WEB BASED OROMIA INSURANCE COMPANY MANAGEMENT SYSTEM

BY

1. SABONA SOLOMON DAFA RU/3128/10

2. JARSO LIBAN RU/3109/10
3. MESFIN AYINETE RU/3263/09

ADVISORS

1. SELAMU
2. TADU

A research project proposal submitted to

The Department of information science for the partial fulfilment of the requirement for the
degree of Bachelor of Science in information science

BULE HORA UNIVERSITY

Bule Hora, Ethiopia

February 4, 2020
ABSTRACT
The present system of the Oromia insurance companies is characterized by the manual method
as a result serious threat has been posed to the operation of the service and too much workload
on the staffs. The manual method involves the marketing staffs moving from one location to the
other to meet up with the requirement of their broker and also the files and data of their broker
are stored in cabinet which are easily destroyed by rodents. With regards to this method the web
based Oromia insurance company would be developed this would have the ability to remotely
connect insurance brokers in any location for them to carry out their insurance services and also
their data would be stored in a secured database. In the web based design, to achieve this task
we intend to use the font end implementing as well as designing the system and back end as the
database to store the information.

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Contents
ABSTRACT.................................................................................................................................................i
List of table................................................................................................................................................iii
CHAPTER ONE: INTRODUCTION..........................................................................................................1
1. Introduction.....................................................................................................................................1
1.2 Background of the study..............................................................................................................2
1.3 Statement of the problem.............................................................................................................3
1.4 Objective......................................................................................................................................3
1.4.1 General objective.................................................................................................................3
1.4.2 Specific objectives...............................................................................................................3
1.5 Significance of the project...........................................................................................................4
1.6 Scope of the project.....................................................................................................................5
1.7 Operational definition..................................................................................................................5
CHAPTER TWO: LITERATURE REVIEW..............................................................................................6
2.1 literature review.................................................................................................................................6
CHAPTER THREE: DESIGN AND METHODOLOGY OF THE STUDY...............................................8
3.1 Design method...................................................................................................................................8
3.2 Method of data collection..................................................................................................................8
3.3 System analysis.................................................................................................................................9
3.3.1 Existing system...........................................................................................................................9
3.3.2 Proposed system.......................................................................................................................10
3.4 Feasibility study...........................................................................................................................10
3.5 Project requirement..........................................................................................................................11
3.5.1 Functional.................................................................................................................................11
3.5.2 Non Functional.........................................................................................................................12
3.5.3 Software requirement................................................................................................................13
3.5.4 Hardware requirement..............................................................................................................13
CHAPTER FOUR: SCHEDULE AND BUDGETING.............................................................................14
4.1 Schedule..........................................................................................................................................14
4.2 Budgeting........................................................................................................................................15

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REFERENCE...........................................................................................................................................16

List of table

Table 1: software to be used………………………………………………………………….….12

Table 2: hardware to be used……………………………….…………...…………………….…12

Table 3. Schedule of the project…………………………………………………………….

…....13

Table4.Cost break
down………………………………………………………………………….14

CHAPTER ONE
Introduction
In today’s world, life is full of risk so everyone wants to make himself secure, everyone wants to
keep them on the safe side policy that plays a vital role and provide them insurance about their
health security, car’s security, accident security etc. The value of insurance lies in the protection
it affords from losses arising from risk control failures or from other causes. [ CITATION sar20 \l
1033 ]

The Insurance management system is a complete solution for organizations, which need to
manage insurance for their vehicles, equipment, buildings, and other resources. This Oromia
insurance management system can efficiently manage the company, records, provides instant
access and one that improves the productivity. The main objective of the developing this system
is to allow admin users to register insured persons with their name, date of birth, residence
address, medical history and also policy details. In this process contains the user registration
form which is used to apply for insurance policy through our web. [ CITATION Ode18 \l 1033 ]

Web based Oromia Insurance management system is a web application which is developed for
tracking the details of the insurance policy, customer details and company details of the

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company. This web based insurance Analysis and information management system that provides
easy access of information regarding the people and resources of insurance. User can view their
own personal details when login into the Policy Holder module. This project is useful for any our
insurance company to manage the insurance details, to sanctioned the insurance for customer,
process the insurance policy details and all kind of insurance process through our purposed web
based technology.

Our purposed system will support visitor with minimum knowledge of web browsing/surfing can
access the site very easily. The developed system should allow admin users to register insured
persons with their name, date of birth, residence address, medical history and also policy details.
After registering all the insured persons, website should provide management facilities like
delete unwanted persons’ data. And also should provide awareness to the visitors about micro
insurance through articles.

1.2 Background of the study

According to Oromia insurance company website, this insurance company is a company that
offers insurances policy either by selling directly to an individual or through another source such
as an employee’s benefit plan. An insurance company is usually comprised of multiple insurance
agents. An insurance company can specialize in one type of insurance, such as life insurance,
health insurance, auto insurance or offer multiple types of insurance.

Oromia Insurance Company was established and licensed by the National Bank of Ethiopia on
26th January 2009 G.C to engage in general insurance business.

It commenced its operation on 9th February 2009 G.C. The Company was established by 540
founding shareholders with a paid-up capital of Birr 26 million and a subscribed capital of Birr
85 million. At the end of 2016/17 G.C, the number of shareholders reached 840, the paid up
capital rose to Birr 155.2 million and the subscribed capital also rose to 250 million.

This clearly demonstrates the fact that the Company commenced its operation with a strong and
reliable financial capacity, being the first of its kind to mobilize such a huge amount of paid-up
capital in the country’s insurance industry.

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The Company has crafted suitable mission that is customized to address the acute needs of its
customers and has also developed reliable and continuously improving strategic plans which will
help to ensure the realization of its vision.

Taking into consideration the needs of those low income farmers who became shareholders of
the Company through their farmers’ cooperative unions, OIC(Oromia insurance company) also
launched Micro insurance products (crop & livestock) in 2010, i.e., about a year after its
establishment. Life Insurance operation then followed in 2012 G.C.

The Company already achieved most of the targets set for its first strategic plan and is now
implementing its second strategic plan that will serve until 2020/21 G.C budget year.

Currently, OIC has 38 full-fledged branch offices and 3 contact offices throughout the country. It
also works with a number of sales agents, all insurance brokers as well as banks in the country.
[ CITATION com19 \l 1033 ]

1.3 Statement of the problem

At present, the public can only know about the insurance events through conventional media
means such as radio, newspaper or television advertisements. There is no detailed information
regarding the insurance programs available on any of the portal.

The current system that our insurance company (Oromia Insurance Company) use is manual
system. With the manual system, there are problems in managing the client records. The records
of the client might not be kept safely and there might be missing of client records due to human
error or disasters. Besides that, errors might occur when the staff keeps more than one record for
the same client.

There is no centralized database of which hold the information of user, policy, agent and other
entities in our insurance company. So, it becomes really tedious for our company to search
records of its client in case of emergency. The only option is to manually search and match client
and then make phone calls to every single of client, which is costly and annoying.

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 1.4 Objective

1.4.1 General objective

The general objective of our project is to develop web based management system for Oromia
Insurance Company.

1.4.2 Specific objectives

To achieve a general objective mentioned above the project will have the following specific
objectives in hands.

 To examine the literature review.

 To manage the information of client and policy and agent.
 To develop automated system.
 To track all the information of client and policy and agent.

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  To identify the problem under the existing system.
 To study the existing system and provide solution.
 To show, edit, add and update the records in our insurance company.
 To provide the searching facilities based on various factors, Client, agents, policy as well
as the company itself.

1.5 Significance of the project

In the modern world, with all the complexities involved in developing a web based system that
will certify user’s needs. Management requires well-structured and versatile web based system
that would meet user’s needs at all point irrespective of the location provides the resource such
as internet facility is available to ensure remote access. So to meet the user need and
standardizing our company we have to develop web based system. [ CITATION OGE131 \l
1033 ]
Additionally, Insurance has evolved as a process of safeguarding the interest of people from loss
and uncertainty. It may be described as a social device to reduce or eliminate risk of loss to life
and property. The finding of this project will have redound to the benefit of managing the
information our insurance company. Furthermore, Insurance contributes a lot to the general
economic growth of the society by provides stability to the functioning of process. The insurance
industries develop financial institutions and reduce uncertainties by improving financial
resources.[ CITATION OGE131 \l 1033 ]

The main advantages of our purposed system are:

 The insurance company center staff can find and manage the client details on the system
easily.
 The project will collect, store and provide insurance activities. Reduced cost and effort.
 Minimizing the processing time or increase speed of activity.
 Simple to use and avoid data loss.
 Avoid document missing and material wastage.
 The system will be quick and user friendly.
 The system provide good documentation about the client, agents along with their activity.

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 1.6 Scope of the project
The scope of this project means that which modules are being covered by the system. The scope
clearly defines the boundaries of the purposed system. The function areas of this system that lies
under the purposed system are managing record of the policy holder, agent details, policy details
and other features at any time. Due to time-constraint, respondents will be from West Guji zone
only, though the project deals about Oromia insurance company that founded in West Guji Zone
Bule Hora Town.

Generally, the scope of this project will be Developing Web based Management System
for Oromia insurance company. Those listed bellows are some features under our system
scope:-

 Register the client.

 Manage the information of client and agents.
 Perform tasks like: - add, delete, modifying existing records, register.
 provide filter report policy, our company and stock
 Show the information and description of the company activity.

1.7 Operational definition

 Insurance: A promise of compensation for specific potential future losses in exchange
for a periodic payment. Insurance is designed to protect human lives.
 Policy: rule that guide certain operation.
 Service: A type of economic activity that is intangible is not stored and does not result in
ownership. A service is consumed at the point of sale.
 Company: A voluntary association formed and organized to carry on a business. Types
of companies include sole proprietorship, partnership, limited.
 Web base: Access only from the internet
 Modern: new age with different approach of doing things
 Strategy: Method applied in doing certain work
 Qualities: great features of certain entity that differentiate others.
 Organization: A cooperative society with equal motive and goal.
 Remote location: Anywhere around with access to internet
 Access: Authorization to gain entrance.
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 CHAPTER TWO
2.1 literature review
According to Richard (2009) at the Simpson magazine New York, the web based application can
be also described as an aspect of electronic commerce. Electronic commerce (EC) comprises
new ways of doing business with customer, suppliers and other business partners that is,
rendering the required service through web based application. EC is enabled by information and
communication technology, in particular, the World Wide Web (in short, the web). While of
numerous organizations have started to use the web as an interface to clients and business
partners, many have been disappointed by lower than expected response rates and higher than
expected costs.[ CITATION OGE13 \l 1033 ]

As defined by QOURA (journal article) web information system or web based system is system
that uses internet web technology’s to deliver information and services to users or other
information systems/application. It is a software system whose main purpose is to publish and
maintain data by using hypertext-based principles. [ CITATION Atl17 \l 1033 ]

As defined by Insurance Institute of Michigan Insurance basically involves a group of people

agreeing to share risks.  It is a very old idea which started back when sailing ships got destroyed
or lost their cargoes.  Merchants found that by dividing their cargoes among several boats, they
protected themselves from total financial ruin.  That way, if one of the boats was destroyed, no
merchant lost everything.  Each stood to lose only a small portion.[ CITATION Mic20 \l 1033 ]

Today there are many forms of insurance like life, health, home and auto mobile are just a few. 
When you buy insurance, you join many others who pay money to an insurance company.  The
insurance company uses the money collected to pay claims that are submitted by those who have
purchased insurance.  The money is “pooled” and losses and expenses are shared.  An important
aspect is the members of a pool share similar risk characteristics.[ CITATION OGE13 \l 1033 ]

When you buy insurance, you get a policy.  That policy is a legal contract.  It spells out exactly
what you are buying; it lists what is covered and what is not.  It lets you know how much you
must pay (the premium) and when it must be paid.  You need to read your policy and try to

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understand it even if it seems complicated.  You should contact your agent or your insurance
company representative and ask questions about anything you do not understand. 

Insurance agents sell policies for an insurance company.  Some agents work exclusively for one
company, sometimes referred to as captive agents.  Others sell for many different insurance
companies (these are called independent agents).[ CITATION OGE13 \l 1033 ]

Informed by a good deal of data and empirical literature, the book examines the past and present
performance of insurance business, reflects on the type and nature of insurance policies, the legal
and public policy context in which the insurance industry has been operating under different
regimes, identified the plethora of critical problems that the industry faces, and underscores
domestic and global challenges that insurance business is likely to grapple with in the future.
Furthermore, not only does it see the formations of Association of Ethiopian Insurers (AEI) and
Society of Insurance Professionals (SIP) as newly emerging positive developments contributing
significantly towards articulating and safeguarding the interests of personnel involved in the
insurance business, but also the couple of linked associations serve to promote professionalism in
the insurance industry.[ CITATION Zel09 \l 1033 ]

Hailu (2007: 84) summed up:

the insurance sector during the command economic system was characterized by monopoly of
the sector by the government, lack of dynamism and innovation, volatile premium growth
rates ... and reliance on a couple of classes of insurance business (motor and marine) for much of
gross premium income. The nationalization of private insurance companies, the restrictions
imposed on private business ventures, and management of the insurance sector... had significant
adverse impact on the development and growth of Ethiopian insurance industry.[ CITATION
Zel09 \l 1033 ]
So, after we conduct literature review we came with idea of adding some feature that did not
included in previous researchers while keeping those features that seems useful to us. The
researchers mainly focus on specific policy and they treat some insurance policies like, home
insurance, vehicle insurance, agent insurance and other policies that provided by insurance
companies independently. We want to improve this by bringing those policies that mentioned

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above under single system. Thus our system will be more effective and have more advantages
than those system listed above under literature review.

CHAPTER THREE:
DESIGN AND METHODOLOGY OF THE STUDY
3.1 Design method
We are going to develop a method for analysis and design of Oromia insurance management
system, and tools to support the method. The method and the tools focus on architectures and
functions of Web sites, rather than on appearance of each Web resource (page), such as graphics
and layouts. Our goal is to efficiently develop Oromia insurance management system that best
support the company business processes at lowest maintenance cost. Our method consists of two
approaches, static and dynamic. We will use the entity relation (E-R) approach for the static
aspects of Oromia insurance management systems, and use scenario approach for the dynamic
aspects. The E-R analysis and design, based on relationship-management methodology
(RMM).in addition we will defines what entities are and how they are related. The scenario
analysis defines how our Web resources are accessed, used, and changed by whom. The method
also defines attributes of our Web, which are used in maintaining the resource.

3.2 Method of data collection

In order to complete this project successfully, collecting data from primary sources and
secondary source is mandatory. So, we collect data primarily from the organization that we are
going to develop web based system and secondly from many websites by searching the most
appropriate document to our query. Specifically in order to determine problem identification and
specification as well as to find solution for those problem we identify and specify we use the
following methods.

 Interview: To collect detailed information about the Oromia insurance company we like
to use interview as data collection method. Also we used interview to gather data about
company client requirements. We use interview to get answers in details so we ask them
questions like the their objectives, the existing system that they use, their role and

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 acceptance in the society and so many more questions that will help as to accomplish this
project in well determined manner.
 Observation: as we identify firstly their existing system that means manual system from
interview method we observe that the problem that may face the company as well as the
users by using this manual methods. Though we observe that this manual system of our
company is time consume, unsecured database as well as no central database to store data
that are in the company and there is difficulties in managing their whole activity.
 Document Analysis: we use many journal articles, research articles, research journal
generally, WWW (Word Wide Web) as well as books in the library that have similarity
with our project we use document analysis method.

3.3 System analysis

System Analysis is a detailed study of the various operations performed by a system and their
relationships within and outside of the system. Here the key question is- what all problems exist
in the present system what must be done to solve the problem Analysis begins when a user or
manager begins a study of the program using existing system. In our existing system all the
transaction policy are done manually, So taking more time for a transaction like accessing data of
agent and customer is not accurately possible.

3.3.1 Existing system

In the existing Oromia Insurance Management System, the work is done by manually. All the
details for the insurance such as record of the policy holder, agent details, policy details and or
related important information was collected into the hard copy and by chance if any of the
document get missed up or get harmed then whole of the information will be missed, resulted
into the major loss for the user.

In addition, adding all the details manually will take a lot of time and also a lot more chances of
entering the information wrong. And also sending details from one place to another will not be
any task because in case while sending one important document from one place to another, it get
lost, then also it will proved to a great loss both for the user as well as for the organization.

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3.3.2 Proposed system
In the proposed system, all the work will be digitalized and is done via computers and internet.
All the details regarding the organization will be added via computer and the information data is
being saved in servers. Backup should be there in case if by chance any of the information will
be lost.

Time consume will be reduced and users will get any easy way to access their insurance related
information and new upcoming schemes. Users just have to click on the button and just have to
wait for some moments and they get an easy access to their information.

Our Proposed system is to develop web based Management System for Oromia Insurance
Company.

Our proposed system has the following advantages.

 User friendly interface.
 Fast access to use and Search facility.
 Less error and Easy storage and retrieval of information.
 More Storage Capacity and Secured database.
 Look and Feel Environment.
 Efficient from any remote location.
 Claims are processed very fast and efficient.

3.4 Feasibility study

After doing the Oromia insurance management system study and analyzing all the existing or
required functionality of the system the next task is to do the feasibility study for the project. All
project are feasible give unlimited resource and infinite time.

Feasibility study include consideration of all possible way to provide the solution to the given
problem. The purposed solution should satisfy all the requirement and should be flexible enough
so that future change can be easily done based on the future upcoming requirement.

3.4.1 Operational

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The operational scope of this project is mainly focus on Oromia insurance company that is
located in west Guji zone Bule Hora town. And by providing the company computerized system
the user or the client as well as agents and company itself can have fast access and as well as fast
work. This project try’s to reduce the human issue means by reducing the amount of worker by
providing systematic way.

3.4.2 Economical

Our purposed system is economically feasible than that of existing/manual/ system that company
is using. Hence why the manual system pay a huge amount of resource for papers, cards, labor
works and so many more. While in our purposed system this all activity can be done within small
amount of time without using human labor and resources that manual system do. This simple
explanation determines why our purposed system is economically feasible than the manual
system that we are going to automate.

3.4.3 Technical

In technical feasibility study, one has to test whether the purposed system can be developed
using existing technology or not. For this, the web based development of this project is team as
certain whether the current resources and technology can be upgraded or added in the website to
accomplish specified user requirements. Technical feasibility also performs the technical skill,
our team member, and determine whether the relevant technology is stable and established.

3.5 Project requirement

When we are going to analysis the requirement of the web based Oromia insurance management
system we have to analysis in the following way.

3.5.1 Functional
The functional requirement of the proposed system needed to ensure efficiency of the proposed
system, maximization of feature provided in the system and the convenience of all the levels of
the system user are listed below:
 Each page in the site needs to load in a small amount of time

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  An exception handler should be implemented to manage input mismatch which can result
to infinite process
 Mechanism for cancelation and changing operations should be employed
 Latest web techniques like Caching should be implemented to speed up the loading of
dynamic pages.

Additionally, in this section we are going to see the functional requirement analysis of this
project that means what our project is going to do directly.

1. User can login to the system/log in.

2. Admin can add, delete, view, and search the data of policy holders.
3. This system provide the background, mission, and vision of the insurance company.
4. Minimize the number of paper work.
5. User can contact us using the place provided to them in the system.
6. Our system will going to help the user by providing the clue about the system.

3.5.2 Non Functional

Unlikely in this section we are going to see the non-functional requirement analysis of the
project. As the name indicate we are going to see the non-functional property of the system.
Nonfunctional requirement is that it essentially specifies how the system should behave and that
its constraint upon the system behavior. Those are:

1. Performance: the system have to work accurately towards the serving of students
according to the user needs.
2. Reliability: The system should accurately performs client registration, policy holder data,
report generation and another added features.
3. Security: the system have to be serious in the context of security. For the user and the
server reliability as well as confidentiality.
4. Environmental: the system have to cope with the surrounding environment.
5. Usability: The system is designed for a user friendly environment so that client and the
company agents can perform the various tasks easily and in an effective way.

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 6. Efficiency: this project will be implemented so that client and agent will easily access
their data in effective way. Similarly, There following are the non-functional
requirements that concern with our proposed system:

3.5.3 Software requirement

Software is the set of programs written to achieve a specific task and the software requirement
for this operation include:

No. Software Specification

1 Browser To search information

2 word 2010 To write all activity project(documentation)
3 Dream weaver C6 To develop the system(coding, designing)
4 Notepad++ To develop the system(coding, designing)
5 XAMMP control panel To store data (used as database)
Table 1: software to be used.

3.5.4 Hardware requirement

Hardware is the machines, wiring, and other physical components of a computer or other
electronic system. Thus the hardware requirement for our project include:

No. Hardware Capacity Specification

1 Removable flash disk 16GB To store data
2 Computer 2GB RAM To do all activity in the project.
3 Smart phone 16GB To edit as well as read.
4 Paper/pen - To take a notes.
Table 2: hardware to be used.

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 CHAPTER FOUR
SCHEDULE AND BUDGETING
4.1 Schedule
A project schedule is a tool used to help manage resources and tasks, and it will help to guide
a project to a successful completion. The schedule lists the tasks to be completed during
the project as well as identifying what resources personnel and materials are necessary to
complete the task.

No Oct Dec Jan Feb Mar Ap May June

Tasks v r
Title selection

Planning
Data collection
Literature review
Proposal submission
Proposal presentation
Design the project

Interface design

Design the database(coding)

Testing

Error handling

Document writing
Final project Presentation

Table 3. Schedule of the project.

Keys:

: It indicates the works which is completed

: It indicates the work which is not completed

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4.2 Budgeting
The Project Budget is a tool used by project managers to estimate the total cost of a project. A
project budget template includes a detailed estimate of all costs that are likely to be incurred
before the project is completed.[ CITATION Wha \l 1033 ]

No. Item Description Quantity Unit Unit Price Total price

1 Removable flash disk 2 Birr 200.00 400.00

2 Binding 2 Birr 30.00 60.00
3 Paper 2 pack Birr 70.00 140.00
4 Pencil 4 Birr 5.00 20.00
5 Pen 10 Birr 10.00 100.00
6 Printing 3 Birr 50.00 150.00
7 Computer(pc) 1 birr 20000 20000
Total 20870

Table 4. Cost break down

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https://www.oromiainsurancecompany.com.et/. [Accessed monday january 2020].

[4] E. F. OGECHUKWU, "WEB BASED APPLICATION FOR INSURANCE SERVICES," JULY

2013.. [Online]. Available:
https://www.sau.edu.ng/materials/WEB_BASED_APPLICATION_FOR_INSURANCE_SERVICES
%20(1).pdf. [Accessed 2 january 2020].

[5] E. F. OGECHUKWU, "WEB BASED APPLICATION FOR INSURANCE SERVICES," pp. 7-10,
july 2013.

[6] Atlassian, "What is web system?," qoura, 8 october 2017.

[7] I. I. o. Michigan, "How Insurance Works," Insurance Institute of Michigan, 03 feberuary 2020.

[8] H. Zeleke, "Insurance in Ethiopia: Historical Development, Present Status and Future Challenges.," 1
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https://pdfs.semanticscholar.org/57df/960f69ca896a3892ee8f0718a1acd287e725.pdf?
_ga=2.260581581.1700214366.1580750212-807717688.1578937228. [Accessed 3 february 2020].

[9] "What is a Project Budget?," CFI.

[18 V. Njegomir, "The Role and Importance of Insurance of Business and Supply Chain Interruptions,"
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