KARACHI – Sindh government took major step amid rise in road accidents. To ensure victims are not left without support, car insurance has been mandatory for every vehicle. Under the new system, families of people who die in accidents will get compensation.
PPP led provincial government made third-party insurance compulsory for all vehicles across the country’s SouthEastern region. From now on, no vehicle will be registered and no token tax will be accepted without valid insurance.
Sindh CM Murad Ali Shah termed decision as landmark step toward improving road safety and protecting citizens’ rights. He said the new policy will provide critical financial support to poor families affected by road accidents, ensuring victims receive immediate financial relief under the law.
Sindh government also approved no-fault compensation system for road accidents, under which, families of those who lose their lives in accidents will receive Rs700,000 while victims who suffer permanent disability will receive Rs500,000.
To rule out fraud, Sindh activated Pakistan’s first modern digital insurance monitoring system, which officials say will permanently shut the door on fake insurance policies.
Following amendments to Sindh Motor Vehicle Ordinance, a new legal clause has been added to provide financial protection to victims of traffic accidents. Chief Minister directed the Excise Department to ensure strict enforcement of the law. A valid insurance policy will also be required for the transfer of vehicle ownership.
Authorities will launch a special awareness campaign to inform citizens about the benefits of the new law, aiming to improve tax compliance while delivering better services to the public.
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