Third-party motor insurance coverage in Sindh has increased by 1,374 percent within three months following the mandatory implementation of insurance for all registered vehicles, according to the Securities and Exchange Commission of Pakistan (SECP).
The regulator said the number of active third-party motor insurance policies rose from 11,200 to 165,064 during the period. The increase follows joint efforts by the SECP and the Government of Sindh to enforce mandatory insurance coverage for registered vehicles across the province.
Under the new framework, all registered vehicles in Sindh must carry third party motor insurance. Vehicle owners without valid insurance coverage will not be able to register or transfer their vehicles or pay token tax.
The insurance scheme provides immediate financial relief to road accident victims under a no-fault compensation mechanism. The policy offers compensation of up to Rs. 700,000 in the event of death and up to Rs. 500,000 in cases of permanent disability, regardless of who caused the accident.
The SECP said Pakistan records between 9,000 and 10,000 reported road traffic accidents every year, making financial protection for victims increasingly important.
The regulator added that third-party motor insurance will help provide timely financial assistance to accident victims and their families.
According to the SECP, around 2.6 million registered vehicles in Sindh will be brought under insurance coverage in phases.
The regulator also said work is underway to introduce mandatory third-party motor insurance in Punjab and other provinces.
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