Sindh Announces Huge Compensation for Victims of Road Accidents

The Sindh government is working with the private sector to launch multiple insurance schemes aimed at expanding financial protection and strengthening social safety nets across the province, Chief Minister Syed Murad Ali Shah announced on Tuesday.

Speaking at the first Insurance Association of Pakistan (IAP) and Pakistan Society of Actuaries (PSOA) International Insurance Conference 2026 in Karachi, the chief minister said families of road accident victims will receive Rs. 700,000 in case of death, while those who suffer permanent disabilities will be entitled to Rs. 500,000 in compensation.

He added that the provincial government is also developing a new insurance program that will provide accidental death coverage of Rs. 100,000 for every Sindh resident aged 18 years and above. Additional insurance schemes covering the health and agriculture sectors are also being planned to extend financial protection to more people.

Prime Minister’s Coordinator on Commerce Rana Ahsan Afzal Khan said the federal government is upgrading its agricultural financing program by adding new features to better protect the agriculture sector. He also called for greater use of digital micro insurance through mobile phones to make insurance products more accessible and affordable.

Adviser to the Ministry of Finance and Revenue Adnan Pasha said increasing Pakistan’s insurance penetration to 2 percent of GDP could generate billions of rupees in additional economic activity. He said government initiatives in agriculture, housing, small and medium sized enterprises, and electric vehicles are expected to create new opportunities for the insurance industry.

Insurance Association of Pakistan Chairman Shoaib Javed Hussain said Pakistan’s insurance penetration remains among the lowest in the region, with insurance accounting for only 0.9 percent of GDP compared with around 4 percent in neighboring economies and approximately 6 percent in developed countries.

He said the country’s insurance density stands at just $14 per person, far below the global average of around $60, and urged the industry to expand coverage through innovation, stronger partnerships, and regulatory reforms, particularly in crop and health insurance.

More than 500 insurance executives, actuaries, regulators, policymakers, and international experts attended the conference, which was held under the theme “Reimagining Pakistan’s Resilience: Building a Sustainable Future Through Insurance.”