The Sindh government today enforced mandatory third-party motor insurance for all vehicles across the province, introducing a strict ‘no insurance, no registration’ policy alongside a new ‘No-Fault Compensation System’ that guarantees financial assistance to road accident victims.
Under the new policy announced by Chief Minister Syed Murad Ali Shah, no vehicle in Sindh will be registered, nor will its token tax be accepted, without a valid third-party insurance policy. The measure has been enacted through amendments to the Sindh Motor Vehicles Ordinance, which now includes a new provision making insurance coverage compulsory.
As part of the initiative, a ‘No-Fault Compensation System’ has been approved, which will provide financial aid to victims or their families regardless of who caused the accident. According to the new framework, the heirs of a person who dies in a road incident will receive Rs 700,000, while individuals suffering a permanent disability will be entitled to Rs 500,000.
‘Providing financial security to victims of road accidents is our priority. This law will ensure that affected families are not left alone in difficult times,’ Mr Shah stated, highlighting the goal of offering a financial safety net to those affected by such tragedies.
To ensure effective enforcement and transparency, the province has launched Pakistan’s first digital insurance monitoring system. The Chief Minister has directed the Sindh Excise, Taxation and Narcotics Control Department to guarantee the strict implementation of the new regulations.
Secretary Excise Saleem Rajput confirmed that the department has established a digital verification mechanism by linking its systems with the database of the Securities and Exchange Commission of Pakistan (SECP). This integration is designed to prevent the use of fake or invalid insurance documents.
Provincial Excise Minister Mukesh Kumar Chawla reiterated that vehicles without the necessary insurance would be barred from both registration and token tax payment processes. The requirement also extends to the transfer of vehicle ownership, ensuring every registered vehicle maintains proper coverage.
The Chief Minister described the move as an important milestone for road safety and consumer protection, noting that the law would particularly benefit low-income families who often face the greatest financial hardship following road accidents. ‘The system has been designed to ensure transparency so that the possibility of fake insurance is eliminated,’ he added.
Mr Shah has also instructed the Excise Department to launch a public awareness campaign so that citizens can fully understand the benefits of the new legislative framework. He praised the efforts of Minister Chawla and his team in completing the complex work needed for implementation.
The Sindh government developed the modern system in coordination with federal authorities and the SECP. ‘Along with tax collection, our real objective is to provide services to the public, which is why insurance has been linked with vehicle registration,’ the Chief Minister said.