Can’t deny insurance for lack of PUC certificate, companies tell EPCA

A pilot project is also being considered for Delhi and NCR towns where insurance companies, after insuring the vehicle, inform local enforcement agencies like the police and RTO whether the vehicle in question has a PUC certificate or not.

A vehicle can’t be refused insurance on the grounds that it doesn’t have a Pollution Under Control (PUC) certificate, the Supreme Court-appointed body Environment Pollution (Prevention and Control) Authority (EPCA) was told by insurance industry representatives Monday.

To curb vehicular pollution, the Supreme Court had, on August 10, 2017, passed directions prohibiting the issuance of vehicle insurance without valid PUC certificates. (HT File Photo)

Following this, EPCA has started exploring alternatives through which the number of vehicles registering for PUC and insurance can be increased to 100%, in the National Capital at least. A pilot project is also being considered for Delhi and NCR towns where insurance companies, after insuring the vehicle, inform local enforcement agencies like the police and RTO whether the vehicle in question has a PUC certificate or not. Enforcing agencies could take it forward by issuing challans.

To curb vehicular pollution, the apex court had, on August 10, 2017, passed directions prohibiting the issuance of vehicle insurance without valid PUC certificates. In 2018, following the court order, the Insurance Regulatory and Development Authority of India had issued a notification directing general insurance companies to not insure a vehicle unless it had a valid PUC certificate.

“Insurance can’t be declined to a vehicle even if it doesn’t have a valid PUC certificate as per existing laws. Secondly, how do we check the authenticity of the certificate? Thirdly, refusing insurance will affect accident victims,” a representative from the insurance industry, who attended the meeting, said.

EPCA has also directed insurance companies to share with enforcing agencies details of vehicles which do not come for renew their insurance from the second year onwards. Industry representatives said that while 60% vehicles do not renew their insurance in the second year, the number drops to around 15% by the fourth year.

“We will first try to achieve 100% compliance in Delhi because there is a good network and vehicles’ PUC data are regularly updated on the central Vahan database. If the pilot project proves to be successful, it could be replicated in other cities,” Sunita Narain, member of EPCA, said.