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Supreme Court to Review 2017 Order on PUC Certificate Requirement for Vehicle Insurance

by Celia

The Supreme Court has signaled its intent to reassess a 2017 directive that mandates the presentation of a Pollution Under Control (PUC) certificate for third-party vehicle insurance. The Court, in a preliminary observation, acknowledged the necessity to strike a balance between PUC regulations and third-party insurance provisions.

During proceedings, Justices AS Oka and Ujjal Bhuyan of the Supreme Court bench sought recommendations from Solicitor General of India Tushar Mehta and amicus curiae Senior Advocate Singh to propose amendments to the 2017 order effectively.

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This move follows an application filed by the General Insurance Council raising concerns over the non-compliance of the Court’s directive issued on August 10, 2017.

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The 2017 order had explicitly stated that vehicles would not be insured by insurance companies unless a valid PUC certificate was provided at the time of policy renewal.

Furthermore, the Court’s directive aimed for full compliance by linking annual vehicle insurance with PUC certificates, a decision influenced by the 73rd Report submitted by the Environment Pollution (Prevention & Control) Authority (EPCA) on the evaluation of the PUC Program in Delhi NCR.

During the proceedings, Solicitor General Tushar Mehta, representing the General Insurance Council, highlighted a 55% non-compliance rate with the Court’s previous directive among vehicles without third-party insurance, leading to complications for claimants seeking compensation in accident cases.

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In response, the Court emphasized the necessity to strike a middle ground to ensure adherence to PUC regulations while maintaining adequate coverage under third-party insurance.

“We authorize the amicus curiae and Solicitor General to propose a solution for appropriate modifications to the August 10, 2017 order,” stated the Court.

The case is scheduled for further hearing on July 15.

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