SECP expresses support for Sindh's mandatory third-party motor insurance policy

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has voiced its support for the Sindh government's decision to make third-party motor insurance compulsory for all vehicles in the province. The move aims to strengthen financial protection for road users and address the risks associated with road accidents.

According to an official statement, the SECP welcomed the Sindh government's initiative, describing it as a significant step towards enhancing the safety and financial security of motorists and pedestrians alike. The policy requires all vehicle owners in Sindh to obtain third-party insurance coverage, which is designed to provide compensation to victims of road accidents caused by insured vehicles.

The SECP highlighted that third-party insurance is a widely recognized mechanism for ensuring that victims of traffic accidents receive timely financial assistance. The commission further noted that the implementation of this policy aligns with international best practices and will help foster a culture of responsible driving and accountability on the roads.

Officials emphasized that the mandatory insurance policy will not only protect accident victims but also contribute to the overall stability of the insurance sector in Pakistan. The SECP stated that it will continue to work closely with provincial authorities to facilitate the effective enforcement of the new regulation and to promote public awareness regarding the importance of third-party motor insurance.

The Sindh government's decision comes amid growing concerns over the financial impact of road accidents on individuals and families. By making third-party insurance compulsory, authorities aim to ensure that those affected by traffic incidents have access to adequate compensation and support.