Recent media reports have been going around as to claims for motor insurance will not be payable if your vehicle does not have a valid PUC certificate. In its recent press release, the IRDAI has recently clarified that the recent media reports regarding such claims are misleading and that not holding a valid PUC is not a valid reason for denying claims.
The apex court however had asked the insurance companies to ensure that the vehicle has a valid PUC at the time of renewal.
Press release by IRDAI
1. The Authority had issued a circular on 6th July, 2018 conveying the directive of the Hon’ble Supreme Court in WP(C) No.13029 of 1985 (M.C. Mehta Vs Union of India) to all General Insurance companies to ensure that the vehicle must have a valid PUC certificate at the time of renewal of motor vehicle insurance. This has been reiterated through another circular on 20th August, 2020.
2. However, there are some misleading media reports to the effect that if there is no valid PUC certificate at the time of accident, claim under a motor insurance policy is not payable.
3. It is hereby clarified that not holding a valid PUC certificate is not a valid reason for denying any claim under a motor insurance policy.