The Punjab government, in collaboration with the Securities and Exchange Commission of Pakistan (SECP), the Central Depository Company (CDC), and the Insurance Association of Pakistan, has integrated Motor Third Party Insurance with the Route Permit System.
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 attended the agreement signing ceremony.
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 Government of Punjab 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 digitised 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, Dr Kabir Sidhu stated that the initiative reflects a shift towards digital enforcement and highlights insurance as a critical tool for financial protection. He emphasised 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 per cent to 1.5 per cent.
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