KARACHI: The government of Sindh has made third-party liability insurance compulsory for all vehicles registered in the province in a move aimed at improving road safety and providing financial protection to accident victims.
Chief Minister Murad Ali Shah announced that vehicles will not be registered without a valid insurance policy, and token tax payments will also be disallowed for uninsured vehicles.
Under the new policy, families of individuals who die in traffic accidents will receive compensation of Rs700,000, while those who suffer permanent disability will be eligible for Rs500,000.
The measure follows amendments to the Provincial Motor Vehicles Ordinance 1965, introducing a new Section 67-H that requires third-party liability insurance for motor vehicles.
Officials say the initiative is designed to strengthen financial safeguards for victims of road accidents and promote safer driving practices. With the amendment, Sindh has become the first province in Pakistan to make such insurance mandatory through its motor vehicle laws.
The chief minister also directed the provincial excise department to ensure strict implementation of the regulation. In addition, possession of a valid insurance policy will now be required for the transfer of vehicle ownership.
Murad Ali Shah noted that the new law will provide much-needed support to families affected by road accidents. He added that the provincial government introduced the public welfare initiative in collaboration with the Securities and Exchange Commission of Pakistan.
He also instructed authorities to launch a public awareness campaign so citizens understand the benefits and requirements of the new regulation.
The Securities and Exchange Commission of Pakistan welcomed the amendment to the Motor Vehicles (Amendment) Act 2026 and expressed hope that other provinces in the country would adopt similar measures.
