The government of Punjab has integrated its public transport route permit system with the insurance repository of the Securities and Exchange Commission of Pakistan (SECP), making the system fully digital.
The integration was formally launched at the SECP, allowing authorities to digitally verify third-party motor insurance for public transport vehicles across the province.
Third-Party Insurance Made Mandatory
Under the new system, third-party motor insurance has been made mandatory for all public transport vehicles operating in Punjab.
Authorities have also linked the issuance and renewal of route permits directly to valid insurance coverage.
This means transport operators must now provide proof of third-party insurance before obtaining or renewing their route permits.
Financial Protection for Passengers and Drivers
Officials say the move aims to strengthen passenger safety and provide financial protection in case of accidents.
Dr. Kabir Sidhu said third-party insurance will protect passengers, drivers, and individuals affected by road accidents by ensuring timely financial compensation.
Insurance Coverage Still Limited
According to officials, the insurance repository currently contains data for around one million vehicles. However, the overall insurance coverage remains limited compared to the total number of vehicles in the country.
Authorities say urgent steps are being taken to expand insurance coverage nationwide.
Legal Reforms Proposed
Officials have also proposed amendments to federal laws to enforce third-party insurance more effectively. The proposed system will follow a “no-fault” compensation model, ensuring that victims of accidents receive timely compensation regardless of who is responsible for the crash.
