PTBP Web Desk
The Securities and Exchange Commission of Pakistan (SECP) has taken a major step toward transforming the country’s motor insurance landscape by directing all non-life insurers and general takaful operators to formally participate in the newly established Motor Insurance Repository (MIR). This move is being described as one of the most significant regulatory actions in recent years, aimed at strengthening compliance, improving transparency, and modernizing Pakistan’s insurance infrastructure.
The MIR initiative is designed to enhance the enforcement of mandatory motor third-party insurance, a requirement that has long suffered from weak compliance and the absence of a centralized verification system. With the new repository in place, authorities will be able to verify insurance coverage instantly, reducing the prevalence of uninsured vehicles on the roads and ensuring better protection for the public.
The Motor Insurance Repository Pakistan is a centralized electronic database formed under a Memorandum of Understanding (MoU) among all participating insurance companies, general takaful operators, and the Central Depository Company (CDC). The repository serves as a secure platform where motor insurance policies and claims data can be stored, updated, validated, and accessed by relevant stakeholders.
The SECP has made it mandatory for insurers underwriting motor vehicle insurance to sign a Service Level Agreement (SLA) with the CDC within 60 days. Once the SLA is signed, every insurer must submit complete, accurate, and validated policy information in accordance with the agreed-upon data standards. This data may then be shared—under strict confidentiality protocols—with federal and provincial authorities responsible for enforcement and verification.
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External link: SECP official updates can be accessed via www.secp.gov.pk.
Mandatory motor third-party insurance exists to protect victims of road accidents and ensure compensation mechanisms are in place. However, enforcement has remained inconsistent due to fragmented data and the absence of central oversight. The MIR directly addresses these challenges.
With real-time access to validated policy data, government departments, law enforcement agencies, and regulatory bodies will be able to verify whether a vehicle is properly insured at the time of inspection, registration, or during roadside checks. This reduces opportunities for fraud, helps curb the use of counterfeit or expired insurance certificates, and ensures that insurance coverage becomes both reliable and traceable.
The SECP believes that a unified repository will close longstanding compliance gaps and support the broader goal of strengthening Pakistan’s insurance ecosystem.
The establishment of the Motor Insurance Repository aligns closely with the SECP’s ongoing focus on digital transformation. Over the past few years, the regulator has pushed for adoption of electronic systems to modernize regulatory oversight, enhance transparency, and ensure better governance across the insurance and financial sector.
According to the SECP, the MIR is not just a data-collection platform—it represents a shift toward a fully digital, automated, and accountable insurance environment. By integrating insurers, takaful operators, and the CDC into one system, the regulator aims to ensure:
- Accurate policy records across all insurers
- Reduced manual paperwork and administrative inefficiencies
- Faster claim verification
- Stronger fraud prevention
- Improved consumer protection
This digital framework also allows policymakers and regulators to observe trends, evaluate risk, and make evidence-based decisions regarding road safety and insurance regulation.
One of the key benefits of the Motor Insurance Repository Pakistan is enhanced consumer protection. Motorists will no longer need to worry about fake policies or fraudulent intermediaries, as their policy data will be stored directly in a secure national repository. This ensures authenticity and provides motorists with peace of mind knowing their insurance documents are verifiable at any time.
Moreover, insurance companies will be held to higher standards of accountability. The shift toward digital verification means insurers must upload accurate data regularly, comply with updated regulatory requirements, and meet the technological expectations set by the SECP.
The SECP has emphasized that the MIR is not a standalone measure, but part of a broader restructuring effort aimed at bringing Pakistan’s insurance sector in line with global standards. Over time, the repository is expected to:
- Improve national compliance with insurance laws
- Reduce uninsured vehicle rates nationwide
- Support law enforcement and road safety mechanisms
- Encourage healthy competition among insurers
- Increase trust in Pakistan’s insurance sector
By ensuring interconnected, validated, and secure policy information, the repository lays the foundation for a more transparent and efficient insurance ecosystem.
The SECP stated that it remains fully committed to protecting the public interest, strengthening market integrity, and promoting digitalization across the insurance industry. The Motor Insurance Repository is a major component of these long-term goals.
According to the regulator, ensuring accurate, secure, and verifiable policy records will not only strengthen compliance but also build confidence among motorists, insurers, regulators, and all relevant stakeholders.
