The Government of Sindh has officially introduced amendments to the Motor Vehicles (Amendment) Act, 2026. This significant move makes third-party motor liability insurance mandatory for all registered vehicles across the province. Consequently, road accident victims now possess enhanced financial protection.
Through a newly introduced Section 67-H in the Provincial Motor Vehicles Ordinance, 1965, the government established a strict legal framework. Moving forward, authorities will not register, transfer, or accept the annual token tax for any vehicle lacking a valid third-party insurance policy.
This basic, affordable policy covers legal liabilities regarding property damage, physical injuries, or death. Furthermore, the amendment introduces strict, no-fault compensation limits to guarantee timely financial relief. Specifically, the policy provides PKR 700,000 to legal heirs in case of death and PKR 500,000 for permanent disability. As a result, Sindh is now the first province in Pakistan to effectively enforce mandatory third-party motor liability insurance.
To support this historic enforcement, the Securities and Exchange Commission of Pakistan (SECP) operationalized the Motor Insurance Repository (MIR). Essentially, this centralized electronic database records all motor insurance policies issued by registered insurers.
Moreover, this system enables the instant digital verification of insurance policies. Therefore, it ensures strict compliance with minimum legal requirements exactly at the time of vehicle registration. The SECP engaged continuously with provincial governments to reach this milestone, improving overall transparency.
The SECP is already moving forward with further expansion. Currently, the Commission is actively collaborating with the Punjab Provincial Transport Authority. They intend to link the vehicle route permit regime directly with the Motor Insurance Repository. Ultimately, this online validation will strengthen enforcement mechanisms nationwide. The SECP praised the Sindh Government for implementing this vital consumer protection measure and hopes other provinces will rapidly adopt similar steps.
