Sindh’s motor insurance boom masks a massive coverage gap

KARACHI (Staff Report): Sindh has witnessed a nearly 40-fold increase in third-party motor insurance policies over the past eight months, but the rapid growth still leaves a significant gap in coverage across the province.

According to the Securities and Exchange Commission of Pakistan (SECP), the number of third-party motor insurance policies in Sindh has reached 452,515, registering an increase of approximately 3,940 percent since the provincial government made insurance mandatory for registered vehicles in March.

Despite this sharp rise, the figures highlight the scale of the challenge ahead. With approximately 2.6 million vehicles registered in Sindh, the current number of policies represents only a fraction of the province’s registered vehicle base.

The development raises questions about enforcement, compliance and the extent to which vehicle owners are obtaining and maintaining valid insurance coverage.

The Sindh government introduced mandatory third-party motor insurance with SECP’s assistance. A digital repository was also established to enable online verification of insurance policies and integrated with the provincial vehicle registration and tax systems.

Third-party motor insurance covers compensation for injury, death or property damage caused to other people in an accident. However, it does not cover damage to the policyholder’s own vehicle.

SECP Chairman Dr Kabir Ahmed Sidhu said the regulator was working to extend mandatory third-party motor insurance to other provinces, with the objective of introducing the system nationwide.

While the increase in policies signals progress in formalising motor insurance, the key test remains whether the authorities can translate the initial surge into broader and sustained coverage across Sindh.