Punjab has taken a significant step toward modernizing its public transport infrastructure by fully digitalizing its route permit system and integrating it with the Securities and Exchange Commission of Pakistan’s insurance repository. The move enables real-time digital verification of third-party motor insurance, marking a notable shift in how the province regulates and monitors its public transport network. The integration was officially launched at an event held at SECP, with senior officials in attendance.
Under the new framework, the issuance and renewal of route permits for public transport vehicles will be contingent upon the submission of valid third-party insurance. This means that any transport operator seeking a route permit, or looking to renew an existing one, must first demonstrate active insurance coverage before the permit is processed or approved. The policy is aimed at ensuring financial protection for passengers, drivers, and any third parties who may be affected in road accidents, addressing a long-standing gap in accountability within the public transport sector. By tying the permit process directly to verified insurance data, the provincial government is looking to close the loopholes that previously allowed uninsured vehicles to continue operating legally on public roads.
Speaking at the launch event, Dr. Kabir Sidhu noted that SECP’s insurance repository currently holds data for close to one million vehicles across the country. He acknowledged, however, that insurance coverage still remains limited relative to the total number of registered vehicles in Pakistan, and indicated that emergency measures are already being put into motion to expand coverage at a broader scale. The integration with the digital permit system is expected to create an indirect incentive for transport operators to obtain insurance, as doing so becomes a prerequisite for continuing operations rather than an optional compliance measure.
Dr. Sidhu also referred to proposed amendments at the federal level that would introduce third-party insurance on a no-fault basis. Such a provision, if enacted, would ensure that individuals involved in road accidents receive timely compensation regardless of which party is determined to be at fault, a measure that could have far-reaching implications for road safety policy and insurance uptake across Pakistan. Punjab’s digitization of its transport permit system, combined with these broader legislative considerations, signals a coordinated effort between provincial and federal authorities to strengthen the regulatory framework governing motor insurance and road transport in the country.
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