Province makes third-party motor insurance coverage necessary to boost monetary safety for street customers
ISLAMABAD:
The Securities and Change Fee of Pakistan (SECP) has backed Sindh in its determination to make third-party legal responsibility insurance coverage necessary for all autos registered within the province.
The federal government of Sindh has formally launched amendments to the Motor Automobiles (Modification) Act, 2026, making third-party legal responsibility insurance coverage necessary for all autos registered within the province to boost monetary safety for street accident victims.
In an announcement, the SECP stated that it had been constantly partaking with the provincial governments to strengthen the authorized framework and guarantee efficient enforcement of necessary third-party motor insurance coverage throughout the nation.
By means of this modification to the Provincial Motor Automobiles Ordinance, 1965, a brand new Part 67H has been launched, requiring third-party legal responsibility insurance coverage for motor autos. Underneath the revised framework, no automobile can be registered, transferred or allowed to pay annual token tax with out a legitimate insurance coverage coverage overlaying third-party dangers.
Third-party motor insurance coverage is a primary and reasonably priced coverage that covers authorized liabilities for injury to property, accidents or loss of life brought on to a different individual in an accident.
The modification additionally introduces outlined compensation limits on a no-fault foundation, guaranteeing well timed monetary reduction to victims or their authorized heirs. The compensation consists of Rs700,000 in case of loss of life and Rs500,000 for everlasting incapacity, considerably strengthening safety for street customers.
With this reform, Sindh has turn into the primary province in Pakistan to successfully implement necessary third-party legal responsibility motor insurance coverage by means of a strengthened authorized framework.
To help enforcement and enhance transparency, the SECP has operationalised the Motor Insurance coverage Repository (MIR), a centralised digital database that data motor insurance coverage insurance policies issued by the insurers registered with the fee. The system permits digital verification of insurance coverage insurance policies and helps guarantee compliance with minimal authorized necessities on the time of auto registration.
The SECP can also be working with the Punjab Provincial Transport Authority to hyperlink the automobile route allow regime with the Motor Insurance coverage Repository for on-line validation of insurance coverage insurance policies, additional strengthening enforcement mechanisms nationwide.
