News Non-Life06 Jun 2018

India:Insurers uneasy about court order about pollution control

06 Jun 2018

General insurers have expressed reservations about a directive of the Ministry of Road Transport and Highways for them to provide third party insurance cover only to vehicles which have a valid pollution under control (PUC) certificate.

In a directive to general insurance companies on 30 May, the Ministry said, “It must be ensured that no third party insurance policy is issued or renewed without ascertaining the availability of a valid PUC. In the case of transport vehicles, the availability of a valid fitness certification is also mandatory.”

However, insurance companies said it’s not practical to execute the Ministry’s latest directive, reports Indian Express.

A senior executive at a leading general insurance company, said, “We are planning to meet the officials of the IRDAI to explain the difficulties involved in implementing the PUC certificate order.”

The Ministry's directive followed an order dated 10 August 2017 by the Supreme Court stipulating that insurance companies are not to insure a vehicle unless it has a valid PUC certificate on the date of renewal of the insurance policy. The bench had been hearing a public interest litigation case filed by an environmentalist .

The Supreme Court accepted the recommendations of the Environment Pollution (Prevention and Control) Authority (EPCA) to ensure mandatory linking of the PUC certificate with the issue of annual vehicle insurance.

Though it had been expected that the IRDAI might issue instructions to general insurers to comply with the court order, the regulator had refrained from taking the step and took the stand instead that the matter is between Supreme Court and insurers.


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Recent Comments

Insurance foundation of India NGO

This move is a short-sighted move which will only help automobile /motorbike dealers who will sell long-term policy at the time of selling vehicle. The sufferers will be Insurance agents/ brokers. This will result in the sale of 3 rd party insurance and those having a limited budget will not buy OD policy. Ultimately buyer will suffer when the vehicle is stolen or 100% loss in accident

06 June 2018

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