The Governor of Sindh, Muhammad Kamran Khan Tessori, has approved the Provincial Motor Vehicles (Amendment) Bill, 2026, making motor insurance mandatory for all vehicles in the province. The bill came into effect immediately, according to a spokesperson from the Governor’s House.
Under the new law, no vehicle can be registered or have its ownership transferred without valid third-party motor insurance. The legislation also sets minimum compensation for road accident victims, with Rs700,000 for fatalities and Rs500,000 for permanent disabilities.
Insurance companies are now required to settle claims within 45 days of an accident. Officials said the initiative aims to ensure fair compensation for third parties affected by accidents and to provide comprehensive insurance coverage for both private and commercial vehicle drivers in Sindh.
The new law follows earlier reforms under the Provincial Motor Vehicles (Amendment) Act, 2024, which introduced CNIC-linked number plates. Vehicle owners now retain their registration marks linked to their CNIC, allowing easy transfer to another vehicle when selling the original one.
The amendment also abolished the previous commercial and private vehicle categories, replacing them with motorcycles and rickshaws, and all types of four-wheel vehicles. No extra fee is charged for CNIC-based plates, while the fee for Ajrak-themed plates is now treated as a transfer fee.
A registration mark is defined as a personalised registration mark, number plate, or any other identifying document assigned to a vehicle owner containing alphanumeric characters. Vehicle Identification Numbers (VIN) remain based on the chassis number of each vehicle.
Experts said that mandatory motor insurance is a significant step toward protecting road users and ensuring financial security in case of accidents. The measure is expected to benefit accident victims, reduce legal disputes, and strengthen the insurance sector in Sindh.
Authorities have urged vehicle owners to comply with the new regulations immediately, warning that failure to secure motor insurance will prevent vehicle registration or ownership transfer.
This initiative aligns Sindh with global practices, where mandatory insurance ensures both driver responsibility and protection for accident victims, creating safer roads and a more accountable vehicle registration system.
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