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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 Karamat Ullah Hussainy
  • Salman Bashir

    (Khadim Ali Shah Bukhari institute of Technology (KASBIT), Karachi.)

  • Syed Luqman Hakim

    (HIMS-IT- Hamdard University, Karachi.)


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.

Suggested Citation

  • Syed Karamat Ullah Hussainy & Salman Bashir & Syed Luqman Hakim, 2009. "Popularity of Tracking Device as an Anti-theft Measure and Impact of its sales on Sales of Auto Insurance Policies: Evidence from Karachi, Pakistan," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 3(2), pages 54-66, December.
  • Handle: RePEc:iih:journl:v:3:y:2009:i:2:p:54-66

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    Tracker Devices; Auto Insurance; Sales; Theft; Third Party Liability.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance


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