Experts believe monetary relief should be determined on the basis of individual needs, circumstances
Wreckage of a speeding car that overturned on Shahrah-e-Faisal in Karachi. Photo: Express
KARACHI:
The Sindh government has made third-party vehicle insurance mandatory, but fixed pay-outs treat all accident victims the same, ignoring individual injuries and needs.
Under the third-party insurance framework, compensation fixed by the government will be paid in cases where passengers are injured or killed in an accident. The affected individual or their legal heirs will not be required to approach the courts for compensation, and the concerned insurance company will be legally bound to make the payment without court proceedings.
According to Jamshed Memon, Deputy Director of the Motor Registration Wing of the Sindh government, the new law has made third-party insurance compulsory, which was not required previously. Earlier, only vehicle insurance was mandatory, under which insurance companies compensated vehicle owners for damage to their vehicles. Third-party insurance refers to coverage for individuals travelling in the vehicle.
A Sindh Police officer tasked with analysing road accidents revealed that under the new amendment, the government has also increased compensation rates for passengers who are injured or killed in accidents involving insured vehicles. The Provincial Motor Vehicles (Amendment) Bill 2026 was recently passed by the Sindh Assembly, and details of compensation rates have been included in the Fifteenth (15th) Schedule of the bill.
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According to the prescribed rates, the relevant insurance company will pay Rs700,000 to the legal heirs of a person who dies in an accident. Compensation of Rs500,000 per person has been fixed for the loss of one or both hands, feet, arms, legs, or eyes.
Similarly, loss of the right-hand thumb will require compensation of Rs150,000, whereas loss of the left-hand thumb will be compensated with Rs100,000. Loss of a right-hand finger will be compensated with Rs100,000, while loss of a left-hand finger will receive Rs75,000. The schedule sets the lowest compensation for loss of toes. Loss of the big toe has been fixed at Rs30,000, while loss of any other toe will be compensated with Rs25,000.
Under third-party vehicle insurance systems, different countries determine compensation according to local conditions. In cases of death or injury resulting from road accidents, the highest compensation is paid in Japan, where 200,000 US dollars is paid for death, while compensation for serious injury and permanent disability has been fixed at 270,000 US dollars.
According to a Sindh Police officer, compensation for serious injuries in Japan has been set higher than compensation for death because severe injuries often result in permanent disability.
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In such cases, individuals may no longer be able to earn a livelihood and may require long-term or lifelong medical treatment. They may also have to undergo multiple surgeries, while complete recovery from serious injuries can take a prolonged period. Therefore, Japan and other developed countries keep compensation for permanent disability at a higher level.
Local lawyer Muhammad Ali Sarang noted that in developed countries, compensation amounts are determined based on the severity of physical harm suffered by a person. “While fixing compensation, authorities assess the extent of disability, whether it is permanent or temporary, and how much the injured person’s earning capacity has been affected. It is also considered how long the injured person will require medical treatment,” said Sarang.
According to Dr Muhammad Bakhsh, a medical practitioner from Jinnah Postgraduate Medical Centre, in most countries, compensation for injury to the right or left hand or foot is not different.
“However, in countries where compensation differs between the two sides, the general reason is that most people rely more on their right hand or foot for daily activities and employment, and therefore loss of the right side is considered more significant,” explained Dr Bakhsh.
