The government of Sindh has made third-party insurance mandatory for every vehicle in the province, officials said on Sunday, introducing a new system linked to registration and tax collection.

According to the spokesperson for Chief Minister Murad Ali Shah, vehicles will not be registered, and token tax will not be collected without an insurance policy.

The spokesperson said the chief minister has approved a no-fault compensation system for road accidents.

Under the policy, the heirs of those killed in accidents will receive Rs700,000, while those who suffer disability will be compensated with Rs500,000.

The government said Pakistan’s first modern digital insurance monitoring system has been activated in Sindh following amendments to the Sindh Motor Vehicle Ordinance, which added a new section to the law.

The chief minister has directed the Sindh Excise Department to ensure strict implementation of the legislation.

Officials said it will now also be mandatory to have a comprehensive insurance policy for the transfer of vehicles.

Murad Ali Shah described the step as important for road safety and consumer protection, saying financial protection for victims of road accidents is a priority.