News eDaily10 Jul 2018

India:Regulator directs insurers to abide by Supreme Court order

10 Jul 2018

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.


 

| Print | Share

CAPTCHA image
Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.

 

Recent Comments

Cedric Pereira

Very true, those who do not have PUC will go uninsured. I have seen for myself where at the PUC PoS the equipment was not functioning and the attendant issued a PUC certificate without checking the vehicle. These PUC PoS are all owned and operated by some RTO officials using some old and scrapped vehicle by parking them on the roads which is an eyesore and moreso occupies space which is quite a constraint now. P.U.C. means Proper Understanding of Corruption which the common man is unaware of.

10 July 2018

Other News



Follow Asia Insurance Review