Sindh Motor Insurance Policies Surge 40 Times in 8 MonthsPakistan

Third-party motor insurance is a basic and affordable policy that provides financial protection to victims of road accidents, covering damage to property, bodily injury or death caused to another person. Under the scheme, no-fault compensation of Rs700,000 is payable in case of death and Rs500,000 in case of permanent disability.

Digital system to verify policies

To support implementation, the SECP has established the Motor Insurance Repository, a digital system that enables the authorities to verify insurance policies. The law also links insurance to everyday vehicle matters: under the revised rules, third-party cover is required for registration, transfer of ownership or payment of the annual token tax.

Sindh was the first province in the country to make third-party motor insurance compulsory. Chief Minister Murad Ali Shah has said no vehicle will be registered in the province without insurance, and token tax cannot be deposited without it.

The growth has been rapid but steady. By the end of June, active policies had already reached 165,064, a rise of 1,374 per cent from March, according to an earlier SECP statement. The latest figure of 452,515 shows the pace has continued through the second half of the year.

Millions of vehicles still uninsured

Despite the surge, coverage remains far from complete. Sindh has nearly 2.6 million registered vehicles, leaving significant scope to expand insurance coverage further, the SECP said.

Officials have said work is under way to expand the motor insurance system to Punjab, Khyber Pakhtunkhwa and Balochistan. For now, the Sindh experience is being presented as a model for how mandatory cover, backed by digital verification, can bring large numbers of vehicles into the insurance net. If the model is extended, millions more vehicle owners across the country could be brought under the same protection.