KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has substantially increased the third-party motor insurance compensation for accident victims in Sindh from PKR 20,000 to PKR 700,000. To ensure immediate relief, the updated policy features an automated payout mechanism that completely bypasses lengthy court processes. Driven by these new regulatory frameworks, commercial vehicle insurance policies in the province have experienced an unprecedented 1300% growth, jumping from 11,000 to over 165,000 active policies. Following this successful implementation in Sindh, SECP is now preparing to roll out this third-party motor insurance model across Punjab, Khyber Pakhtunkhwa, and Balochistan.
In addition to motor insurance, SECP has launched several major initiatives to strengthen the country’s broader financial safety net. The commission is introducing dedicated life insurance annuity products for retired individuals to secure their post-retirement income. Furthermore, a specialized consortium of insurance companies has been established to provide robust crop insurance for the agricultural sector. Alongside these developments, Pakistan’s Takaful sector has captured a significant 14% market share, prompting SECP to issue new regulatory guidelines to sustain and streamline its growth.
