The Supreme Court of India recently rebuked the Insurance Regulatory and Development Authority of India [IRDAI] for not complying to its norms. The apex court had recently ordered insurance providers to not issue car insurance covers to those vehicles that didn’t have PUC certificates. The order was passed mainly to curb the growing problem of air pollution in the country. However, the Supreme Court found that the insurance companies were readily issuing new plans as well as allowing policyholders to renew car insurance without checking the PUC certificates.
Following norms, says IRDAI
The IRDAI, which is the apex insurance regulatory body in India, said that the car insurance sector was merely following the guidelines of the Insurance Act. The act states that every vehicle on the roads of India needs a basic third-party cover. The IRDAI or the insurance providers cannot refuse a car insurance renewal request based on the PUC status.
Not following orders, complains Supreme Court
The Supreme Court, however, is not willing to listen to any of this. The court has now strictly ordered the insurance sector to follow the car insurance renewal norms with immediate effect. The PUC certificate is an absolute must. Unless a vehicle has a PUC certificate, the owner cannot renew car insurance. And since car insurance is compulsory, the vehicle cannot be driven on the roads.
What exactly is the PUC?
The PUC is the Pollution Under Control certificate. As a vehicle owner, you need to get this certificate renewed from time to time. For this, your vehicle’s emission is tested and if found suitable, the certificate is issued. If there is a fault in the engine or the fuel exhaustion, the pollution will be a lot. You need to get it fixed and then get the PUC. You cannot have an insurance renewal unless the PUC is obtained.
Why is the Supreme Court making it a requirement?
There are two main reasons why the apex court is so insistent on having a PUC clearance for getting a car insurance renewal. They are:
- Forces people to get a PUC – Air pollution is one of the largest mass killers of India. Thousands of people die because of this each year. And since vehicles majorly contribute to air pollution, it is extremely important to keep the emissions under control. If you cannot get a car insurance cover without a PUC, you will be forced to keep the pollution in check. If you don’t and your policy lapses, you will have to pay a higher car insurance premium to get it reinstated. So, the SC ruling is a healthy one to ensure every vehicle keeps its pollution levels in check.
- Makes it easier to maintain air pollution levels – As stated, air pollution is dangerous. The SC order, therefore, is a positive step to maintain the air pollution levels. It is a handy way to ensure the vehicles don’t emit harmful gasses and the air we breathe remains clean. It will also keep a tab on the number of vehicles that violate the pollution norms and allow the authorities to take suitable action against them.
This is the main logic behind the Supreme Court’s recent ruling regarding PUC and car insurance renewals, and its insistence that all insurance companies follow it.
The bottom line
Car insurance is compulsory in India. You have to pay the car insurance premium and get the plan renewed before it expires. However, you need a PUC certificate before you do so. The Supreme Court insists this. But, since the IRDAI is bounded by the Insurance Act, it is forced to issue the plans even without the PUC certificates.
You should however be a good citizen and get the PUC done on your part as it is good for your vehicle and also for the environment. Get it done and then renew your car plan in the most suitable and lawful manner possible.