The Security and Exchange Commission of Pakistan (SECP) has released a diagnostic study providing a holistic synopsis of the existing landscape of Motor third-party insurance in the country.
The objective of this study was to present an in-depth overview of the legal framework applicable to motor third-party insurance, the current state of motor insurance, impediments in implementation and enforcement, recent initiatives taken by SECP and a way forward containing recommendations, said a press release issued here.
The study intended to serve as a starting point for discussion and collaborative action planning on the implementation of Motor third-party insurance among key stakeholders, including central and provincial authorities, SECP, and the insurance sector.
As per this study, motor insurance coverage in Pakistan is merely 3 per cent, which is way lower compared to other major countries within the region.
The current status of motor third-party insurance in Pakistan demands immediate attention. To increase motor insurance coverage and implement existing mandatory motor third-party insurance, the study provides policy recommendations for a multifaceted reform agenda. —APP
