The Sindh government has taken a groundbreaking step by launching Pakistan’s first-ever digital insurance monitoring system, coupled with the enforcement of mandatory third-party insurance for all vehicles registered within the province. This innovative initiative aims to significantly improve road safety standards while ensuring financial protection for victims of traffic accidents and their families.
a spokesperson for Chief Minister Murad Ali Shah, vehicles found without valid insurance coverage will face strict penalties, including denial of registration and withholding of token tax collection. This move is part of a broader strategy to integrate insurance compliance into the vehicle registration process, thereby promoting accountability and reducing the incidence of uninsured vehicles on Sindh’s roads.
In a notable amendment to the Sindh Motor Vehicle Ordinance 2025, a new legal provision has been introduced to guarantee financial compensation for victims of road accidents. Under this provision, the heirs of individuals who lose their lives in traffic incidents will be entitled to receive Rs700,000, while those who suffer disabilities due to such accidents will be compensated with Rs500,000. This measure is designed to provide much-needed financial relief and security to affected families, many of whom belong to economically vulnerable segments of society.
Chief Minister Murad Ali Shah has directed the Excise and Taxation Department to implement these regulations with rigorous enforcement. The new rules also stipulate that a valid insurance policy must be presented when transferring vehicle ownership, thereby closing loopholes that previously allowed uninsured vehicles to circulate freely. This comprehensive approach underscores the government’s commitment to safeguarding public welfare through legislative reforms.
Highlighting the significance of this initiative, CM Murad described the third-party insurance mandate as a vital step towards enhancing road safety and providing immediate financial assistance to accident victims. He emphasized that the policy particularly benefits low-income families who often bear the brunt of such tragedies without any support. Furthermore, the digital insurance monitoring system has been engineered to ensure transparency and security, effectively curbing the circulation of fraudulent insurance documents that have long plagued the sector.
In addition to regulatory measures, the Chief Minister has called for an extensive public awareness campaign to educate citizens about the new insurance requirements and their benefits. This campaign aims to foster a culture of compliance and inform vehicle owners about the protections available under the new law. CM Murad stressed that the government’s objective extends beyond mere tax collection; it is focused on delivering meaningful services that enhance the safety and financial security of the public.
