The recently updated Sindh insurance law aims to protect accident victims under a mandatory third-party vehicle insurance system. But critics say its fixed compensation approach falls short of real needs, leaving many injured travellers undercompensated.
Under the new framework, vehicle owners must carry third-party insurance that pays set amounts for injuries or death in a crash, and insurers must pay without victims going to court. Officials say this system simplifies access to financial relief. However, many believe the Sindh insurance law fails to recognise individual circumstances and the real costs of recovery, pushing some victims into financial strain.
Government guidelines fix compensation at Rs700,000 for fatalities and specific sums for different injuries, such as Rs500,000 for loss of limbs or eyes and smaller amounts for fingers or toes. While this ensures a payout for every claim, lawyers and accident specialists argue that rigid amounts under the Sindh insurance law ignore varying medical needs, long-term disability costs and livelihood loss.
Experts point to global practices where insurers assess each case individually, considering severity of harm, earning potential and ongoing treatment needs, resulting in higher, fairer compensation. In contrast, fixed schedules in Sindh may leave seriously injured people struggling to cover medical bills and rehabilitation costs, highlighting gaps between policy intent and real-world impact.