Publication Type:

Journal Article


Rejikumar G.


IIMB Management Review, Volume 25, Number 1, p.19-27 (2013)



Acceptance intentions, Motor insurance, Structural equation modelling, Usage based premiums


This study was designed against the backdrop of observations that the motor insurance pricing in India requires radical innovations to become more acceptable, fair, and affordable to customers. Customer perceptions about usage based pricing were collected using a structured questionnaire. The model containing critical variables was validated to identify statistically significant linkages among perceived individual benefits, perceived social benefits, perceived value, perceived easiness to understand and acceptance intentions. The perceived risk to privacy was not found to influence the acceptance intentions of the customer. The study concluded that customers are likely to accept the concept of usage based pricing once implemented. © 2012 Indian Institute of Management Bangalore.

Cite this Research Publication

Rejikumar G., “A pre-launch exploration of customer acceptance of usage based vehicle insurance policy”, IIMB Management Review, vol. 25, pp. 19-27, 2013.