ISLAMABAD: November 13, 2026 — Sindh has recorded a nearly 40-fold increase in third-party motor insurance policies following the introduction of mandatory insurance requirements for vehicles registered in the province, according to the Securities and Exchange Commission of Pakistan (SECP).

The number of third-party motor insurance policies issued in Sindh rose from 11,200 in March 2026 to 452,515 by November, representing an increase of approximately 3,940% within eight months.

The surge follows amendments to provincial motor vehicle legislation introduced in March, making third-party motor insurance mandatory for vehicles registered in Sindh. The reform was implemented by the provincial government with support from the SECP.


Digital Repository Supports Insurance Expansion

To facilitate the implementation of the mandatory insurance framework, the SECP established the Motor Insurance Repository, a digital platform designed to enable authorities to verify insurance policies.

The repository links insurance policies with Sindh’s vehicle registration and taxation systems, helping improve verification and compliance following the legislative changes.

The digital system has played a role in facilitating the increase in insurance policy issuance, according to the commission.


Nearly 2.6 Million Vehicles Registered in Sindh

Sindh has approximately 2.6 million registered vehicles, indicating substantial potential for further expansion of motor insurance coverage.

Third-party motor insurance provides financial protection to individuals affected by road accidents. Subject to policy terms and applicable law, it covers liability for injuries, deaths, or property damage caused to other parties.

However, the insurance does not cover damage to the policyholder’s own vehicle.

The SECP stated that continued public awareness, effective enforcement, and accessible insurance products will be necessary to sustain the growth in coverage.


SECP Seeks Mandatory Insurance Across Pakistan

SECP Chairman Dr. Kabir Ahmed Sidhu said third-party motor insurance helps road accident victims and their families access compensation.

He stated that the commission is engaging with the Federal Government and the governments of Punjab and other provinces to support similar legislation and enforcement measures.

The SECP aims to make third-party motor insurance mandatory across Pakistan, building on the progress achieved in Sindh.

The sharp rise in policy issuance reflects efforts to strengthen legal compliance and improve financial protection for road users in the province.

Source: Securities and Exchange Commission of Pakistan (SECP), Press Release dated November 13, 2026.