The Sindh government has made third-party vehicle insurance mandatory for all vehicles in the province, officials announced.
A spokesperson for Murad Ali Shah stated that without valid insurance, vehicles will not be registered, nor will token tax payments be accepted.
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Under the new rules, the families of accident victims will receive Rs 700,000 in case of death and Rs 500,000 for permanent disability.
Digital monitoring system introduced
The spokesperson added that a new fault-based compensation system has been approved for vehicles, making Sindh the first province in Pakistan to launch a digital insurance monitoring system.
Sindh cuts 10pc sales tax on third-party motor insurance
This system will track insurance policies digitally, ensuring transparency and preventing fake insurance claims.
Legal changes and enforcement
The Sindh Motor Vehicle Ordinance has been amended to include the new provisions.
Murad Ali Shah instructed the Excise Department to strictly enforce the law, making insurance mandatory for vehicle transfer as well.
He said the move is a significant step for road safety and consumer protection, providing immediate financial relief to affected families.
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An awareness campaign will be launched to inform the public about the new regulations and their benefits, while also improving tax collection and public services.
Third-party insurance is designed to protect accident victims and their families financially. Previously, many vehicles in Sindh were uninsured, leaving victims vulnerable.
The new law ensures mandatory coverage and a transparent digital system to monitor compliance.
