Third-party motor insurance coverage in Sindh has surged by 1,374 percent within three months of becoming mandatory for all registered vehicles, according to the Securities and Exchange Commission of Pakistan (SECP).

The regulator said the number of active third-party motor insurance policies increased from 11,200 to 165,064, reflecting the impact of the province’s enforcement drive.

The sharp rise follows coordinated efforts by the SECP and the Government of Sindh to implement compulsory third-party insurance for registered vehicles across the province.

Under the new policy, every registered vehicle in Sindh must have valid third-party motor insurance. Owners without coverage cannot register or transfer their vehicles or pay their annual token tax.

The insurance provides financial protection to road accident victims through a no-fault compensation system. It offers compensation of up to Rs. 700,000 in the event of death and up to Rs. 500,000 for permanent disability, irrespective of who was responsible for the accident.

The SECP noted that Pakistan records 9,000 to 10,000 reported road traffic accidents each year, underscoring the need for a compensation mechanism that provides timely financial support to victims and their families.

The regulator said the mandatory insurance program will eventually cover around 2.6 million registered vehicles in Sindh as implementation expands in phases.

The SECP also confirmed that work is underway to introduce mandatory third-party motor insurance in Punjab and other provinces, with the aim of extending financial protection for road users nationwide.