CM approves ‘no-fault’ compensation system, digital monitoring to protect accident victims
Chief Minister of Sindh, Murad Ali Shah. PHOTO: Radio Pakistan
KARACHI:
Chief Minister Murad Ali Shah has approved making third-party auto insurance mandatory for all vehicles in the province, describing the initiative as a major step towards protecting road accident victims and strengthening road safety.
Under the new policy, no vehicle will be registered in Sindh and no token tax will be accepted unless the vehicle has a valid third party insurance policy.
The decision follows amendments to the Sindh Motor Vehicles Ordinance, under which a new provision was 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 scheme”, under which victims of road accidents or their families would receive financial assistance, irrespective of who was responsible for the accident.
Under the scheme, heirs of a person who died in a road accident will receive Rs 700,000, while those suffering from permanent disability will be entitled to Rs 500,000 as compensation.
CM Shah said the initiative was aimed at providing financial protection to families affected by road accidents.
“Providing financial security to victims of road accidents 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 Excise Minister Mukesh Kumar Chawla said vehicles without valid insurance would neither be registered nor allowed to pay nominal tax under the new regulations.
Excise Secretary Saleem Rajput said the department has established digital verification of insurance policies through linkage with the Securities and Exchange Commission of Pakistan (SECP) database to prevent fake or invalid insurance documents.
The new policy also requires a valid insurance policy for the transfer of vehicle ownership, ensuring that every registered vehicle on the road has appropriate third-party coverage.
CM Shah termed the initiative an important step for road safety and consumer protection, adding that the law would particularly benefit low-income families who often suffer the most from road accidents due to lack of financial protection.
“The system was designed to ensure transparency to eliminate the possibility of false assurances,” he added.
He also asked the Excise Department to launch a public awareness campaign so that citizens can fully understand the benefits of the new law.
The Chief Minister appreciated the efforts of Excise Minister Mukesh Chawla and his team in completing the necessary legislative and administrative work for the implementation of the insurance framework.
“Apart from 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.
Assessment of the energy situation
CM Murad Ali Shah on Sunday held a meeting with Federal Minister for Finance Muhammad Aurangzeb and Federal Minister for Oil Ali Pervaiz Malik to review the developing regional situation and its potential impact on Pakistan’s energy supplies and economy.
Participants received a detailed briefing on rising global oil prices and the country’s fuel reserves. Federal officials have warned that if tensions in the Middle East escalate further, crude oil prices could rise as high as $120 a barrel, putting additional 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.
Speaking on the occasion, CM Shah highlighted the need for responsible use of energy and public cooperation. “The government’s priority is to keep the wheels of the national economy moving while prudently managing the energy situation,” he said, adding that the proposals discussed at the meeting would be presented to the provincial cabinet for further deliberation.
The meeting was informed that three consignments of petrol are expected to reach Pakistan by Monday. However, officials expressed concern over the possibility of storage at petrol pumps.
Participants decided to strengthen coordination between federal and provincial authorities to prevent hoarding and ensure uninterrupted distribution of fuel nationwide.
