Chief Minister Murad Ali Shah has approved a groundbreaking policy making third-party motor insurance compulsory for all vehicles in Sindh, a move aimed at protecting road accident victims and enhancing road safety across the province.
Under the new regulations, vehicles cannot be registered in Sindh, nor can token tax be processed, without a valid third-party insurance policy. The policy follows amendments to the Sindh Motor Vehicles Ordinance, which now mandates insurance coverage for every registered vehicle.
Announcing the initiative, CM Shah also unveiled a “No-Fault Compensation System”, under which victims of road accidents—or their families—will receive financial support irrespective of who caused the accident. According to the framework, families of deceased victims will receive Rs700,000, while those suffering permanent disability will be entitled to Rs500,000 in compensation.
“Providing financial security to road accident victims is our priority. This law will ensure that affected families are not left alone in difficult times,” the chief minister said, emphasizing the policy’s focus on low-income families who are often most vulnerable.
To ensure transparency and effective enforcement, Sindh has introduced Pakistan’s first digital insurance monitoring system. CM Shah directed the Sindh Excise, Taxation and Narcotics Control Department to strictly implement the new policy.
Provincial Excise Minister Mukesh Kumar Chawla explained that vehicles without valid insurance would neither be registered nor allowed to pay token tax. Secretary Excise Saleem Rajput added that the department has linked its digital verification system to the Securities and Exchange Commission of Pakistan (SECP) database to prevent fraudulent insurance documents.
The new law also requires a valid insurance policy for vehicle ownership transfers, ensuring all registered vehicles carry proper third-party coverage. CM Shah called the initiative a major milestone for road safety and consumer protection, and announced a public awareness campaign to educate citizens on the law’s benefits.
“Along with tax collection, our real objective is to provide services to the public, which is why insurance has been linked with vehicle registration,” he said, acknowledging the efforts of Excise Minister Chawla and his team in completing the necessary legislative and administrative groundwork.
Energy Situation Review
Separately, CM Shah met with Federal Finance Minister Muhammad Aurangzeb and Federal Petroleum Minister Ali Pervaiz Malik to assess the regional situation and its potential impact on Pakistan’s energy supplies and economy. Officials briefed participants on rising global oil prices and the country’s fuel reserves, warning that escalating tensions in the Middle East could push crude oil prices to $120 per barrel.
The meeting discussed emergency energy conservation measures to manage fuel consumption while sustaining economic activity. CM Shah stressed the importance of responsible energy use and public cooperation. Three petrol cargoes were expected to reach Pakistan by Monday, though officials flagged potential hoarding at petrol pumps. Coordination between federal and provincial authorities was agreed upon to ensure uninterrupted fuel distribution nationwide.
