Motor Insurance Claim Cannot Be Denied For Not Holding A Valid PUC Certificate: IRDAI

The Insurance Regulatory and Development Authority (IRDAI) has issued a clarification that not holding a valid Pollution Under Control [PUC] certificate is not a valid reason for denying any claim under a motor insurance policy. This clarification has been issued through a press release taking note of some misleading media reports [including social media posts] which said that if there is no valid PUC certificate at the time of accident, claim under a motor insurance policy is not payable.
Through the circular issued on August 20, 2020, IRDAI had advised general insurance providers to not renew any motor vehicle’s insurance policy without the owner providing a valid PUC certificate, as per Supreme Court’s Orders. The Supreme Court, on August 10, 2017, had passed orders in the MC Mehta case mandating insurance providers to obtain valid PUC certificates for the vehicle while renewing its motor insurance policy. It was stipulated that vehicle owners who don’t have a valid pollution certificate will not be able to renew the insurance of their vehicles.