Sindh makes third party insurance mandatory for all vehicles: CM

KARACHI: The Sindh government has made third-party liability insurance mandatory for all vehicles registered in the province.

Chief Minister of Sindh Murad Ali Shah has said that no vehicle will be registered in the province without insurance neither the token tax could be deposited.

Sindh’s CM said that the families of the deceased in traffic accident will now be paid Rs. 7,00,000 and Rs. 5,00,000 compensation for permanent disability in an accident.

With an amendment to the Provincial Motor Vehicles Ordinance, 1965, a new Section 67-H has been introduced requiring third-party liability insurance for motor vehicles.

The move will enhance financial protection for road accident victims and enhance road safety measures.

Sindh has become the first province of the country to introduce this insurance clause in the motor vehicles ordinance.

Chief Minister has directed the excise department to ensure strict enforcement of the law.

Murad Ali Shah said that a valid insurance policy will be mandatory for the transfer of a vehicle.

He said the third-party liability insurance law will be helpful for the families affected by road accident.

He said the Sindh government has in collaboration with the SECP has introduced a public welfare system.

Shah called for initiating an awareness campaign to inform general public about the benefits of the new law.

The Securities and Exchange Commission of Pakistan (SECP) has acknowledged the Sindh government for introducing amendments to the Motor Vehicles (Amendment) Act 2026, making third-party liability insurance mandatory for all vehicles registered in the province.

The SECP has expressed the hope that other provinces will also adopt similar steps.