Pakistan’s car insurance coverage is significantly lower compared to neighboring countries, a comprehensive study by the Securities and Exchange Commission of Pakistan (SECP) has revealed.
The study focused on third-party motor insurance in the country and found that only 3% of vehicles have insurance, raising concerns about financial security for vehicle owners and accident victims.
The study compared Pakistan’s motor insurance with neighboring countries where there’s over 20% insurance coverage.
What are the Causes?
Lack of awareness about motor insurance benefits among car owners is one of the main reasons for the low coverage. Many people do not know that insurance can protect them from financial problems after an accident, which makes them less likely to buy insurance.
Another challenge is the complex legal framework and difficulties in enforcing mandatory third-party insurance. These issues make it harder to encourage people to get insurance.
To improve the situation, the study suggests making changes to the regulations and laws related to motor insurance. The SECP is in talks with the government and insurance companies to create a plan to boost motor insurance coverage together.
The study also recommends increasing financial education for the public. People need to know more about the benefits of motor insurance and the risks of not having proper coverage.
BECAUSE INSURANCE IS NOT HALAL IN ISLAM