KARACHI: In a significant move to ensure financial protection for victims of road accidents, the Sindh government has introduced key amendments to the Sindh Motor Vehicles Act, making third-party motor insurance mandatory across the province. According to the new regulations, third-party insurance is now a prerequisite for several essential vehicle-related processes, meaning no new vehicle will be registered without a valid insurance policy. Furthermore, this requirement now extends to the transfer of ownership and the payment of annual token taxes.
The initiative aims to provide a structured safety net for those affected by traffic accidents. Under the new system, in the event of a death resulting from a road accident, the affected party will be provided an insurance amount of up to Rs. 700,000. In cases of permanent disability, the victim will be entitled to a payment of Rs. 500,000.
The Securities and Exchange Commission of Pakistan (SECP) has been a driving force behind these amendments, working consistently to integrate insurance into the vehicle registration act. To ensure transparency and prevent fraud, the SECP has already developed an online database for the real-time verification of insurance policies. While Sindh takes this leading step, the SECP confirmed that measures are also being taken in Punjab to link vehicle route permits with the insurance system. This move is expected to streamline legal claims and provide immediate financial relief to citizens.
