LAHORE: The Punjab Provincial Transport Authority (PTA) has digitally integrated Motor Third Party Insurance with the Vehicle Route Permit System, making valid insurance mandatory for public transport vehicles before issuance or renewal of route permits.
Punjab PTA Secretary Hassan Ahsan told the Business Recorder that the initiative was a major step towards improving road safety, regulatory enforcement and public service delivery across the province.
The system was developed in collaboration with the Securities and Exchange Commission of Pakistan (SECP), Central Depository Company (CDC) and Insurance Association of Pakistan. It has been fully operationalised, enabling automatic verification of insurance compliance during the route permit process.
Under the new system, all public transport vehicles must have valid third-party motor insurance before obtaining or renewing route permits. The integration is aimed at eliminating regulatory gaps and ensuring compliance without manual intervention.
A key feature is real-time verification of insurance policies through the CDC’s Motor Insurance Repository. The mechanism is expected to improve transparency, reduce the risk of fraudulent documents and strengthen enforcement while simplifying procedures for transporters.
The Punjab PTA has also established a Command and Control Centre to monitor the system and analyse data in real time, facilitating evidence-based decision-making and improving operational efficiency.
Officials said the initiative would provide greater financial protection to passengers, drivers and third parties by ensuring compensation in case of road accidents.
They noted that despite millions of registered vehicles in Pakistan, insurance coverage remained low. Mandatory digital verification through the route permit system is expected to help expand insurance coverage and could serve as a model for other provinces.
Further measures to strengthen enforcement and increase insurance penetration are also under consideration, officials said, adding that the initiative reflected Punjab PTA’s focus on technology-driven governance, transparency and public safety.
Copyright Business Recorder, 2026
Comments