Third-party motor insurance coverage in Sindh has surged by 1,374 percent within three months following the enforcement of mandatory insurance for all registered vehicles, according to the Securities and Exchange Commission of Pakistan (SECP).
The number of active third-party motor insurance policies increased from 11,200 to 165,064 during the period, reflecting the impact of the joint enforcement efforts by the SECP and the Government of Sindh.
Under the new policy, all registered vehicles in Sindh are required to have valid third-party motor insurance. Vehicle owners without insurance will not be able to register or transfer their vehicles or pay token tax.
The mandatory insurance scheme introduces a no-fault compensation mechanism aimed at providing immediate financial assistance to road accident victims. Under the policy, compensation of up to Rs. 700,000 will be provided in the event of death, while permanent disability cases will be eligible for up to Rs. 500,000, regardless of who was responsible for the accident.
According to the SECP, Pakistan records between 9,000 and 10,000 reported road traffic accidents annually, underscoring the need for financial protection for accident victims and their families.
The regulator said approximately 2.6 million registered vehicles in Sindh will be covered under the insurance scheme in phases. It also confirmed that work is underway to expand mandatory third-party motor insurance to Punjab and other provinces.
