Sindh Third-Party Motor Insurance Policies Jump 3,940%

Sindh’s move to make third-party motor insurance mandatory is already changing the market. In just eight months, the province’s third-party motor insurance policies rose to 452,515, a jump of about 3,940 percent.

That matters for anyone who owns, registers, transfers, or drives a vehicle in Sindh. Insurance is no longer just a side issue for some car owners. It is now tied to the way vehicles are kept legal on the road.

The Securities and Exchange Commission of Pakistan said the rise came after the Sindh government’s March decision to require third-party motor insurance for registered vehicles. The regulator supported the rollout and said the system is now connected to the province’s vehicle registration and taxation setup.

What the policy covers

Third-party motor insurance is not the same as full vehicle insurance.

It covers injuries, deaths, and property damage caused to other people in an accident. If a driver hurts someone else or damages another vehicle or property, the policy is meant to help pay for that loss.

It does not pay for damage to the policyholder’s own vehicle. That means a car owner who wants protection for their own repairs may still need broader comprehensive insurance.

For many drivers, that difference will be important at the time of an accident. A third-party policy can help meet a legal requirement, but it may still leave the owner with repair bills for their own car.

Why the new system matters

The SECP has also set up a digital repository for online verification of third-party motor insurance policies. The system is linked with Sindh’s vehicle registration and tax records, which should make it easier for officials and vehicle owners to check whether a policy is properly recorded.

For ordinary car owners, that could reduce confusion during registration, transfer, or tax-related checks. It also gives authorities a way to spot missing or unrecorded policies more easily.

Still, vehicle owners should not rely on assumptions. They should keep their policy number, registration details, and payment receipt safe, and confirm that their insurer is legitimate. If there is any doubt, official Sindh government or SECP channels should be used for verification.

Plenty of room left in Sindh

Even with the sharp rise, the SECP says Sindh still has about 2.6 million registered vehicles. That means the current 452,515 policies cover only a part of the total vehicle base.

The gap shows how much more the market can grow, but it also shows that the new rule is still in its early phase. More policies will likely depend on how smoothly enforcement works, whether premiums remain affordable, and how easy it is for people to verify coverage.

SECP Chairman Dr. Kabir Ahmed Sidhu has also said the regulator is working with other provincial governments to bring mandatory third-party motor insurance to their areas as well. If that happens, the same basic system could be used more widely across Pakistan.

For now, the key point for Sindh drivers is simple: third-party insurance is no longer optional in the province. Vehicle owners should check their coverage, keep proof with them, and know exactly what the policy does and does not protect.

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