Ask Money Today: Is a PUC certificate required for claims made under auto insurance?

Question: I live in New Delhi. I renew my PUC regularly but there had been a few instances where I forgot to renew it on time. Can you tell me if a PUC certificate is required for claims made under motor insurance in case of an accident?

-- Vidhi

By Sanjiv Bajaj, Joint Chairman and MD, Bajaj Capital Ltd.

Air we breathe in is an essential element needed for healthy living. With pollution levels in India coming under severe, very poor, poor, and moderate for most cities, it is critical to take all possible steps to save the environment and keep the air clean. Keeping your car validated as an environmentally friendly vehicle with the PUC certification is extremely critical in this matter.

A valid PUC or “Pollution Under Control” certificate is needed for vehicles throughout the nation, made mandatory by law. Though PUC is mandatory for vehicles is a fact but there is a misconception in public stating the need for it for insurance claim settlement. So, it is important to bring clarity to vehicle owners for the right decision-making.

There is no relation between a “Pollution under Control” certificate and the KYC criterion for expediting your insurance claim settlement process. Knowing the purpose of the PUC will clear the confusion.

A PUC or Pollution under Certificate allows you to know the emissions of your car/ vehicle and whether they are in permissible range or not,  helping you come to a decision on whether your vehicle qualifies to be safe to drive upon or not, environmentally. A vehicle owner can get this PUC certificate through any authorized emissions testing facility. A PUC certificate shows whether the emitted carbon monoxide levels by the vehicle are under the permissible levels or not.

The Supreme Court’s ruling on the PUC says that a PUC Certificate is one of the main documents needed for driving, applicable throughout the nation. Also, having a valid PUC certificate is compulsory for vehicles made mandatory by the Govt. of India under the Central Motor Vehicles Act.

As per the IRDA guidelines, insurers are instructed to refrain from insuring in the absence of a valid Pollution Under Control certificate. So as a vehicle owner, one needs to ensure that a valid PUC is there at the time of renewing insurance. It does not affect your claim. Not having a valid PUC (Pollution Under Control Certificate) does not signify that your insurance claim will be rejected. Moreover, as of now, there is no relation between the PUC certificate and a newly adopted KYC standard for facilitating insurance claims.

There are, however, exceptions for the certification such as, currently, no PUC is needed for electric vehicles in India. Knowing the best way to keep your vehicle updated through the right insurance with add-on covers and valid certifications are some of the essential aspects to derive the best out of your vehicle.

(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts).

Also read: Time to shift from fixed deposits to debt funds; here’s why

Also read: What is surcharge on income tax? Here's how you can calculate it