The IRDAI has issued a directive asking insurance companies not to insure a vehicle unless it has a valid pollution under control (PUC) certificate. The 6 July directive follows an order from the Supreme Court in August 2017 where the issue of making PUC mandatory for insurance was first raised.
Mr G Srinivasan, chairman of India's largest non-life insurer, New India Assurance, said, “The General Insurance Council will approach the Supreme Court about the practical difficulties that insurance companies face on this matter.”
The challenges include ensuring the authenticity of the certificate that is produced by applicants. Another challenge is to ensure compliance at the time of on-line renewal of the motor policy. Information regarding the PUC is not stored in a central server to be authenticated, reports Times of India.
The biggest concern is that those who do not have PUC certificates at the time of purchase or renewal of their motor insurance policy might simply postpone their buying decision and remain uninsured.
These challenges have been communicated to the Ministry of Road Transport and Highways and the insurance regulator.