TOPIC: A COMPUTERIZED INSURANCE APPLICATION AND

REGISTRATION SYSTEM

Abstract

The aim of this research is to create a web based application for insurance

services in order to bring insurance online and eliminate the tedium of

performing monotonous transactions. The software is created to be

deployed on the web and is aimed at providing application processing

services for an insurance company. The system design consists of various

user interfaces and the chapter also explains the system design using UML

diagrams. The features of the implementation languages used in this

research- PHP and MYSQL will be discussed extensively. The systems

testing strategies, the target computer requirements as well as the

software maintenance issues that would arise in the system would be

discussed also.

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Introduction

Background of the Study

Insurance is a promise of compensation for specific potential future losses

such as damage, illness or death in exchange for a periodic payment. It is

designed as a risk management mechanism to protect the financial well

being of an individual, company or other entities in the case of unexpected

loss.

Some forms of insurance are required by law while others are optional.

Agreeing to the terms of an insurance policy creates a contract between

the insured and the insurer in exchange for payments from the insured

called PREMIUM. The insurer agrees to pay the policy holder a sum of

money upon the occurrence of a specific event. In most cases, the policy

holder pays part of the loss called the DEDUCTIBLE and the insurer pays

the rest.

There are different types of insurance such as life insurance, health

insurance, auto insurance, property insurance, travel insurance, etc. This

project centers on auto or vehicle insurance.

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Vehicle insurance is an insurance policy purchased for cars, trucks and

other road vehicles. The primary use is to provide financial protection

against physical damage and/or bodily injury resulting from traffic collisions

and against liability that could also arise.

Auto insurance is the most widely purchased type of insurance coverage. It

is applicable to all types of automobiles and their drivers. It covers physical

damage caused to your vehicle and other vehicles you might come in

contact with. It offers liability protection. This means that if you are

involved in an accident and another person is injured, your vehicle

insurance policy will cover a portion of the person’s medical expenses.

Statement of Problem

Prior to this period, insurance services involved the physical participation of

both the insurer and the insured which is the traditional way of carrying

out insurance services. Since work carried out in an insurance company is

done manually, clients’ documents may be difficult to store and maintain

due to human errors. There is also high risk of fraudulent activities due to

freedom of human discretion.

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But this research work provides basic insurance services online, thereby

reducing the tedium of the traditional method of performing insurance

services. It also aids proper storage and maintenance of clients’

documents. Furthermore, it aids structured document representation and

eliminates the tedium of performing monotonous transactions.

Aims/Objectives of Study

The aim of this research is to create a web based application for insurance

services in order to bring insurance online and eliminate the tedium of

performing monotonous transactions. To achieve this aim, a web based

application provides the following benefits:

1. Fully automated insurance application processing.

2. Online information and application form for registration.

3. Decreased processing time and form errors.

4. Displays detailed information about the different types o insurance

policies provided.

5. Premium rates offered by the insurance policies are displayed to the

user.

6. Minimize multiple fraudulent claims.

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7. Provides authentic, qualitative and comprehensive data on insurance

for national policy formulation.

8. Provides easy verification of all policies issued.

9. Facilitates recovery of stolen vehicles.

10. Enhances transparency and accountability among stakeholders,

thereby restoring confidence in the insuring public.

Research Methodology

During the course of this research, interviews were conducted with

insurance brokers, insurance underwriters and also with those in the

department of indemnity and claims. Interview was also conducted with an

ICT practitioner (programmer). Information was also gotten online and

from major insurance literature.

Scope and Limitation of Study

The project is to create a web based application for insurance services in

order to bring insurance online and eliminate the tedium of performing

monotonous transactions. The scope covers the activities involved in acts

insurance which are; the insurance policies provided, online registration,

premium rates and payment online, laying of claims, ability to views

account details of a customer and the history ofall his payments.

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Limitation of this research work is that the system cannot cover or replace

the importance ofresources such as loss adjusters who process claims or

underwriters who define premium rates.

Definition of Terms

Deductable: Is a fixed contribution that must be paid each time a car in

repaired using an automotive insurance police. It is also referred to as

Excess: is a minimum excess payment the insurer will accept on the

insurance policy. It varies according to the personal details, driving record
and insurance company.

Voluntary Excess: To reduce the insurance premium, the insured may

offer to pay a higher excess than the compulsory excess demanded by the
insurance company. Hence, the voluntary excess is the extra amount over
and above the compulsory excess that has been agreed to be paid in the
event of a claim on the policy.

 Is the money to be paid for an insurance policy. It is the amount of

money charged by an insurance company for coverage.
 Is a person or an organization covered by insurance.

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  Is a person or company that underwriters an insurance risk. He is
also the party in an insurance contract undertaking to pay
compensation.
 Is pitting back the insured in the condition he was before the loss
occurred.

Underwriter: Is a person or firm that assumes financial risk on behalf of

another. An underwriter is defined as a person who accesses the risks to
be covered by an insurance policy or a person who underwrites a security
issue.