The Sindh government has introduced legal amendments that set fixed “no-fault” compensation for road accident victims while also tightening enforcement of mandatory third-party vehicle insurance across the province.
The development was acknowledged by the Securities and Exchange Commission of Pakistan (SECP), which said Sindh’s changes were made through amendments to the Motor Vehicles (Amendment) Act 2026.
Under the revised framework, third-party liability insurance will be required for vehicles registered in Sindh, and compensation limits have been defined to ensure quicker financial relief for victims and their legal heirs.
According to the SECP, the amendment introduces a new Section 67-H in the Provincial Motor Vehicles Ordinance, 1965. It requires that no vehicle can be registered or transferred, and annual token tax cannot be paid, unless there is a valid insurance policy covering third-party risks.
A key feature of the reform is the introduction of no-fault compensation limits. Under the updated rules, compensation has been set at Rs. 700,000 in the event of death and Rs. 500,000 for permanent disability.
The SECP said Sindh has become the first province to strengthen its legal framework in a way that enables effective enforcement of mandatory third-party liability insurance.
To support compliance, the commission has operationalized the Motor Insurance Repository (MIR), a central electronic database that records motor insurance policies issued by insurers registered with the SECP and allows digital verification of coverage.
The regulator added that it has been engaging provincial governments to improve enforcement nationwide and said work is underway with the Punjab Provincial Transport Authority to link route permits with the MIR for online validation of insurance policies.
