KARACHI – The Sindh government has amended the Motor Vehicle Act to make third-party motor insurance mandatory for all vehicles in the province in order to ensure financial protection for victims of traffic accidents.
Under the new amendments, third-party insurance is now a requirement for vehicle registration, transfer, and token tax payment. Vehicles without this insurance will not be registered.
The new system guarantees compensation of up to Rs700,000 in case of fatalities in road accidents, while permanent disability will be covered with PKR 500,000.
The Securities and Exchange Commission of Pakistan (SECP) confirmed that continuous efforts were made to integrate third-party motor insurance into the Vehicle Registration Act. An online database has been developed to verify insurance policies.
SECP added that similar steps are being taken in Punjab to link vehicle route permits with the insurance system.
