CM approves ‘no-fault’ compensation system, digital monitoring to protect accident victims
Sindh Chief Minister Murad Ali Shah. PHOTO: Radio Pakistan
KARACHI:
Chief Minister Murad Ali Shah has approved making third-party motor insurance compulsory for all vehicles in the province, describing the initiative as a major step towards protecting road accident victims and enhancing road safety.
As per the new policy, no vehicle will be registered in Sindh and no token tax will be accepted unless the vehicle has valid third party insurance.
The decision follows amendments to the Sindh Motor Vehicles Ordinance, under which a new provision has been added to make insurance coverage mandatory for all registered vehicles.
Announcing the initiative, the chief minister said the provincial government had also approved a “no-fault compensation system” where victims of road accidents or their families would receive financial assistance regardless of who was responsible for the accident.
Under the framework, the heirs of a person who dies in a road accident will receive Rs.700,000, while those suffering from permanent disability will be entitled to Rs.500,000 in compensation.
CM Shah said the initiative was aimed at providing financial protection to families affected by road accidents.
“Providing financial security to road accident victims is our priority. This law will ensure that affected families are not left alone in difficult times,” he said.
The chief minister added that Sindh had also introduced Pakistan’s first digital insurance monitoring system to ensure transparency and effective enforcement of the law.
He directed the Sindh Excise, Taxation and Narcotics Control Department to ensure strict implementation of the new policy.
Provincial Revenue Minister Mukesh Kumar Chawla said vehicles without valid insurance will neither be registered nor allowed to pay token tax under the new rules.
Secretary Excise Saleem Rajput said the department had established digital verification of insurance policies through a link with the Securities and Exchange Commission of Pakistan (SECP) database to prevent fake or invalid insurance documents.
The new policy also requires valid transfer of vehicle ownership insurance, ensuring that any registered vehicle on the road has adequate third party cover.
Terming the initiative as an important milestone for road safety and consumer protection, CM Shah added that the law would especially benefit low-income families, who often suffer the most in road accidents due to lack of financial protection.
“The system is designed to ensure transparency so that the possibility of false assurances is eliminated,” he added.
He also directed the Department of Revenue to launch a public awareness campaign so that citizens could fully understand the benefits of the new law.
The Chief Minister appreciated the efforts of Revenue Minister Mukesh Chawla and his team to complete the legislative and administrative work required to implement the insurance framework.
“Along with tax collection, our real objective is to provide services to the public, which is why insurance has been linked with vehicle registration,” the CM said.
Review of the energy situation
CM Murad Ali Shah on Sunday held a meeting with Federal Finance Minister Muhammad Aurangzeb and Federal Petroleum Minister Ali Pervaiz Malik to review the evolving regional situation and its potential impact on Pakistan’s energy supply and economy.
The participants were given a detailed briefing on the rise in global oil prices and the country’s fuel reserves. Federal officials warned that if tensions in the Middle East escalate further, crude oil prices could rise to $120 a barrel, putting further pressure on Pakistan’s fragile economy.
The meeting also discussed emergency energy saving measures aimed at managing fuel consumption while ensuring continuity of economic activity.
On this occasion, CM Shah emphasized the need for responsible energy use and public cooperation. “The government’s priority is to keep the wheels of the national economy moving while managing the energy situation with prudence,” he said, adding that the proposals discussed during the meeting will be presented to the provincial cabinet for further consideration.
The meeting was informed that three cargoes of petrol were expected to reach Pakistan on Monday. But officials expressed concern about the possibility of hoarding at gas pumps.
Participants resolved to strengthen coordination between federal and provincial authorities to prevent hoarding and ensure uninterrupted fuel distribution nationwide.
