The number of policies has increased from 11,200 in March to 452,515 in November 2026 following legislation making third-party motor insurance mandatory for vehicles registered in the province.
The number of third-party motor insurance policies issued in Sindh has surged by approximately 3,940% in eight months, reflecting a significant increase in coverage following changes to provincial motor vehicle legislation.
According to a news release, the number of policies rose from 11,200 in March 2026 to 452,515 by November 2026. The increase followed amendments to provincial motor vehicle laws in March, which made third-party motor insurance compulsory for vehicles registered in Sindh.
The reform was introduced by the Sindh government with support from the Securities and Exchange Commission of Pakistan (SECP), which has worked to strengthen insurance coverage and improve compliance.
To facilitate implementation, the SECP established the Motor Insurance Repository, a digital platform designed to help authorities verify insurance policies. The system connects insurance records with Sindh’s vehicle registration and taxation systems, allowing officials to check policy details digitally.
The repository has supported the implementation of the mandatory insurance requirement and contributed to the increase in policy issuance.
Third-party motor insurance provides financial protection to people affected by road accidents. Subject to policy terms and applicable laws, it covers the policyholder’s liability for injury, death or property damage caused to other people. However, it does not cover damage to the policyholder’s own vehicle.
Sindh has nearly 2.6 million registered vehicles, indicating considerable room for further expansion of insurance coverage. The increase in policies highlights progress in bringing more vehicle owners within the formal insurance system.
Continued public awareness, effective enforcement and affordable insurance products will remain important to sustaining the growth and extending protection to more road users.
SECP Chairman Dr Kabir Ahmed Sidhu said third-party motor insurance helps road accident victims and their families access compensation.
“Building on Sindh’s progress, we are engaging with the federal government and the governments of Punjab and other provinces to support similar laws and enforcement measures. Our aim is to make this insurance mandatory across Pakistan,” he said.