In a major move to enhance road safety and ensure financial protection for citizens, the Sindh government has officially launched Pakistan’s first digital insurance monitoring system. Alongside this digital upgrade, third-party insurance has now been made strictly mandatory for all vehicles operating within the province.
The program, which is led by the Chief Minister Syed Murad Ali Shah, will offer urgent financial assistance to the low income families involved in a road accident and will completely eradicate the circulation of the forged insurance policies.
This is all that vehicle owners in Sindh need to know about the new rules and compensation policies.
Strict New Rules for Vehicle Owners
To ensure strict compliance with the newly introduced third-party insurance law, the provincial government has issued clear directives to the Excise and Taxation Department.
Under the new regulations, having a valid insurance policy is mandatory. If a vehicle is not insured, owners will face the following restrictions:
- No Registration: New vehicles will not be registered without proof of valid insurance.
- No Token Tax Collection: The authorities will refuse to collect the annual token tax for uninsured vehicles.
- No Ownership Transfer: A valid insurance policy is now a mandatory requirement for transferring vehicle ownership to another person’s name.
Financial Compensation for Accident Victims
The provincial government has made appropriate additions to the Sindh Motor Vehicle Ordinance that already exists to support this initiative. This amendment is a legal way of introducing financial compensation to traffic accident victims.
KARACHI: The Sindh govt has launched 🇵🇰’s first digital insurance monitoring system & mandated third-party insurance for all vehicles in the province.
— Raza Dharejo PPP (Official) (@RazaDharijo) March 8, 2026
This initiative aims to enhance road safety & ensure financial protection for traffic accident victims.https://t.co/JIu5tMp17n
Here is the breakdown of the financial relief that will be provided to victims or their heirs:
| Incident Result | Financial Compensation |
| Death in a traffic accident | Rs. 700,000 (Paid to heirs) |
| Injury resulting in disability | Rs. 500,000 |
Transparency and Public Awareness
CM Murad described this initiative as an important milestone for citizens’ protection. The new digital insurance tracking system has been tailored to be very transparent and secure in the sense that it would prevent any effort in utilizing fabricated or counterfeit insurance issuances.
Governments have also been advised to initiate a massive awareness campaign among the citizens to inform them on the benefits and particular demands of this new legislation. The government stressed that the end must not be the collection of taxes, but the delivery of quality services and financial stability to the citizens.
What is the new digital insurance monitoring system in Sindh?
It is Pakistan’s first digital system designed by the Sindh government to electronically verify vehicle insurance, making third-party insurance mandatory for all vehicles to eliminate fake policies.
What happens if my vehicle does not have third-party insurance in Sindh?
Without valid insurance, your vehicle will not be registered, its token tax will not be collected, and you will not be able to transfer the ownership of the vehicle.
How much compensation is provided to road accident victims in Sindh?
Under the amended Sindh Motor Vehicle Ordinance, the heirs of a person who dies in a traffic accident will receive Rs. 700,000, while Rs. 500,000 is provided in cases of disability.
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