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ISLAMABAD July 1,2026: The Securities and Exchange Commission of Pakistan (SECP) has reported a 1,374% increase in third-party motor insurance coverage in Sindh following regulatory reforms that made the insurance mandatory for all registered vehicles.
According to the SECP, active third-party motor insurance policies rose from 11,200 in March 2026 to 165,064 by the end of June 2026, significantly expanding financial protection for road users.
The Sindh government introduced the reform by amending the Provincial Motor Vehicles Act, 2026, with technical support from the SECP. Under the revised law, every registered vehicle must have valid third-party insurance. Vehicle owners without insurance cannot register or transfer their vehicles or pay annual token tax.
The insurance policy offers affordable financial protection to victims of road accidents. It covers property damage, bodily injury, and death caused to third parties. In addition, the law provides Rs700,000 in no-fault compensation for accidental death and Rs500,000 for permanent disability, enabling victims and their families to receive timely financial relief without lengthy legal proceedings.
The SECP said the reforms address a major road safety challenge. According to the National Transport Research Centre (NTRC) and the National Police Bureau (NPB), Pakistan records around 9,000 to 10,000 road traffic accidents every year, leaving thousands injured and placing a heavy financial burden on affected families.
With nearly 2.6 million registered vehicles in Sindh, the province still has significant potential to expand insurance coverage. The SECP said the sharp rise in policy issuance marks a major step toward improving road safety, strengthening consumer protection, and increasing insurance penetration.
Following Sindh’s progress, the SECP is now working with the governments of Punjab and other provinces to introduce similar reforms and expand mandatory third-party motor insurance across Pakistan.
