Sindh has introduced amendments to the Motor Vehicles Act, making third-party motor vehicle insurance mandatory for all types of vehicles across the province. According to a statement released by the Competition Commission of Pakistan (CCP) on Saturday, the requirement for third-party motor insurance is part of the provincial Motor Vehicle Registration Act, under which compensation is paid to a third party who suffers loss in a road accident caused by a vehicle. The Securities and Exchange Commission of Pakistan (SECP) remains in continuous contact with provincial governments to ensure the mandatory implementation of this law and to introduce amendments to provincial vehicle registration laws to increase the compensation amount under the insurance policy. “Effective enforcement of this law can help ensure support for accident victims while also improving the overall insurance sector in the country,” read the statement. Sindh has now become the first province in Pakistan to systematically enforce this public safety law. Following the amendments to the Vehicle Registration Act, no vehicle in Sindh will be registered, transferred to another owner, or allowed to pay annual token tax without third-party insurance. As per the statement, the third-party insurance is a low-cost, basic insurance policy that provides financial coverage in case a vehicle causes injury or financial loss to another person. The amendments also specify compensation amounts. Under the revised law, Rs700,000 will be paid in case of death resulting from an accident, while Rs500,000 will be given in case of permanent disability. The SECP has also developed a central electronic database where records of all insurance policies will be maintained. “This will allow online verification of insurance coverage during vehicle registration and transfer,” it said. The SECP is also working with the Punjab Transport Authority to introduce similar amendments to the Punjab Vehicle Registration Act, aimed at increasing compensation amounts and making the law mandatory.