The number of third-party motor insurance policies issued in Sindh has increased from 11,200 in March 2026 to 452,515 by November, a rise of about 3,940 percent in eight months, according to the Securities and Exchange Commission of Pakistan (SECP).
In a statement issued on Friday, the SECP said the increase followed amendments made in March to Sindh motor vehicle registration rules, which made third-party insurance mandatory for vehicles registered in the province. The Sindh government introduced the reform with the support of SECP.
To support implementation, the SECP set up the Motor Insurance Repository, a digital system that allows authorities to verify insurance policies. The repository is linked to Sindh’s vehicle registration and taxation systems, and has helped increase policy issuance since the legal change.
The SECP said third-party motor insurance provides financial protection to people affected by road accidents. Subject to the policy terms and applicable law, it covers liability for injury, death or property damage caused to others. It does not cover damage to the policyholder’s own vehicle.
Sindh has nearly 2.6 million registered vehicles, which leaves considerable room to expand coverage. The SECP said continued public awareness, effective enforcement and accessible insurance products would be needed to sustain the progress.
SECP Chairman Dr Kabir Ahmed Sidhu said third-party motor insurance helps road accident victims and their families access compensation. He said the commission is engaging with the federal government and the governments of Punjab and other provinces to support similar laws and enforcement measures, with the aim of making the insurance mandatory across Pakistan.
