Delhi.
Unfortunately, this circular was mis-construed in some media reports stating that claim under the motor insurance policy shall not be payable if there is no valid PUC certificate at the time of accident. The IRDAI, vide its Press release dt. 26/8/2020, has clarified its stand in this regard which says that not having a valid PUC certificate will not be a valid reason for denying any claim under a motor insurance policy. However, a valid PUC certificate is required as a mandatory document at the time of renewal of the motor vehicle insurance.
Hence, the insurance companies will ask you to show the valid PUC or pollution under control certificates at the time of renewal your motor insurance policy.
Electric vehicles, of course, are exempt from requirement of a PUCC. Other vehicles that do not require a PUCC are brand new vehicles. However, this is only for their first year of usage; after that one has to regularly get the PUCC and get it renewed on or before its date of validity.
Whilst on the subject, one question has crept in my mind that needs to be examined and analysed by the Central Govt.— Whether the PUCC is still mandatory after the introduction of BS-IV and BS-VI level emission compliant engines in the vehicles?