KARACHI: Sindh government has made third-party motor insurance mandatory for all registered vehicles in the province to provide financial protection for victims of road accidents.
The policy has been launched with support from the Securities and Exchange Commission of Pakistan (SECP). Officials said the move is aimed at improving compensation for people affected by road crashes.
According to official data, the number of third-party insurance policies in Sindh has increased by 1,374 percent since the rule was introduced. The figure rose from about 11,000 policies to 165,000 within three months.
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Under the new system, vehicle owners will not be able to register or transfer their vehicles, or pay token tax, without valid third-party insurance coverage.
The scheme offers compensation of up to Rs700,000 in case of death and up to Rs500,000 for permanent disability caused by road accidents. Officials said it also includes a no-fault system, allowing victims or their families to receive payments without waiting for liability decisions.
Government data shows that around 9,000 to 10,000 traffic accidents are reported in Pakistan each year. Officials said the compulsory insurance plan is designed to reduce the financial burden on accident victims.
The Sindh government plans to extend the coverage to about 2.6 million registered vehicles in phases. Authorities also said similar insurance requirements are being prepared for Punjab and other provinces.
