Sindh registers 40x rise in third-party motor insurance policies
The number of third-party motor insurance policies issued in Sindh has increased from 11,200 in March 2026 to 452,515 by November, representing growth of approximately 3,940% in eight months, the Securities and Exchange Commission of Pakistan (SECP) said on Friday. The increase follows amendments to provincial motor vehicle legislation in March, making third-party insurance mandatory for vehicles…
In the last eight months, the number of third-party motor insurance policies issued in Sindh has soared by an astonishing 3,940%, according to the Securities and Exchange Commission of Pakistan (SECP). The SECP reported that the count of such policies rose from 11,200 in March 2026 to 452,515 by November, signifying a dramatic increase of 40 times.
The surge in third-party motor insurance policies in Sindh is the direct result of amendments to provincial motor vehicle legislation, effective from March. These amendments made third-party insurance mandatory for all vehicles registered in Sindh, a move backed by both the Sindh government and the SECP.
To aid the implementation of this new rule, the SECP introduced the Motor Insurance Repository, a digital system designed to streamline the verification process of insurance policies. This innovative system links insurance policies with Sindh’s vehicle registration and taxation systems, making it easier to confirm the validity of policies.
The SECP's move has not only ensured compliance but also provided financial protection to individuals affected by road accidents. Third-party motor insurance covers liability for injury, death, or property damage caused to others in an accident, but it does not cover damage to the policyholder’s own vehicle. This type of insurance provides crucial support for road accident victims and their families, enabling them to seek compensation.
Sindh, with nearly 2.6 million registered vehicles, has significant potential to further expand its insurance coverage. The SECP Chairman, Dr Kabir Ahmed Sidhu, emphasized the importance of continued public awareness, effective enforcement, and accessible insurance products to sustain this progress.
Moreover, the SECP aims to replicate this success across the rest of Pakistan by working in collaboration with the Federal Government and the governments of Punjab and other provinces to introduce similar laws and enforcement measures. The overarching goal is to make third-party motor insurance mandatory nationwide, further enhancing financial protection for road users.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
