KARACHI: Sindh Chief Minister Syed Murad Ali Shah has announced that third-party motor insurance will now be mandatory for all vehicles in the province, marking a significant step in enhancing road safety and providing protection for road accident victims.

According to Chief Minister Sindh, the decision comes after amendments to the Sindh Motor Vehicles Ordinance, introducing a new section that mandates insurance coverage for vehicle registration and token tax payments. The policy also includes a “No-Fault Compensation System,” offering financial aid to road accident victims or their families irrespective of fault, with compensation amounts set at Rs700,000 for death and Rs500,000 for permanent disability.

The initiative also features Pakistan’s first digital insurance monitoring system, aiming to ensure transparency and prevent fraudulent insurance practices. The Sindh Excise, Taxation, and Narcotics Control Department has been tasked with enforcing the law, and the digital verification of insurance policies will be linked with the Securities and Exchange Commission of Pakistan’s database.

Provincial Excise Minister Mukesh Kumar Chawla and Secretary Excise Saleem Rajput highlighted that vehicles without valid insurance would not be registered or allowed to pay token tax. The policy also requires valid insurance for vehicle ownership transfers, ensuring comprehensive third-party coverage for all registered vehicles.

Murad Ali Shah emphasized that the law would particularly benefit low-income families who lack financial protection in road accidents. He directed the Excise Department to conduct a public awareness campaign to educate citizens on the new law’s benefits and acknowledged the efforts of Excise Minister Mukesh Chawla and his team in implementing the framework.

The Sindh government’s initiative, in coordination with federal authorities and the Securities and Exchange Commission of Pakistan, aims to safeguard citizens and ensure timely financial relief for road accident victims.