ISLAMABAD: The number of third-party motor insurance policies issued in Sindh has surged from 11,200 in March 2026 to 452,515 by November, marking an increase of approximately 3,940% in eight months, according to the Securities and Exchange Commission of Pakistan (SECP).
The sharp rise follows amendments to provincial motor vehicle legislation in March, making third-party insurance mandatory for vehicles registered in Sindh. The reform was introduced by the Sindh government with support from the SECP.
To facilitate implementation, the SECP established the Motor Insurance Repository, a digital platform that allows authorities to verify insurance policies and links them with the province’s vehicle registration and taxation systems.
The system has helped improve compliance and increase policy issuance following the legislative changes.
Third-party motor insurance provides financial protection to people affected by road accidents. Subject to policy terms and applicable laws, it covers liability for injuries, deaths or property damage caused to others. However, it does not cover damage to the insured vehicle itself.
Sindh has nearly 2.6 million registered vehicles, indicating considerable potential for further expansion of insurance coverage.
The SECP said continued public awareness, effective enforcement and accessible insurance products would be essential to sustaining the progress.
SECP Chairman Dr. Kabir Ahmed Sidhu said third-party motor insurance helps road accident victims and their families receive compensation.
“Building on Sindh’s progress, we are engaging with the Federal Government and the governments of Punjab and other provinces to support similar laws and enforcement measures. Our aim is to make this insurance mandatory across Pakistan,” Sidhu said.
