Sindh Introduces Mandatory Third-Party Motor Insurance for Vehicle Registration, making it compulsory for all vehicles to have valid insurance. The new rule ensures vehicles cannot be registered or ownership transferred without proper third-party motor insurance. This law aims to protect victims of road accidents and streamline vehicle registration procedures in Sindh.
Governor Muhammad Kamran Khan Tessori approved the Provincial Motor Vehicles (Amendment) Bill, 2026, bringing it into immediate effect. Under the law, fatalities in road accidents will be compensated up to Rs700,000, and permanent disabilities up to Rs500,000. Insurance companies must settle claims within 45 days, improving insurance claims settlement efficiency.
The amendment also introduced CNIC-linked vehicle number plates, allowing vehicle owners to retain their registration marks when transferring ownership. This system applies to both private and commercial vehicles, ensuring a smoother transfer process. The Act reclassified vehicles into two main categories: motorcycles and rickshaws, and all types of four-wheel vehicles.
Each vehicle will continue to have a unique Vehicle Identification Number (VIN) based on its chassis. The legislation ensures drivers are financially accountable and encourages safe driving practices. Authorities also emphasize that compliance with provincial motor vehicle regulations is now mandatory.
This move by Sindh not only strengthens road safety but also guarantees fair compensation for accident victims. By enforcing third-party motor insurance, the province sets a benchmark for responsible vehicle ownership. Drivers must now comply with these regulations to complete vehicle registration in Sindh legally and avoid penalties.
