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Sindh Mandates Third-Party Motor Insurance, Activates Digital Policy Checks and No-Fault Payouts

Excise offices will refuse registration, transfer or token-tax processing without a Motor Insurance Repository–verified policy.

Overview

  • The Sindh government amended provincial motor-vehicle law to require third-party liability coverage for all vehicles, with Chief Minister Murad Ali Shah ordering strict implementation.
  • A centralized digital monitoring system has been launched as the Motor Insurance Repository, enabling real-time verification through the Securities and Exchange Commission of Pakistan’s database to deter fake policies.
  • Vehicles lacking valid coverage will be denied registration, ownership transfer and annual token-tax collection, and authorities have been told to run a public-awareness campaign.
  • A no-fault compensation regime sets fixed payouts of Rs700,000 for death and Rs500,000 for permanent disability to speed financial relief for crash victims or their heirs.
  • Officials present Sindh as the first province to effectively enforce mandatory third-party cover, while the SECP works with Punjab to link route-permit workflows to the repository for online validation.