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Insurance Regulatory and Development Authority (IRDAI) has issued a notice declaring that policy holders must provide a valid Pollution Under Control (PUC) certificate at the time of the renewal of their policies.
Issued on 20th August 2020, the notice clearly states that motor vehicle insurance providers cannot renew any policy until or unless the owner of the vehicle shows a valid PUC certificate.
Earlier, a PUC certificate was not mandatory at the time of policy renewal. The Supreme Court of India has ordered IRDAI to implement the same.
In 2017, SC ordered IRDAI to ensure that policyholders or vehicle owners show a valid PUC certificate at the time of renewal failed to which their policy should not be renewed. This order came to keep ‘polluting vehicles’ off the Indian roads.
After almost 3 years of the initial order of SC, Environment Pollution Control Authority (EPCA) told the court that currently only ‘onroad’ checks and challans for PUC certificate is operational and despite the court’s order, insurance companies have still not mandated the PUC certificate at the time of renewal.
In order to comply with the norms issued by SC, IRDAI had to issue a new notice ordering insurance companies to follow the new guidelines.
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