The Government of Sindh has made third-party liability motor insurance mandatory for all vehicles, becoming the first province in Pakistan to introduce such a requirement.
The measure has been implemented through an amendment to the Provincial Motor Vehicles Ordinance, 1965, under which a new Section 67-H has been added.
Under the revised law, vehicles must have a valid third-party insurance policy in order to be registered, transferred, or to pay the annual token tax. Without proof of insurance covering third-party risks, these vehicle-related processes will not be permitted.
Third-party motor insurance is a basic and affordable policy that protects vehicle owners against legal liabilities arising from accidents involving other people or their property. It covers compensation for property damage, bodily injury, or death caused to a third party.
The policy provides compensation of up to PKR 700,000 in case of death and PKR 500,000 in case of permanent disability resulting from an accident.
To support the implementation of this requirement, the Securities and Exchange Commission of Pakistan (SECP) has introduced the Motor Insurance Repository (MIR)—a digital platform that enables authorities to verify insurance policies in real time, ensuring transparency and compliance with the new regulation.
