Following significant amendments to the Sindh Motor Vehicle Act, vehicle owners across Sindh will now be unable to register, transfer, or pay token tax for their vehicles without obtaining mandatory third-party motor insurance.

The Securities and Exchange Commission of Pakistan (SECP) stated today that this new legislation is a significant step towards enhancing the financial protection of accident victims. The requirement to have third-party cover has now been formally incorporated into the Vehicle Registration Act.

Under the amended law, in the event of a fatality resulting from a road accident, the affected party will be entitled to receive an insurance claim of up to Rs 700,000.

For individuals who suffer permanent disability in a traffic accident, the revised act has set a compensation amount of Rs 500,000.

The Securities and Exchange Commission of Pakistan (SECP) has said that it is making continuous efforts to make third-party motor insurance an integral part of the vehicle registration process.

To facilitate this new requirement, the SECP has also developed an online database for the verification of third-party motor insurance policies.

The commission further stated that similar efforts are underway in Punjab, with the aim of linking vehicle route permits to the mandatory insurance system.