The Securities and Exchange Commission of Pakistan (SECP), in collaboration with the Punjab government, the Central Depository Company (CDC), and the Insurance Association of Pakistan, marked the go-live of a major digital integration to enforce motor third party insurance in the province.
The ceremony was attended by SECP Chairman Dr. Kabir Ahmed Sidhu, Secretary Punjab Transport Authority Hassan Ahsan, CEO CDC Badi-ud-Din, senior officials from insurance companies, and other stakeholders.
This initiative will directly benefit road users by ensuring that passengers, drivers, and third parties are financially protected and can receive timely compensation in case of road accidents.
Under this initiative, the Punjab government has made it mandatory for all public transport vehicles to obtain third-party motor insurance. All public transport route permits are now linked with this requirement, ensuring compliance before issuance and renewal.
Punjab has also digitized its Vehicle Route Permit Regime, which is now integrated with CDC’s Motor Insurance Repository for real-time verification of insurance policies, enhancing transparency, enforcement, and ease of doing business.
Speaking at the ceremony, Chairman SECP Dr Kabir Sidhu stated that the initiative reflects a shift towards digital enforcement and highlights insurance as a critical tool for financial protection. He emphasized the need for timely compensation for accident victims and stronger road safety measures.
He noted that while the repository currently contains data of around one million insured vehicles, this remains low compared to nearly 30 million vehicles on the roads, underscoring the need to expand insurance coverage nationwide.
SECP is also working on reforms, including introducing a no-fault regime and strengthening enforcement through amendments in the Motor Vehicles Act, 1939, while aiming to increase insurance penetration from 0.8% to 1.5%.
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