Sindh Launches Pakistan’s First Digital Insurance Monitoring System, Makes Third-Party Vehicle Insurance Mandatory

The Sindh government has launched Pakistan’s first digital insurance monitoring system and made third-party insurance compulsory for all vehicles in the province. The initiative is designed to enhance road safety and provide financial protection for traffic accident victims.

A spokesperson for CM Murad stated that vehicles without insurance will neither be registered nor will their token tax be collected.

Under a new section added to the Sindh Motor Vehicle Ordinance 2025, financial compensation will now be provided to accident victims and their families. Heirs of a person who dies in a traffic accident will receive Rs700,000, while Rs500,000 will be provided in cases of disability. Officials say this move aims to offer financial security to victims and their families.

CM Murad has directed the Excise and Taxation Department to strictly enforce the law. Under the new rules, a valid insurance policy will also be mandatory for the transfer of vehicle ownership.

Describing the initiative as a key step for road safety, CM Murad said, “The third-party insurance law would provide much-needed support to low-income families affected by accidents and ensure that victims receive immediate financial relief.”

He added that the digital system has been designed to be transparent and secure, effectively eliminating the risk of fake insurance policies. CM Murad also instructed authorities to launch a public awareness campaign to inform citizens about the benefits and requirements of the new law, emphasizing that the government’s goal is not only to collect taxes but also to provide meaningful services and protection to the public.