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Sindh Government Makes Third-Party Vehicle Insurance Mandatory

Sindh Government Makes Third-Party Vehicle Insurance Mandatory

Sindh Government Makes Third-Party Vehicle Insurance Mandatory Across the Province to improve road safety and financial protection. The new rule aims to protect accident victims and support responsible driving. The Sindh government introduced the policy through amendments to the Provincial Motor Vehicles Ordinance, 1965. Officials say the new regulation strengthens third-party insurance for vehicles and ensures better compensation for accident victims. The policy also promotes mandatory car insurance in Sindh as a key road safety measure.

The announcement came from Chief Minister Murad Ali Shah in Karachi. He confirmed that no vehicle will be registered without a valid insurance policy. Vehicle owners must also show insurance documents before paying the token tax. This vehicle registration insurance requirement aims to ensure every vehicle follows the law. The excise department will monitor compliance and enforce the rule across the province.

The new amendment introduces Section 67-H under the Motor Vehicles (Amendment) Act 2026. The law makes third-party liability insurance compulsory for all motor vehicles in Sindh. This step strengthens Sindh’s road safety measures and improves financial security for accident victims. Families of road accident victims can receive accident compensation of Rs. 700,000. Victims suffering permanent injuries may receive permanent disability compensation of Rs. 500,000.

The law also requires insurance coverage during vehicle transfer. Authorities believe this will improve insurance protection for accident victims. The Securities and Exchange Commission of Pakistan (SECP) has praised the initiative. Officials expect other provinces to adopt similar road safety reforms that Sindh has introduced.

The government plans a public awareness campaign to educate drivers about the benefits of compulsory vehicle insurance in Pakistan. Awareness will help drivers understand insurance protection and legal requirements.
In conclusion, the policy marks an important step toward safer roads.

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