CASE STUDY

NATIONAL INSURANCE CO.

National Insurance Co. was established in 1979. It provides a no. of Property
Insurance Policies. With the rapid growth of the business it has become very
difficult for them to do the paper work. They have decided to automate all their
business processes.

Presently they have four Insurance Policies:

Policy ID Amount Covered (In Rs.) Premium (in Rs.)

101 1,00,000/- 20,000/
102 2,00,000/- 38,000/-
103 3,00,000/- 56,000/-
104 5,00,000/- 92,500/-

Premium is the amount the customer has to deposit with the Company while
purchasing the insurance. The premium has to be deposited in advance. There
is no option for installments. And the ‘amount covered’ is the amount, a policy
holder or his/her nominee is eligible to claim in case of any loss.

Each policy has three schemes, namely one year scheme, two year scheme and
three year scheme. The policy holder gets a simple interest per year on the
amount of their premium. A bonus is also calculated on the amount of premium
at the maturity of the insurance. At the maturity, total interest and bonus are
accumulated with the premium and returned to the policy holder. This is also
called maturity amount.

Bonus
Policy ID Interest (%) One Year Two Year Three Year
Scheme (%) Scheme (%) Scheme (%)
101 9 6 7 8
102 9.5 6.5 7.5 8.5
103 10 7.5 8.5 9.5
104 11 9.5 11 13

National Insurance co. has two departments: Proposals and Claims (P & C), and
Accounts. Every day clients wishing to take insurance policies approach the
P&C department. After discussing with them regarding policies and schemes
available the client would decide on a policy and a scheme. Then the concerned
clerk records the client’s details like name, age, sex, address, nominee details,
and policy and the scheme chosen. These details are then forwarded to
accounts department who will collect the premium amount. The client is then

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given a receipt for the amount and a policy is prepared and issued. If a client
wishes make a claim before the maturity period he sends it to the P&C
department who will investigate the claim and either accept it or reject it. If the
claim is accepted it is sent to the Accounts department who will then settle it. If a
policy matures then the premium along with the interest and bonus are paid to
the client.

Every month four reports are generated, namely, Product Report, New Insurance
Report, Monthly Maturity Report, and Monthly Claim Report. Product Report
gives the details about the no. of clients on each policy and scheme. New Policy
Report gives details about the new policies issued during the month. Monthly
Maturity Report gives the details of policies that have matured during the month.
And the Monthly Claim Report is details of the claims during the month.

Develop a system which can automate all the above processes. Consider any
two non-functional requirements for the implementation.