Key Takeaways
- Sindh government to provide Rs. 700,000 compensation for road accident deaths.
- Rs. 500,000 will be given to those with permanent disabilities from accidents.
- New insurance program aims to cover accidental death of every Sindh resident aged 18 and above.
The Sindh government has announced a series of insurance schemes aimed at providing financial protection for victims of road accidents, according to Chief Minister Syed Murad Ali Shah. Speaking at the Insurance Association of Pakistan (IAP) and Pakistan Society of Actuaries (PSOA) International Insurance Conference 2026 in Karachi, Mr Shah detailed the new measures designed to strengthen social safety nets.
Under these schemes, families of road accident victims who die will receive Rs. 700,000 in compensation, while those suffering permanent disabilities will be entitled to Rs. 500,000. Additionally, a new insurance program is being developed that will offer accidental death coverage of Rs. 100,000 for every Sindh resident aged 18 years and above.
The provincial government also plans to extend financial protection through additional insurance schemes covering the health and agriculture sectors. These initiatives are part of a broader effort to increase Pakistan’s insurance penetration rate, which currently stands at just 0.9 percent of GDP, compared to around 4 percent in neighboring countries and approximately 6 percent in developed nations.
Addressing the conference, Prime Minister’s Coordinator on Commerce Rana Ahsan Afzal Khan highlighted the federal government's role in upgrading its agricultural financing program by adding new features to better protect the sector. He also called for greater use of digital microinsurance through mobile phones to make insurance products more accessible and affordable.
Adviser to the Ministry of Finance and Revenue Adnan Pasha emphasized that increasing Pakistan’s insurance penetration to 2 percent of GDP could generate billions of rupees in additional economic activity. He noted that government initiatives in agriculture, housing, small and medium-sized enterprises (SMEs), and electric vehicles are expected to create new opportunities for the insurance industry.
Shoaib Javed Hussain, Chairman of the Insurance Association of Pakistan, underscored the need for innovation, stronger partnerships, and regulatory reforms to expand coverage, particularly in crop and health insurance. He stated that Pakistan’s insurance density stands at just $14 per person, far below the global average of around $60.
The conference, which was attended by over 500 insurance executives, actuaries, regulators, policymakers, and international experts, focused on reimagining Pakistan's resilience through insurance. The theme 'Reimagining Pakistan’s Resilience: Building a Sustainable Future Through Insurance' highlighted the importance of these initiatives in enhancing the country's economic and social stability.
The new compensation schemes are expected to provide significant relief to families affected by road accidents, while also contributing to the broader goal of increasing insurance penetration and economic growth.
