Sindh Mandates Third-Party Motor Insurance For Vehicle Registration

On February 25, 2026, the Sindh government enacted the Provincial Motor Vehicles (Amendment) Bill, 2026, mandating third-party motor insurance for vehicle registration and ownership transfer. Governor Muhammad Kamran Khan Tessori's approval of the bill means that vehicles cannot be registered or transferred without valid insurance, which aims to ensure fair compensation for victims of road accidents. The law stipulates minimum compensation amounts of Rs700,000 for fatalities and up to Rs500,000 for permanent disabilities resulting from accidents. Additionally, insurance companies are required to settle claims within 45 days post-accident, enhancing accountability in the sector (ARY News). This legislation is part of broader efforts to improve road safety and insurance coverage in Sindh, following the implementation of the Provincial Motor Vehicles (Amendment) Act, 2024, which introduced CNIC-linked vehicle number plates to streamline vehicle ownership transfer processes.