KARACHI: The Sindh government has launched a compulsory third-party motor insurance system, ensuring financial compensation of up to Rs700,000 for families of people killed in road accidents and streamlining payments through an automated process.
Under the new framework, eligible victims and their families will receive compensation without having to pursue lengthy court proceedings, allowing quicker financial relief after accidents.
Officials said the initiative has led to a dramatic rise in commercial vehicle insurance, with the number of policies increasing from nearly 11,000 to over 165,000—an increase of around 1,300%.
The model is now being considered for adoption in Punjab, Khyber Pakhtunkhwa, and Balochistan as part of efforts to strengthen road safety and insurance coverage nationwide.
The government has also introduced life insurance annuity products to provide stable financial support for retirees, while an insurance companies’ consortium has been established to offer crop insurance to farmers.
Earlier, the Sindh government amended the Provincial Motor Vehicles Ordinance, 1965, making third-party liability insurance compulsory for all registered vehicles through the addition of Section 67-H.
Chief Minister Murad Ali Shah said vehicles without valid insurance will neither be registered nor allowed to pay token tax.
He added that families of those killed in road accidents will receive Rs700,000, while victims suffering permanent disabilities will be entitled to Rs500,000 in compensation.
The chief minister also directed the Excise Department to ensure strict implementation of the law and made valid insurance a mandatory requirement for vehicle ownership transfers.
Describing the initiative as a major public welfare measure developed in collaboration with the Securities and Exchange Commission of Pakistan (SECP), Shah called for a province-wide awareness campaign to educate motorists about the benefits and requirements of the new insurance system.
