Pollution Under Control(PUC) Certificate Not Mandatory For Third Party Insurance : Supreme Court Recalls 2017 Direction
The Supreme Court removed the condition it had imposed by an order dated August 10, 2017, that required a Pollution Under Control (PUC) certificate as a prerequisite for availing third-party insurance for vehicles.
The bench comprising Justice AS Oka and AG Masih allowed an application filed by the General Insurance Council, which highlighted concerns about the 2017 order.
Solicitor General of India Tushar Mehta highlighted the potential issues with this condition, noting that without third-party insurance, accident victims would need to seek compensation directly from vehicle owners, who often lack the capacity to pay.
“As rightly submitted by the Learned SG, if the said direction is implemented in its letter and spirit it will have disastrous consequences. Some vehicles will continue to ply without 3rd party insurance. Therefore, we are inclined to allow the application by deleting the aforesaid direction” the court stated in its order.
The court highlighted that neither the Motor Vehicles Act, 1988, nor any other enactment or rules framed thereunder, mandate that insurance companies require a valid PUC certificate for vehicle insurance policy renewal.
The court highlighted that this condition was imposed to ensure that vehicles always have valid PUC certificates to control pollution, and stressed the need for an effective solution. Thus, the court suggested the use of remote sensing technology to track the vehicles in Delhi-NCR..
Background
The Supreme Court had earlier expressed its intention to revisit its 2017 order that mandated a PUC certificate for third-party vehicle insurance.
The Solicitor General noted that non-compliance with third-party insurance was at 55%, making it difficult for accident claimants to receive compensation.
The court acknowledged the need for a balanced approach to ensure vehicle compliance with PUC norms while maintaining third-party insurance coverage.
The court permitted the amicus curiae and the Solicitor General to propose a solution to appropriately modify the 2017 order.
Case no. – Writ Petition (Civil) No. 13029/1985
Case Title – MC Mehta v. Union of India & Ors.