Sindh Introduces Pakistan’s First Digital Vehicle Insurance Monitoring System

By Tanveer Ahmed :

The government of Sindh has launched Pakistan’s first digital system to monitor vehicle insurance and made third-party insurance mandatory for all vehicles across the province.

Officials say the new initiative is aimed at improving road safety and providing financial protection to victims of traffic accidents.

According to a spokesperson for Chief Minister Murad Ali Shah, vehicles without valid insurance will no longer be registered, and authorities will also refuse to collect token tax from uninsured vehicles.

The provincial government has introduced the new policy through an amendment to the Sindh Motor Vehicle Ordinance 2025, which now includes provisions for financial compensation to accident victims and their families.

Under the revised law, the family of a person killed in a road accident will receive Rs700,000 in compensation. In cases where a victim suffers a disability, financial assistance of Rs500,000 will be provided.

Officials say the measure is designed to give victims and their families a degree of financial security following road accidents.

Mr Shah has directed the Sindh Excise and Taxation Department to strictly enforce the new rules. A valid insurance policy will also become mandatory when transferring vehicle ownership.

The chief minister described the initiative as a significant step towards improving road safety and protecting citizens, particularly low-income families who often struggle with the financial consequences of traffic accidents.

He said the digital monitoring system has been designed to ensure transparency and security, helping authorities eliminate fake insurance policies.

Mr Shah has also instructed officials to launch a public awareness campaign to inform motorists about the new law and its benefits.

He said the government’s aim was not only to collect revenue but also to provide meaningful services and protection to the public.