Chief Minister Murad Ali Shah announced that vehicles will no longer be registered without a valid insurance policy. In addition, a token tax will not be accepted unless the vehicle owner provides proof of insurance.
Under the new policy, families of people who lose their lives in road accidents will receive compensation of Rs700,000. Victims who suffer permanent disability in an accident will be given Rs500,000.
The decision follows an amendment to the Provincial Motor Vehicles Ordinance 1965. A new Section 67 H has been introduced that requires all motor vehicles to have third-party liability insurance.
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Officials say the move will improve road safety and provide financial protection to accident victims. Sindh has become the first province in Pakistan to introduce such a requirement under its motor vehicles law.
The chief minister has directed the excise department to strictly implement the new rules. He also said that vehicle ownership transfers will not be allowed unless the vehicle has a valid insurance policy.
Murad Ali Shah added that the law will help families who suffer due to road accidents and provide them with much-needed financial support during difficult times.
The Sindh government introduced this system in collaboration with the Securities and Exchange Commission of Pakistan to strengthen public welfare measures.
Authorities have also been asked to start an awareness campaign so that citizens understand the benefits of the new law.
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The Securities and Exchange Commission of Pakistan appreciated the Sindh government for introducing amendments in the Motor Vehicles Amendment Act 2026. The commission also expressed hope that other provinces may adopt similar laws.
In simple words, this step can bring major change in road safety. Accident victims often struggle financially after tragedies. Mandatory insurance may help them receive timely support. If implemented properly, this law could become a model for the rest of the country.
