Supreme Court Seeks Suggestions To Modify 2017 Order Mandating PUC Certificate For Vehicle Insurance

The Supreme Court recently expressed an intention to revisit its 2017 order which made a Pollution Under Control (PUC) certificate mandatory for third party vehicle insurance. The Court made a prima facie observation regarding the need to balance the PUC norms and third party insurance.

The Court has sought suggestions from Solicitor General of India Tushar Mehta and the amicus curiae Senior Advocate Singh to propose a solution to the issue in order to effectively modify the 2017 directions.

The bench of Justices AS Oka and Ujjal Bhuyan was hearing an application was filed by the General Insurance Council which flagged concerns of non-compliance of the Court's order dated August 10, 2017. 

“It is made clear that the insurance companies will not insure a vehicle unless it has a valid PUC certificate on the date of renewal of insurance policy,” the order of 2017 said. 

As per the said order, the Court recorded that 100% compliance shall be ensured by linking annual vehicle insurance with PUC (Pollution Under Control) certificates. This direction was given in light of the 73rd Report filed by the Environment Pollution (Prevention & Control) Authority (EPCA) on the assessment of PUC Programme in Delhi NCR. 

Solicitor General Mr Tushar Mehta (SG) appearing for the General Insurance Council submitted that in light of the previous direction of the Top Court, there exists non-compliance by 55% of vehicles that have not signed up for third-party insurance. Thus in the event of accidents, claimants find it difficult to get compensation. 

Taking note of the same, the Court observed that a middle ground has to be taken to ensure a balance between compliance with PUC norms and vehicles having third-party insurance. 

" Prima facie, we are of the view that a right balance will have to be struck while ensuring that vehicles remain compliant with PUC norms. But at the same time, all vehicles must have a third-party insurance." 

" We permit the learned Amicus Curiae and the learned Solicitor General to come out with a solution so that appropriate modification can be made to the order dated 10th August, 2017." 

The matter will now be listed on July 15

Case Details : MC Mehta v. Union of India & Ors., WP(C) No. 13029/1985 

Click here to read the order