Popularity of Tracking Device as an Anti-theft Measure and Impact of its sales on Sales of Auto Insurance Policies: Evidence from Karachi, Pakistan

Syed Hussainy (), Salman Bashir and Syed Luqman Hakim
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Salman Bashir: Khadim Ali Shah Bukhari institute of Technology (KASBIT), Karachi.
Syed Luqman Hakim: HIMS-IT- Hamdard University, Karachi.

Indus Journal of Management & Social Science (IJMSS), 2009, vol. 3, issue 2, 54-66

Abstract: In this paper attempt has been made to examine the popularity of tracking devices and its impact on the sales of automobiles insurance policies. Literature review revealed that people insure their vehicles to protect them from theft as well as from other perils such as fire, SRCC, accidental losses and third party liability. The coverage is mainly obtained to prevent theft, which has the major significance. Insurance companies have been trying since a long time to curtail the cost of theft, which is the major cause for higher premium rates. To achieve the objectives of this study Non Probability Technique known as Purposive Sampling is applied, based upon questionnaire survey from a representative sample of tracker and insurance service users. This research revealed that blending the motor insurance policies, with tracker devices, have successfully attracted the major chunk of market and have gained access to a larger segment of the market, offering packaged policies with discounted premium rates and hence the loss ratio has declined with the use of these devices, which ultimately affects the premium rates. The researchers tested the relationship between tracker sales and insurance policy sales. The research revealed significant insights into the relationship.

Keywords: Tracker Devices; Auto Insurance; Sales; Theft; Third Party Liability. (search for similar items in EconPapers)
JEL-codes: D31 D91 G22 G34 (search for similar items in EconPapers)
Date: 2009
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