The Sindh government has taken a significant step towards improving road safety and financial protection for accident victims by making third-party liability insurance compulsory for every vehicle registered within the province. This new regulation, announced by Chief Minister Murad Ali Shah, stipulates that no vehicle will be registered or allowed to pay token tax unless it holds valid third-party insurance coverage.
In a move aimed at providing immediate relief to families affected by road accidents, the provincial government has also introduced fixed compensation amounts. Families of those who lose their lives in traffic incidents will now receive Rs. 700,000, while individuals suffering permanent disabilities due to accidents will be entitled to Rs. 500,000. This compensation framework is designed to offer timely financial assistance and reduce the hardships faced by victims and their dependents.
The legal basis for this policy lies in the recent amendment to the Provincial Motor Vehicles Ordinance of 1965, where a new Section 67-H has been incorporated. This addition mandates third-party liability insurance for all motor vehicles, marking Sindh as the first province in Pakistan to embed such a requirement directly into its motor vehicle legislation. The amendment reflects a broader commitment to enhancing road safety standards and ensuring that victims receive adequate financial protection.
Chief Minister Murad Ali Shah has instructed the Excise Department to rigorously enforce this new law, emphasizing that vehicle transfers will not be processed without a valid insurance policy. He highlighted the importance of this legislation in supporting families impacted by road accidents and praised the collaborative efforts between the Sindh government and the Securities and Exchange Commission of Pakistan (SECP) in establishing this public welfare initiative.
Furthermore, the Chief Minister has called for a comprehensive awareness campaign to educate the public about the benefits and obligations under the new insurance mandate. This campaign aims to ensure that vehicle owners fully understand the importance of third-party insurance and comply with the law to avoid penalties and contribute to safer roads.
The SECP has formally recognized Sindh’s pioneering role in introducing these amendments to the Motor Vehicles (Amendment) Act 2026. It expressed optimism that other provinces will follow Sindh’s example by adopting similar regulations, which could lead to nationwide improvements in road safety and victim compensation mechanisms. This development marks a crucial milestone in Pakistan’s efforts to modernize its transport policies and protect vulnerable road users.
