In a major move to modernize Pakistan’s motor insurance sector, the Securities and Exchange Commission of Pakistan (SECP) has directed all non life insurers and general takaful operators to participate in the Motor Insurance Repository (MIR). The initiative aims to strengthen enforcement of mandatory motor third-party insurance and ensure accurate, secure, and easily verifiable policy data across the country.
The Motor Insurance Repository (MIR) is a centralized electronic database established under a Memorandum of Understanding between insurance companies, takaful operators, and the Central Depository Company (CDC). It enables the secure storage, validation, and accessibility of motor insurance policies and claims data. Insurers underwriting motor vehicle insurance are now required to sign a Service Level Agreement (SLA) with the CDC within 60 days and share complete and accurate policy data in accordance with the SLA. This data may be shared with relevant federal and provincial authorities for policy validation, while maintaining strict confidentiality and security requirements.
This regulatory measure is a key step toward strengthening the enforcement of mandatory motor third-party insurance across Pakistan. A centralized and validated data repository will allow authorities to verify insurance coverage efficiently, addressing significant gaps in compliance.
The SECP remains committed to promoting digital transformation, strengthening compliance, safeguarding public interest, and enhancing the integrity and efficiency of Pakistan’s insurance ecosystem.
