Sindh Enforces Mandatory Third-Party Motor Insurance for All Vehicles
Sindh Chief Minister Syed Murad Ali Shah has announced a landmark policy making third-party motor insurance compulsory for all vehicles in the province. This initiative is described as a major step toward protecting road accident victims and enhancing overall road safety across Sindh.
New Registration and Tax Requirements
Under the new regulations, no vehicle in Sindh will be registered, and no token tax will be accepted unless it has a valid third-party insurance policy. This decision follows amendments to the Sindh Motor Vehicles Ordinance, which now includes a new provision to enforce insurance coverage. Provincial Excise Minister Mukesh Kumar Chawla emphasized that vehicles lacking valid insurance will neither be registered nor permitted to pay token tax, ensuring strict compliance.
No-Fault Compensation System Introduced
In a significant move, the Sindh government has also approved a No-Fault Compensation System. Under this framework, victims of road accidents or their families will receive financial assistance regardless of who caused the accident. Specifically, the heirs of a person who dies in a road accident will receive Rs700,000, while individuals suffering permanent disability will be entitled to Rs500,000 in compensation. Chief Minister Murad Ali Shah stated that this system aims to provide financial protection to affected families, particularly benefiting low-income households who often lack such security.
Digital Monitoring and Transparency Measures
To ensure effective enforcement, Sindh has launched Pakistan's first digital insurance monitoring system. This system links with the database of the Securities and Exchange Commission of Pakistan to verify insurance policies digitally, preventing the use of fake or invalid documents. Secretary Excise Saleem Rajput highlighted that this digital verification will enhance transparency and eliminate fraud. Additionally, the new policy requires a valid insurance policy for the transfer of vehicle ownership, ensuring every registered vehicle on the road carries proper third-party coverage.
Public Awareness and Implementation
Chief Minister Murad Ali Shah directed the Sindh Excise, Taxation and Narcotics Control Department to strictly implement the new law and launch a public awareness campaign. He emphasized that the initiative is designed to protect citizens and provide timely financial relief to road accident victims. "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," he said. The Sindh government, in coordination with federal authorities, has introduced this modern system to align tax collection with public service goals.
