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 registered in Sindh. The reform was introduced by the Sindh government with support from the SECP

To support implementation, the SECP established the Motor Insurance Repository, a digital system that enables authorities to verify insurance policies. The repository enables digital verification of insurance policies and links them with Sindh’s vehicle registration and taxation systems. This has helped increase policy issuance following the legal reform.

According to the statement, third-party motor insurance provides financial protection to people affected by road accidents. Subject to the terms of the policy and applicable law, it covers liability for injury, death or property damage caused to others. It does not cover damage to the policyholder’s own vehicle.

Sindh has nearly 2.6 million registered vehicles, leaving significant scope to expand insurance coverage further. The increase in policies reflects progress in strengthening compliance and improving financial protection for road users. Continued public awareness, effective enforcement and accessible insurance products will be important to sustain this progress.

“Third-party motor insurance helps road accident victims and their families access compensation,” SECP Chairman Dr Kabir Ahmed Sidhu said.

“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. We aim to make this insurance mandatory across Pakistan.”