Karachi, July 3, 2025 — Big changes are underway for vehicle owners in Sindh as the provincial government has officially updated the Motor Vehicles Act, 1939 through the recently approved Finance Act, 2025.
These new reforms, effective from July 1, aim to modernize outdated provisions and bring clarity to insurance rules — especially for motorcycles.
One of the most notable updates is the exemption of motorcycles — including all two-wheeled vehicles, with or without gear — from the mandatory requirement of third-party insurance. This means motorcyclists in Sindh will no longer be legally required to purchase insurance for their bikes under the current law.
However, the Sindh government has strongly encouraged motorcycle owners to still consider voluntary insurance, especially third-party coverage. This move is meant to promote personal responsibility and financial protection in case of accidents, even though the insurance itself is no longer a legal necessity.
This change stems from amendments made to Section 95 of the Motor Vehicles Act, 1939. The amendment states that motorcycles are now excluded from the general insurance mandate — but this exclusion does not apply to motorcycles that fall under special exceptions already outlined in other sections of the Act.
Meanwhile, Section 94 of the Motor Vehicles Act remains in force for all other vehicles. This section mandates that every motor vehicle must have third-party insurance before being driven on the road. The rule ensures that if someone gets injured or property is damaged due to an accident, the insurance will cover the costs.
Other sections in Chapter VIII of the Act — including Sections 96 through 99 — lay out the specific rules for how insurance policies must work, including who pays in the event of an accident, what happens if the insured person becomes insolvent, and how much liability insurers must accept.
In short, while the Sindh government has relaxed insurance rules for motorcycles, the broader Motor Vehicles Act, 1939 still plays a key role in protecting victims of road accidents by ensuring insurance remains a legal and financial safeguard for most vehicles on the road.