General insurers are planning to file an appeal petition in the Supreme Court contending that compliance of pollution certificate norms is not the lookout of the industry.

“We are working on an appeal petition with our lawyers, which will be filed in the Supreme Court soon,” said R Chandrasekhar, Secretary General, General Insurance Council.

Until then, the industry is working on following the new directive to mandating that PUC is a must for motor insurance, he told BusinessLine.

The move comes following a Supreme Court order last year under which insurance companies were directed not to insure a vehicle unless it has a valid PUC certificate on the date of renewal of the insurance policy.

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The Ministry of Road Transport and Highways and the Insurance Regulatory and Development Authority of India (IRDAI) have recently asked general insurers to follow the order.

The government is hopeful that such a move would ensure that polluting vehicles do not get motor insurance and in turn will not be driven. Getting a motor insurance is mandatory for vehicle owners. However, general insurers have been concerned that the move would impact insurance growth in the country.

Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard General Insurance, at the company’s first quarter results call had said the move would impact insurance penetration. “The industry is working on the provisions and the council is also looking into it,” he had said.

An executive with another general insurer said that ensuring compliance of PUC should be the responsibility of the Ministry of Road Transport and Highways and the traffic police. “Most vehicle owners know about the PUC requirements. More stringent fines and stricter compliance should be done. It is not something that general insurers can do,” he said.

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