Sindh sets Rs700,000 compensation for families of accident victims

The Sindh government has implemented motor third-party insurance, setting compensation of Rs700,000 for individuals affected by road accidents.

Under the new system, accident victims will receive compensation through an automatic mechanism without the need to approach courts, enabling faster financial assistance.

According to officials, commercial vehicle insurance policies have witnessed a significant increase, rising by 1,300 percent. The number of vehicle insurance policies has increased from around 11,000 to more than 165,000.

Authorities are also working on expanding the motor insurance system to Punjab, Khyber Pakhtunkhwa and Balochistan.

Meanwhile, life insurance annuity products have been introduced to provide financial support and convenience for retired individuals.

In addition, an insurance companies’ consortium has been established to provide insurance coverage for crops, marking another step toward expanding Pakistan’s insurance sector.

Read more: Sindh makes third party insurance mandatory for all vehicles: CM

Earlier, the Sindh government made third-party liability insurance mandatory for all vehicles registered in the province.

Chief Minister of Sindh Murad Ali Shahsaid 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 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.