Fact Check: Claim that accident damages would not be covered if pollution certificate is not valid is FALSE

Hyderabad: Recently, the Insurance Regulatory and Development Authority of India (IRDAI) has been in the news after it issued a new circular about the renewal of vehicle insurance adhering to the Supreme Court directions.

Several social media users have shared the circular along with the claim that "Please be informed that for all insurance claims valid pollution certificate is mandatory. If the vehicle's pollution certificate validity is expired during the time of the accident, insurance companies will not cover the accident damages hereafter *20th August 2020*".

According to the claim, the insurance companies will not cover the accident damages, if the pollution certificate expires.

Fact Check:

The claim that the insurance companies will not cover the damages if the pollution certificate has expired at that time is FALSE.

The circular issued by the IRDAI on August 20, 2020, states that the PUC certificate at the time of renewal of Insurance of Vehicle – Directions given by Hon'ble Supreme Court of India.

But there is no mention of NOT covering the damages if the PUC is invalid during accidental damage.

The IRDAI has issued a new circular to insurance providers in India, asking them to obtain valid pollution under control (PUC) certificate for the vehicles while renewing the policy.

Earlier, the Supreme Court had directed insurance companies not to insure a vehicle unless it has a valid PUC certificate on the date of renewal of the insurance policy. IRDAI has issued a circular to all general insurance companies to ensure that the direction of the Supreme Court of India is followed scrupulously with a special focus on compliance in the Delhi – NCR.

In a circular issued on August 20, 2020, the IRDAI said, "The Central Pollution Control Board (CPCB) has raised concerns regarding status of compliance of above direction of Supreme Court of India in the National Capital Region of Delhi (Delhi - NCR). Please ensure that the direction of Supreme Court of India is followed scrupulously with special focus on compliance in the National Capital Region of Delhi (Delhi - NCR)," as per the circular.

The Central Pollution Control Board (CPCB) has recently raised concerns about the compliance to the apex court's direction and status of its implementation especially in the National Capital Region of Delhi.

Therefore, though the IRDAI has asked the insurance companies to check for a valid PUC while renewing the insurance on vehicles, the claim that it instructed the companies NOT to issue accident damages is FALSE.