ISLAMABAD: Motor insurance coverage in Pakistan is only three per cent, mainly due to the fact it is based on Motor Vehicles Act of 1939, says a study on motor third-party insurance released by the Securities and Exchange Commission of Pakistan on Monday.

The study, which provides a holistic synopsis of the existing landscape of motor third-party insurance in Pakistan, finds that motor insurance coverage in Pakistan is abysmally low in the region, where Sri Lanka’s penetration is 73pc, India’s 43pc and Bangladesh’s 36pc.

The study provides recommendations for a multifaceted reform agenda, to increase motor insurance coverage and implement existing mandatory MTPI. It also suggests awareness drive by the SECP, the Insurance Association of Pakistan, the National Highway and Motorway Police, provincial traffic police, exercise and taxation departments, motor registration authorities to ensure a safer and insured Pakistan.

Published in Dawn, August 1st, 2023