The Sindh government has introduced legal amendments to provide fixed “no-fault” compensation for road accident victims while enforcing mandatory third-party vehicle insurance across the province.
Acknowledged by the Securities and Exchange Commission of Pakistan (SECP), the changes were made through the Motor Vehicles (Amendment) Act 2026. Under the revised framework, all vehicles in Sindh must have valid third-party liability insurance, and compensation limits have been defined to ensure quicker financial relief for victims and their families.
The amendment adds Section 67-H to the Provincial Motor Vehicles Ordinance, 1965, stipulating that no vehicle can be registered, transferred, or pay annual token tax without a valid insurance policy covering third-party risks.
Key compensation limits have been set at Rs. 700,000 for death and Rs. 500,000 for permanent disability, making Sindh the first province to strengthen enforcement of mandatory third-party insurance.
To support compliance, the SECP has launched the Motor Insurance Repository (MIR), a digital database recording all registered motor insurance policies and enabling online verification. The commission is also working with other provinces, including Punjab, to link route permits with the MIR for nationwide enforcement.
