KARACHI: Third-party insurance has been made mandatory for all registered vehicles in Sindh. With the efforts of the Securities and Exchange Commission of Pakistan (SECP) and the Sindh government.
After the implementation of motor insurance, third-party motor insurance in the province increased by 1374 percent; the number of insurance policies increased from 11,000 to 165,000 in three months.
Without insurance, vehicle registration, transfer, and token tax will not be possible, while compensation of up to Rs 700,000 will be paid in case of death in an accident and up to Rs 500,000 in case of permanent disability.
Under no-fault compensation, timely financial assistance will be provided to the victims. Every year, 9 to 10 thousand reported traffic accidents occur in Pakistan. Third-party motor insurance will provide financial support to the victims of accidents.
2.6 million registered vehicles will be provided with insurance cover in Sindh in a phased manner, while work is underway to implement compulsory motor insurance in Punjab and other provinces as well.
