Don’t have a PUC certificate? You could be denied motor insurance

PUC and motor insurance previously had nothing to do with each other. One could renew their vehicle insurance policy or make a claim against it without having a valid PUC. The only trouble you could get into was if you were pulled over by the police and did not have your PUC certificate. However, you could now face issues if you do not have a valid PUC when purchasing, renewing or filing a claiming on your motor insurance policy.

Why is this so?

Not too long ago, the Supreme Court of India had issued several directives to reduce the pollution caused by vehicular emissions. Among these directives was one that made a PUC certificate necessary for purchase and renewal of motor insurance. The IRDAI has now taken up this directive and informed all insurance companies to insist on valid PUC certificate on issuance & renewals of policies.

What effect will this have?

Experts think that since third party insurance is mandatory, the directive will ensure that motorists keep their PUC certificate up to date and valid. However, others believe that the new mandate will cause people to skip on renewals, which is even more dangerous. They believe that, if an individual does not have a valid PUC, they will put-off the renewal of their insurance policy until they manage to get their PUC certificate. And we all know how the ‘I will do it tomorrow’ attitude works!

Will this mandate last?

We can only wait and watch but general insurance companies are considering an appeal petition stating that PUC certificate norms are not their lookout. R Chandrasekhar, Secretary General, General Insurance Council has been quoted saying “We are working on an appeal petition with our lawyers, which will be filed in the Supreme Court soon”.

What will happen is your policy lapses?

If you do not have a valid PUC and keep pushing your motor insurance renewal for a later date, your policy will eventually lapse. If this happens, you might face multiple consequences. For starters, if you get caught by the police, you could be looking at a very hefty fine. In combination with this, if you still haven’t renewed PUC till then, the fines will start piling up. Also, to renew a lapsed policy, an inspection may be required which is a long and arduous process. Not to mention, you might lose out on your NCBs as well – this could mean going from 50% discounted prices to full premiums once again.

The conclusion.

PUC is more important than you think, especially with the latest move from the IRDAI. Therefore, make sure you get your PUC done and keep it valid at all times. It will ensure you never have any issues with the law or your insurance policy. And if you ask us, we think that move to make PUC mandatory to purchase & renew a motor insurance policy is a good one!

We hope this article has been helpful, good luck and ride/drive safe!