Sindh Government Introduces New Traffic Laws to Provide Financial Compensation to Accident Victims

Karachi: The Sindh government has taken a significant step to protect victims of road accidents by amending the Sindh Motor Vehicle Act, making third-party motor insurance mandatory for all vehicles in the province.

Under the new amendments, third-party motor insurance has been integrated into the vehicle registration process. No vehicle will be registered without valid third-party insurance. Authorities have also made it compulsory for vehicle ownership transfers and token tax payments.

According to the revised regulations, in the event of a road accident resulting in death, the affected party will be entitled to compensation of up to **PKR 700,000** under the insurance policy. In cases of permanent disability, the injured person will receive compensation of up to **PKR 500,000**.

Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) stated that efforts are underway to formally integrate third-party motor insurance into the legal framework. An online database has been created to verify third-party insurance policies.

The SECP also indicated that steps are being taken in Punjab to link vehicle route permits to the insurance system, ensuring that victims of traffic accidents receive timely financial protection.