The Sindh government has made third-party motor insurance compulsory for all registered vehicles in the province, in a move aimed at improving financial protection for victims of road accidents.
The policy has been introduced with the support of the Securities and Exchange Commission of Pakistan (SECP).
According to officials, the number of third-party motor insurance policies issued in Sindh has increased by 1,374% since the requirement was introduced, rising from around 11,000 to 165,000 within three months.
Under the new rules, vehicle owners will not be able to register or transfer their vehicles, or pay token tax, without obtaining valid third-party insurance.
The scheme provides compensation of up to Rs700,000 in the event of death caused by a road accident and up to Rs500,000 in cases of permanent disability.
Officials said the insurance also includes a no-fault compensation mechanism, allowing victims or their families to receive financial assistance without waiting for liability to be established.
According to government figures, between 9,000 and 10,000 reported traffic accidents occur in Pakistan each year. Officials say compulsory third-party insurance is intended to reduce the financial burden on people affected by road crashes.
The Sindh government plans to extend insurance cover to around 2.6 million registered vehicles in phases. Authorities also said work is under way to introduce compulsory third-party motor insurance in Punjab and other provinces.
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