KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has announced a major increase in compensation for road accident victims in Sindh under the Motor Third-Party Insurance scheme, raising the payout from Rs20,000 to Rs700,000.
According to the SECP, the revised compensation will be provided through an automated claims system, enabling victims or their families to receive payments quickly without the need for lengthy court proceedings.
The regulator said the initiative is aimed at improving financial protection for road accident victims and ensuring faster access to compensation.
Sharp Increase in Commercial Vehicle Insurance
The SECP also reported a significant expansion in commercial vehicle insurance coverage, stating that insurance policies for commercial vehicles have increased by 1,300 percent.
The number of insured commercial vehicles has risen from approximately 11,000 to more than 165,000, reflecting wider compliance with insurance requirements and greater participation in the formal insurance sector.
Expansion Planned Across Pakistan
The commission said preparations are underway to extend the Motor Third-Party Insurance framework beyond Sindh to Punjab, Khyber Pakhtunkhwa, and Balochistan.
Once implemented, the expanded programme is expected to provide similar financial protection to road accident victims in other provinces.
New Insurance Products for Retirees
The SECP further announced that life insurance annuity products are being introduced for retired individuals. These products are intended to provide retirees with a regular stream of income after retirement and strengthen long-term financial security.
Crop Insurance and Takaful Sector Growth
In addition, the SECP said an insurance consortium has been established to support crop insurance, aiming to improve risk management for Pakistan’s agricultural sector.
The regulator also noted that the Takaful (Islamic insurance) sector now accounts for 14 percent of the country’s insurance market. To support the sector’s continued growth and regulatory oversight, the SECP has issued new operational guidelines for Takaful providers.
The commission said these measures are part of broader efforts to modernize Pakistan’s insurance industry, expand financial inclusion, and provide stronger protection for individuals, businesses, farmers, and retirees.
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