This can be termed as a significant change in the vehicle insurance policy since the mandatory five-year rule came in. From August 20, the Insurance Regulatory and Development Authority of India, better known as IRDA has issued a circular. This circular says that a valid pollution certificate is mandatory if the customer has applied for an insurance claim. It further says that the PUC should be valid when the accident occurred and the same should be a part of the claim documents. Special focus on this ruling’s compliance should be followed in the Delhi-NCR region. This law has been in effect based on the authority’s circular no IRDA/NL/CIR/MISC/104/07/2018 dated July 6, 2018. The Supreme Court of India had issued directions to all general insurance companies to comply with the same as well. The special emphasis on the Delhi-NCR region is because of the fact that this area is considered to be more polluted than the other cities.
More often than not, the pollution levels in Delhi-NCR have been in news because of the alarming levels in the AQI. This move will help in a big way as now people will actively conduct pollution tests of their cars/bikes. As the process is now done online, there are very few chances of manipulating a report. If the vehicle crosses the prescribed pollution levels, a certificate will not be issued. If such a car/bike meets with an accident, the owner will then not be able to claim insurance.
Pollution certificates are mostly ignored by those driving or riding. It is indeed a mandatory document but now tying it up with the insurance claim will be a rigorous step. Claims made before August 20, 2020 might not want the insured to produce a valid PUC though.
What are your thoughts on this move? Will it help curb pollution as intended?
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