Sindh launches Pakistan’s first digital insurance monitoring system for vehicles

KARACHI: The Sindh government has launched Pakistan’s first digital insurance monitoring system and made third-party insurance mandatory for all vehicles across the province.

According to officials, vehicles without valid insurance will neither be registered nor issued token tax under the new system introduced by the provincial government.

A spokesperson for Sindh Chief Minister Murad Ali Shah said the initiative aims to enhance road safety and provide financial protection to victims of traffic accidents.

Under the amended provisions in the Sindh Motor Vehicle Ordinance 2025, financial compensation will be provided to victims of road accidents and their families.

As per the new law, heirs of a person who dies in a traffic accident will receive Rs700,000, while compensation of Rs500,000 will be given in cases where a person suffers permanent disability.

Officials said the move is intended to ensure financial security for accident victims, particularly benefiting low-income families affected by road incidents.

The chief minister 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.

Murad Ali Shah described the initiative as a major step towards improving road safety and protecting citizens, adding that the third-party insurance law will help ensure that accident victims receive timely financial assistance.

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He further said the newly introduced digital insurance system has been designed to be transparent and secure, eliminating the possibility of fake insurance policies.

The chief minister also directed authorities to launch a public awareness campaign to inform citizens about the benefits and requirements of the new law. He emphasised that the government’s objective is not only to collect taxes but also to provide effective services and protection to the public.