Sindh Car Insurance Coverage Soars 4,000%

The number of third party motor insurance policies in Sindh has surged by around 3,940 percent in just eight months, reaching a total of 452,515 policies according to the Securities and Exchange Commission of Pakistan (SECP). This significant rise has been driven by a decision made by the Sindh government in March to make third party motor insurance compulsory for all registered vehicles in the region, with the backing of the SECP.

To facilitate the administration of these policies, the SECP has established a digital repository that enables online verification of third party motor insurance policies. This system is seamlessly integrated with the Sindh government's vehicle registration and taxation systems, streamlining the process for both insurers and vehicle owners.

While this increase in coverage is commendable, the SECP cautions that there remains substantial potential for further expansion, as Sindh is home to approximately 2.6 million registered vehicles. Dr. Kabir Ahmed Sidhu, the SECP Chairman, highlighted the regulator's ongoing collaboration with other provincial governments to introduce mandatory third party motor insurance policies across Pakistan, aiming to broaden the system's reach nationwide.