The Sindh government has decided to make third-party motor insurance compulsory across the province from the next financial year, aiming to improve protection for road accident victims and vehicle owners.
The decision was taken during a Sindh cabinet meeting chaired by Chief Minister Syed Murad Ali Shah.
The meeting was attended by provincial ministers, advisers, special assistants, Chief Secretary Asif Hyder Shah, and other senior officials.
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Under the new policy, both private and commercial vehicle owners will be required to have third-party insurance to ensure compensation for individuals affected by road accidents.
However, motorcycles will be exempt from this requirement, following cabinet approval of proposed amendments to relevant motor vehicle laws.
To move the plan forward, the cabinet approved changes to the Motor Vehicles Ordinance, 1965, and Sections 19 and 20 of the Motor Vehicles Act, 1939.
These amendments will be presented before the Sindh Assembly for final approval.
On the chief minister’s directions, the Excise Department has coordinated with the Insurance Association of Pakistan to make the claims process easier and more transparent.
READ: Sindh cuts 10pc sales tax on third-party motor insurance
Insurance facilitation desks will be set up, and uniform premium rates will be introduced to ensure fair compensation in accidents involving insured vehicles.
The cabinet also approved the launch of a 24-hour helpline and support services through insurance surveyors to assist accident victims and their legal heirs.
In a move to make insurance more affordable, the chief minister approved a reduction in stamp duty from Rs. 500 to Rs. 50, along with a cut in sales tax on third-party motor insurance from 15 percent to 5 percent.
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Once cleared by the Sindh Assembly, mandatory third-party motor insurance will come into effect from the next financial year, marking a major step toward improving road safety and financial protection in the province.
