The Sindh government has introduced new changes to the Motor Vehicle Act to make insurance compulsory for all vehicles. The move aims to protect victims of road accidents and ensure financial support during emergencies.
Under the new amendments, third-party motor insurance is now required for several vehicle-related processes. These include vehicle registration, transfer of ownership, and payment of token tax. Authorities say vehicles without valid insurance will no longer be registered in the province.
Officials explained that the decision is designed to improve road safety and provide financial relief to accident victims. In many cases, victims struggle to receive compensation after accidents. The mandatory insurance policy is expected to solve this issue.
According to the new rules, the insurance system will provide compensation of up to Rs700,000 in case of death during a road accident. Victims who suffer permanent disability will be eligible for compensation of up to Rs500,000. Authorities believe this financial coverage will support families affected by serious traffic incidents.
The Securities and Exchange Commission of Pakistan (SECP) played a key role in implementing this reform. The commission confirmed that it had been working for years to integrate third-party motor insurance into the vehicle registration system.
To ensure transparency, an online database has been developed to verify insurance policies. This system will allow authorities to quickly check whether a vehicle has valid insurance before approving registration or other official procedures.
Officials say the digital system will also help prevent fraud and fake policies. It will make the verification process faster and more reliable for government departments.
Meanwhile, similar measures are being considered in other provinces. The SECP revealed that steps are underway in Punjab to connect vehicle route permits with the insurance system. This move aims to ensure that commercial vehicles also follow strict safety and financial protection rules.
Experts believe the policy will strengthen road safety laws in Pakistan. It will also ensure that victims receive timely compensation after accidents.
The Sindh government has urged vehicle owners to obtain valid insurance policies as soon as possible. Authorities warn that vehicles without the required coverage will face registration issues under the updated law.
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