A Blockchain-Based Approach for Usage Based Insurance and Incentive in ITS

With the increasing number of vehicles on the road, the insurance market for vehicular insurance is also increasing. There has been a massive proliferation in the number of policy taken by the drivers over the year. The traditional vehicular insurance processes used by the insurance companies rely on analyzing the history of the behaviors of the drivers for deciding the suitable premium amount to be paid by the vehicles. Usage-Based Insurance (UBI), which is based on telematics, turns out to be a modern and effective approach for providing insurance to the vehicles. Unlike the traditional approach, the premiums in the UBI are calculated based on the current behavior of the drivers. Moreover, there exists a lack of transparency in the processing of the claims, which not only results in delays of receiving the claims but also leads to a number of frauds. Decentralized technology such as blockchain turns out to be an effective solution for the problems mentioned above. In this work, we propose a blockchain-based framework for vehicular UBI and incentives in ITS. We demonstrate and analyze the feasibility of our work with proper experimental testbed setup.