Sindh Third Party Motor Insurance Soars 40 Times
Sindh third party motor insurance policies have risen nearly 40 times in eight months, reaching 452,515 in November, the Securities and Exchange Commission of Pakistan (SECP) said on Friday.
Only 11,200 policies were active in March. The increase of about 3,940 per cent followed the Sindh government’s decision in March to make third-party motor insurance mandatory for every registered vehicle in the province.
The reform came through amendments to the provincial motor vehicle law, introduced with the SECP’s support. Under the revised law, no vehicle can be registered, transferred or pay its annual token tax without a valid third-party insurance policy.
Sindh third party motor insurance: the digital system behind the surge
To support the rollout, the SECP set up the Motor Insurance Repository, a digital system that records every third-party motor insurance policy issued by registered insurers. The system is linked to the Sindh government’s vehicle registration and taxation systems, so officials can verify a policy online at the time of registration or tax payment.
Third-party motor insurance covers injuries, deaths and property damage caused to other people in an accident. It does not cover damage to the policyholder’s own vehicle.
The cover matters because it gives road accident victims and their families a route to compensation. Under the scheme, families of people killed in road accidents receive Rs700,000, while Rs500,000 is paid for permanent disability.
Room to grow
Despite the sharp rise, the SECP said there is still considerable room for growth. Sindh has about 2.6 million registered vehicles, so most vehicles on the province’s roads are still uninsured.
SECP Chairman Dr Kabir Ahmed Sidhu said the regulator is working with other provincial governments to introduce mandatory third-party motor insurance in their jurisdictions and expand the system across Pakistan.
The growth has been steady since the law took effect. By the end of June, active policies had already risen to 165,064, an increase of 1,374 per cent in three months. The November figure of 452,515 shows the pace has continued through the second half of the year.
Sindh is the first province in Pakistan to enforce mandatory third-party motor insurance in this way. The province made the change through a new Section 67-H in the Provincial Motor Vehicles Ordinance, 1965, and tied compliance to registration, ownership transfer and token tax.
Insurance in the news
The insurance sector has drawn attention in the courts as well as in the regulator’s data. The Lahore High Court ruled this week that consumer courts cannot hear complaints from insurance policyholders, holding that such complaints fall outside their jurisdiction. Business Recorder reported the same SECP figures on Friday.
For motorists in Sindh, the practical effect of the reform is simple: insurance is no longer optional. A vehicle without a valid policy cannot be registered, sold on, or taxed, and the digital repository means officials can check compliance in seconds. Drivers comparing cover can check the best car insurance companies in Pakistan and their rates, while embedded insurance products such as JazzSure show how cover is reaching new users through other channels.
Whether other provinces follow Sindh’s lead will now depend on the talks the SECP says it is holding with provincial governments. If they do, the 40-fold rise in Sindh could become the template for motor insurance across the country.
Frequently asked questions
How many third-party motor insurance policies are there in Sindh?
452,515 as of November 2026, up from 11,200 in March, a rise of about 3,940 per cent in eight months.
Why did the number rise so sharply?
Sindh made third-party motor insurance mandatory for all registered vehicles in March 2026, through amendments to the provincial motor vehicle law.
What does third-party motor insurance cover?
It covers injuries, deaths and property damage caused to other people in an accident. It does not cover damage to the policyholder’s own vehicle.
What compensation do accident victims receive?
Families of people killed in road accidents receive Rs700,000, and Rs500,000 is paid for permanent disability.
How is compliance checked?
The SECP’s Motor Insurance Repository records every policy and is linked to Sindh’s vehicle registration and taxation systems, allowing online verification.
Will other provinces follow?
The SECP says it is working with other provincial governments to introduce mandatory third-party motor insurance in their jurisdictions.
