KARACHI: The Securities and Exchange Commission of Pakistan (SECP) and the Punjab government have launched a digital system linking motor third-party insurance with vehicle route permits to strengthen enforcement and improve road safety.
The SECP, in collaboration with the Government of Punjab, the Central Depository Company (CDC) and the Insurance Association of Pakistan, announced the go-live of the integration on Wednesday.
Under the initiative, third-party motor insurance has been made mandatory for all public transport vehicles in Punjab, with route permits now tied to proof of insurance for both issuance and renewal.
The province has also digitised its vehicle route permit regime, integrating it with CDC’s Motor Insurance Repository to enable real-time verification of policies, aimed at improving transparency and compliance.
SECP Chairperson Kabir Ahmed Sidhu said the move reflects a shift towards digital enforcement and highlights insurance as a key tool for financial protection, stressing the importance of timely compensation for accident victims.
He noted that the repository currently holds data for around one million insured vehicles, compared with nearly 30 million vehicles on the roads, indicating low coverage.Pakistan reported 9,371 road accidents in 2023, resulting in 5,902 deaths and more than 11,000 injuries, he said. Punjab alone had about 24 million registered vehicles as of March 2024, suggesting a nationwide total of around 40-42 million.
The SECP is also pursuing reforms, including a no-fault regime and amendments to the Motor Vehicles Act, 1939, while aiming to raise insurance penetration from 0.8 per cent to 1.5 per cent.
