The Sindh cabinet has decided to enforce mandatory Motor Third-Party Insurance across the province from the next financial year after reviewing its implementation framework.
The initiative aims to provide compensation to third parties affected by road accidents and to ensure insurance coverage for private and commercial vehicle owners in Sindh.
Sindh Chief Minister Syed Murad Ali Shah chaired the cabinet meeting, which was attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah, and concerned officials.
The cabinet approved proposals to amend the Motor Vehicles Ordinance, 1965, and decided to place them before the Sindh Assembly for approval. It also endorsed amendments to Sections 19 and 20 of the Motor Vehicles Act, 1939, to exempt motorcycles from mandatory third-party insurance.
On the chief minister’s instructions, the Excise Department consulted the Insurance Association of Pakistan to simplify the insurance claims process. The chief minister directed the department to ensure compensation in cases involving insured vehicles and to establish insurance facilitation desks with uniform premium rates.
The cabinet also approved the launch of a 24-hour helpline and the provision of assistance through insurance surveyors for accident victims and their legal heirs.
In addition, the chief minister approved a reduction in stamp duty from Rs. 500 to Rs. 50 and a cut in sales tax on third-party motor insurance from 15 percent to 5 percent. Following approval by the Sindh Assembly, the province will implement mandatory Motor Third-Party Insurance from the next financial year.
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That would be a good initiative if implemented properly, at the same time the insurance coat should not be high enough to afford.