Karachi: Pakistan’s Securities and Exchange Commission of Pakistan (SECP) has formally endorsed the Sindh provincial government’s recent decision to make third-party motor insurance compulsory for all vehicles across the province. The initiative aims to enhance financial protection for individuals affected by road accidents while fostering a culture of accountability among vehicle owners.
In an official statement, the SECP highlighted that the policy represents a significant step towards safeguarding both the safety and financial well-being of road users. Under the new regulation, every vehicle owner in Sindh is required to obtain third-party motor insurance, ensuring timely compensation for victims in the event of an accident.
The Commission emphasised that third-party insurance is an internationally recognised mechanism, widely adopted to provide immediate financial relief to those affected by vehicular accidents. According to the SECP, implementing this policy aligns with global best practices and is expected to promote responsible driving habits and a stronger road safety culture.
Officials also stressed that compulsory insurance will not only protect accident victims but is anticipated to contribute to the stability of Pakistan’s insurance sector. The SECP confirmed that it will work closely with provincial authorities to ensure the effective implementation of the new rules and to raise public awareness about the importance of third-party motor insurance.
Key aspects of the initiative are summarised in the table below:
| Aspect | Details |
|---|---|
| Policy | Mandatory third-party motor insurance |
| Geographical Coverage | Sindh province |
| Objective | Financial protection for accident victims and improved road safety |
| Applicable Vehicles | All motor vehicles |
| Implementing Authorities | Securities and Exchange Commission of Pakistan and provincial authorities |
| Key Benefits | Guaranteed compensation, stability of the insurance sector, promotion of responsible driving culture |
Industry experts have welcomed the move, noting that it is a crucial measure to reduce the financial risks associated with road accidents. The provincial government expects that compulsory insurance will ensure adequate compensation for accident victims and encourage vehicle owners to adopt more responsible driving behaviour.
The policy is primarily aimed at mitigating the financial impact of road accidents and is being viewed as a potential model for other provinces across Pakistan. By setting this precedent, Sindh hopes to reinforce road safety standards nationwide and strengthen the regulatory framework for the country’s motor insurance sector.