What is the Full Form of PUC in Insurance?
The Full Form of PUC in insurance is a Pollution under control certificate. This is a document that confirms the vehicle’s emission levels. Every vehicle, whether a car or a bike used for personal or business purposes, must have this certificate. Because fuel-powered vehicles release dangerous chemicals such as carbon monoxide, it is critical to monitor their emission levels.
Significance of PUC certificate in Insurance:
Many jurisdictions require automobiles to have a PUC certificate. Ensuring that a vehicle has a valid PUC certificate assists both the insurer and the insured in complying with environmental requirements. Some insurers may demand a valid PUC certificate to issue or renew a vehicle insurance policy. This guarantees that the insured vehicle fulfills environmental requirements, which may be a requirement for insurance eligibility.
Will the insurance claim be rejected if there is no PUC certificate?
No, according to the IRDAI’s circular of August 26, 2020, an insurance firm cannot decline a vehicle insurance claim in the absence of a valid PUC certificate. However, this does not imply that the PUC certificate is unnecessary. All vehicles must operate on public roadways. However, if you do not have a valid PUC certificate, your insurance claim will remain unaffected.