ISLAMABAD — The number of third party motor insurance policies in Sindh has increased by approximately 3,940 percent in eight months, reaching 452,515, according to the Securities and Exchange Commission of Pakistan (SECP). The increase follows the Sindh government’s decision in March to make third party motor insurance mandatory for registered vehicles.
The policy was introduced with support from the SECP. Digital System Tracks Insurance Policies The SECP said it established a digital repository to enable online verification of third party motor insurance policies. The system is integrated with the Sindh government’s vehicle registration and taxation systems.
Third party motor insurance covers injuries, deaths and property damage caused to other people in an accident. However, it does not cover damage to the policyholder’s own vehicle. Despite the increase in insurance coverage, the SECP said there was considerable room for further growth, as Sindh has approximately 2.6 million registered vehicles.