Islamabad, 1 April 2026 – The Securities and Exchange Commission of Pakistan (SECP), in partnership with the Government of Punjab, the Central Depository Company (CDC), and the Insurance Association of Pakistan, has launched a landmark digital integration to enforce motor third-party insurance in the province.
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The launch ceremony was attended by SECP Chairman Dr. Kabir Ahmed Sidhu, Secretary Punjab Transport Authority Hassan Ahsan, CDC CEO Badi-ud-Din, senior insurance officials, and other stakeholders.
Under the initiative, all public transport vehicles in Punjab are now required to hold valid third-party motor insurance before route permits can be issued or renewed. The province’s digitized Vehicle Route Permit system has been linked to CDC’s Motor Insurance Repository, enabling real-time verification of insurance policies and improving transparency, enforcement, and ease of doing business.
Dr. Sidhu highlighted that the project underscores the importance of insurance as a critical tool for financial protection. “This digital enforcement ensures timely compensation for accident victims while promoting stronger road safety measures,” he said.
While the repository currently holds records of around one million insured vehicles, Dr. Sidhu noted this figure remains small compared to the nearly 30 million vehicles on Punjab roads, highlighting the need to expand insurance coverage nationwide.
SECP is also pursuing reforms including the introduction of a no-fault regime and amendments to the Motor Vehicles Act, 1939, aiming to increase insurance penetration from 0.8 percent to 1.5 percent.
