The Sindh cabinet has approved the enforcement of mandatory motor third-party insurance across the province from the next financial year, aiming to ensure compensation for victims of road accidents and insurance coverage for vehicle owners. The decision was taken during a cabinet meeting chaired by Chief Minister Syed Murad Ali Shah at the CM House.
Read More: Sindh excise minister chairs meeting to discuss Motor Third Party insurance act
The cabinet reviewed the implementation framework for motor third-party insurance and agreed that amendments to existing motor vehicle laws would be presented before the Sindh Assembly for approval. These amendments include changes to the Motor Vehicles Ordinance, 1965, and Sections 19 and 20 of the Motor Vehicles Act, 1939, to provide the necessary legal cover for enforcement.
وزیر اعلیٰ سندھ سید مراد علی شاہ کی صدارت میں کابینہ کا اجلاس
اجلاس میں صوبائی وزراء، مشیروں، خصوصی معاونین، چیف سیکریٹری آصف حیدر شاہ اور متعلقہ سیکریٹریز و افسران شریک
کابینہ کے اجلاس میں 12 ایجنڈا آئٹمز شامل ہیں جن پر غور کے بعد فیصلے کیے جائیں گے، ترجمان وزیراعلیٰ سندھ… pic.twitter.com/44lMvgRv5j
— Sindh Information Department (@sindhinfodepart) December 30, 2025
Under the proposed amendments, motorcycles will be exempted from mandatory third-party insurance. The cabinet also approved a reduction in stamp duty on third-party motor insurance from Rs500 to Rs50 and a cut in sales tax from 15 per cent to 5 per cent, with the aim of making insurance more affordable for vehicle owners.
On the chief minister’s directions, the Excise Department consulted the Insurance Association of Pakistan to simplify and standardise the claims process. The department was instructed to establish insurance facilitation desks to guide the public, particularly accident victims and their legal heirs, and to ensure uniform premium rates across the insurance industry.
The cabinet also decided to set up a 24/7 helpline and deploy insurance surveyors to assist victims in filing claims and navigating legal procedures. The chief minister stressed that compensation must be ensured in all cases involving duly insured vehicles.
In addition to the insurance decision, the cabinet approved agreements allowing The Citizens Foundation (TCF) to manage 21 selected municipal schools in Karachi. Under the arrangement, TCF will oversee construction, renovation and management of the schools for 25 years, while town municipal corporations will provide land and buildings free of cost.
Read More: Sindh Assembly passes Rs3.45tr budget for FY 2025-26
The cabinet also approved funding for industrial area development, amendments to streamline the role of the Inter-Provincial Coordination Department, and changes to land revenue laws to enable digitalisation of land records and e-transfer of land titles across Sindh.