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ICICI Lombard Expert Blog

Road Transport Ministry Ensures No Issue of Insurance Without PUC Certificate

May 30 2018

The Ministry of Road Transport and Highways has asked the Insurance Regulatory and Development Authority of India (IRDAI) to direct all companies to renew or issue insurance of vehicles only if the owners have a ‘pollution under control’ (PUC) certificate.

A letter was issued by the ministry on 29th May, 2018, stating that in accordance with a direct order from the Supreme Court on 10th of August, 2017, insurance companies are to refuse to insuring vehicles that do not have “a valid PUC certificate” when renewing the policy. Additionally, a fitness certificate is also required for all registered vehicles.

According to existing Indian law, a vehicle is allowed to travel only if it has at least a third-party insurance. However, due to lax implementation this rule is widely disobeyed. Following the new rule, a PUC certificate will be compulsory in order to get insurance for a vehicle.

The road transport ministry has also asked IRDAI to direct companies to meet the June 15 deadline of submitting their compliance reports. Separate letters will be written to around two dozen insurance companies by the Ministry in this regard.

A deadline of April 2019 has also been given by the Ministry for the emission reports of all vehicles to be put online.

*Source: Times of India

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