financial compensation of up to Rs. 700,000 for people affected by road accidents. The initiative is aimed at providing quicker financial relief to victims and their families while improving road safety across the province.
Under the new system, eligible accident victims will receive compensation through an automatic mechanism without the need to file lengthy court cases. Officials said the process has been designed to ensure faster financial assistance and reduce delays in compensating victims of road accidents.
According to government officials, the introduction of mandatory third-party insurance has led to a sharp rise in commercial vehicle insurance coverage. The number of insurance policies has increased from around 11,000 to more than 165,000, representing an increase of approximately 1,300 percent since the policy was introduced.
The Sindh government also announced that efforts are underway to expand the motor third-party insurance model to Punjab, Khyber Pakhtunkhwa, and Balochistan. Authorities believe the initiative can improve financial protection for accident victims across Pakistan if adopted by other provinces.
As part of broader reforms in the insurance sector, officials said new life insurance annuity products have also been introduced to provide greater financial security and convenience for retired individuals. In addition, an insurance companies’ consortium has been established to offer insurance coverage for crops, supporting the agriculture sector against financial losses caused by natural disasters and other risks.
Earlier, the Sindh government made third-party liability insurance mandatory for all vehicles registered in the province. Chief Minister Murad Ali Shah announced that no vehicle would be registered without a valid insurance policy, and owners would also be unable to pay token tax unless insurance requirements were fulfilled.
Under the amended law, the families of people who lose their lives in road accidents will receive Rs. 700,000 in compensation, while individuals who suffer permanent disabilities will be entitled to Rs. 500,000. The reforms were introduced through an amendment to the Provincial Motor Vehicles Ordinance, 1965, adding Section 67-H, which makes third-party liability insurance compulsory for motor vehicles.
The chief minister directed the Excise Department to ensure strict implementation of the law and stated that a valid insurance policy will also be required for the transfer of vehicle ownership. He said the initiative, introduced in collaboration with the Securities and Exchange Commission of Pakistan (SECP), is designed to strengthen public welfare by providing financial protection to families affected by road accidents. The government has also planned a public awareness campaign to educate citizens about the benefits of the new insurance system.
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