KARACHI: The Sindh government has officially implemented the Motor Vehicles (Amendment) Act 2026, making third-party liability insurance compulsory for every vehicle registered in the province. This landmark move establishes Sindh as the first province in Pakistan to effectively enforce a legal framework that guarantees financial protection for road accident victims.
Under the new regulations, the Excise, Taxation and Narcotics Control Department will no longer process vehicle registrations, ownership transfers, or annual token tax payments without a valid insurance policy. Chief Minister Syed Murad Ali Shah approved the “No-Fault Compensation System,” ensuring that victims or their legal heirs receive financial assistance regardless of who caused the accident.
The revised law sets clear compensation limits: Rs700,000 for cases of accidental death and Rs500,000 for victims suffering permanent disability. To curb the use of fraudulent documents, the Sindh government has integrated its system with the Securities and Exchange Commission of Pakistan (SECP). This digital linkage allows authorities to verify insurance policies in real-time through the Motor Insurance Repository (MIR).
Provincial authorities have also linked this insurance mandate with the Intelligent Traffic System (ITS) and e-challan platforms. Traffic cameras will now assist in identifying uninsured vehicles, streamlining enforcement across major urban centers. Officials believe this initiative will safeguard low-income families from the sudden financial shocks caused by road tragedies while fostering a culture of accountability among motorists.
The SECP has lauded the Sindh government for this consumer protection measure and is currently working with the Punjab Provincial Transport Authority to implement a similar mandatory regime in Punjab.