INSURANCE MANAGEMENT

SYSTEM

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 DEPARTMENT OF BANKING TECHNOLOGY SCHOOL

OF MANAGEMENT PONDICHERRY UNIVERSITY

BONAFIDE CERTIFICATE

This is to certify that the project work entitled “CREDIT CARD

MANAGEMENT SYSTEM” is a Bonafide work done by ANUPRIYA P
[Register Number: 23412007], DIVYA RAKHECHA H [Register Number:
23412020], KAMALI V[Register Number: 23412031] in partial fulfilment of
the requirement for Development of fintech solutions using agile methodology
(MBAF 517) by Pondicherry University during the academic year 2023-25

Faculty incharge

Dr.A.Suganthy,

Assistant Professor

Department of Banking Technology

Submitted for the university End semester Lab Examination held on…………...

INTERNAL EXAMINER EXTERNAL EXAMINER

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 ACKNOWLEDGEMENT

We would first like to express our profound gratitude to our Vice-Chancellor,

Prof. K. Tharanikkarasu, for providing the facilities and resources that made this project
possible.

We would like to express our sincere gratitude to Dr. V. Mariappan, Head of the
Department, Banking Technology for his invaluable support and guidance throughout our
project. His encouragement has been a source of motivation for our team.

We are also deeply thankful to Dr. A. Suganthy, Assistant Professor, Banking Technology,
for her insightful feedback, patience, and continuous support, which have been instrumental in
shaping our project.

We are also immensely grateful to our friends, classmates, and families, whose constant
support and encouragement have been a source of strength and motivation for our team. Thank
you all for contributing to the success of our project.

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 CONTENT
Chapter 1-Introduction ........................................................................................................... 3
Chapter 2-Problem definition
2.1 Problem statement ................................................................................................. 4
2.2 Objectives ............................................................................................................. 5

2.3 Feasibility analysis .............................................................................................. 5

2.3.1 Economic feasibility analysis.......................................................................... 6
2.3.2 Technical feasibility analysis .......................................................................... 6
2.3.3 Organization feasibility analysis ..................................................................... 7
Chapter 3-Software Requirement Specifications
3.1 Introduction ........................................................................................................... 9
3.2 Overall description ................................................................................................ 9
3.3 Functional requirements........................................................................................ 9
3.4 Non-functional requirements .............................................................................. 11

Chapter 4-Object Oriented Analysis (OOA) and Object Oriented Design(OOD)

4.1 Identification of actors ........................................................................................ 12
4.2 Business case diagram ........................................................................................ 13
4.3 Use case diagram ................................................................................................ 14

4.4 Interaction diagram .......................................................................................... 15

4.4.1 Sequence diagram ......................................................................................... 15
4.4.2 Collaboration diagram .................................................................................. 16

4.5 Class diagram ................................................................................................... 17

4.5.1 Identification of class ................................................................................... 17
4.5.2 Class diagram ............................................................................................... 20

4.6 Object Oriented Design ................................................................................... 25

4.6.1 Detailed Class Diagram ............................................................................... 25
Chapter 5- Object oriented Implementation
5.1.1 Component .................................................................................................... 23
5.1.2 Deployment .................................................................................................. 28
Chapter 6- Future work and Conclusion

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 CHAPTER 1
INTRODUCTION

An Insurance Management System (IMS) is essential to efficiently manage insurance

policies, claims, customer data, and financial transactions. In today's fast-paced world, the
insurance industry plays a critical role in safeguarding individuals and businesses against
various risks. This project aims to design a robust and scalable system that automates and
streamlines the administrative processes of an insurance company, thereby enhancing
operational efficiency and customer service.

The Insurance Management System will be developed to address key areas such as policy
management, premium tracking, claims processing, customer information handling, and report
generation. The system will provide a centralized platform to manage the entire insurance
lifecycle, from policy creation to claims settlement, while ensuring data accuracy, security, and
compliance with industry standards.

This project will involve a detailed System Analysis and Design phase to understand the user
requirements, define system functionalities, and establish the technical architecture. By
leveraging modern design methodologies and tools, the system will aim to reduce manual
errors, minimize processing time, and improve customer satisfaction. The outcome will be a
highly reliable and user-friendly system that can cater to the evolving needs of the insurance
sector.

This project will follow standard System Development Life Cycle (SDLC) methodologies,
including requirement gathering, system design, implementation, testing, and maintenance.
The end product will contribute significantly to improving the overall effectiveness of
insurance management processes.

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 CHAPTER 2
PROBLEM DEFINITION

2.1 PROBLEM STATEMENT

The insurance industry involves a high volume of transactions, detailed documentation, and
complex processes for policy management and claims processing. Traditional manual methods
or outdated systems used by many insurance companies lead to inefficiencies, errors, and
increased costs. The following challenges outline the specific problems that the Insurance
Management System aims to address :

1. Inefficient Policy Management: Tracking and managing multiple policies manually

is time-consuming and prone to errors. Lack of real-time access to policy data creates
delays and service inefficiencies.
2. Inconsistent Customer Data Management: Without a centralized system, customer
data is often scattered, leading to redundancy and data inconsistencies. Manual data
entry increases the risk of errors, leading to potential miscommunication and
dissatisfaction among clients.
3. Complex Claims Processing: Processing claims manually or with inadequate tools can
lead to delayed approvals, errors, and customer frustration. There is a need for a
streamlined, automated process that ensures accuracy and reduces processing time.
4. Limited Financial Tracking and Reporting: Lack of automated premium calculation
and payment tracking leads to inconsistencies in financial records. Manual reporting is
time-consuming and does not provide real-time insights, making it difficult to make
data-driven decisions.
5. Difficulty in Regulatory Compliance: Insurance companies must comply with various
regulatory standards, which require accurate record-keeping and timely reporting. A
manual or fragmented system may lead to compliance issues and possible penalties.
6. Inadequate Communication and Customer Support: Inefficient communication
between insurance providers and clients results in poor customer service. Lack of a
system to track and respond to customer inquiries and updates can impact customer
retention.
7. Data Security Concerns: Insurance companies handle sensitive customer data, making
it essential to have secure data management practices. Traditional systems lack robust
security features, increasing the risk of data breaches.

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2.2 OBJECTIVES
The main objectives of the Insurance Management System are:

1. Operational Efficiency: Streamline and automate core insurance operations such as

policy issuance, claims processing, renewals, and payments to reduce manual
intervention and processing time. Centralize the management of customer data,
insurance products, and transactions to avoid duplication and fragmented data across
multiple systems.
2. Enhanced Customer Experience: Provide a self-service portal for customers to
manage their policies, make payments, submit claims, and check claim statuses in real
time. Improve communication and transparency between insurance companies and
customers by offering real-time updates and multi-channel support (e.g., chat, email,
SMS).
3. Compliance and Risk Management: Ensure that the system complies with insurance
regulations, including proper documentation, timely reporting, and accurate data
retention. Enable automated monitoring and reporting features to ensure ongoing
compliance with industry standards and local regulations.
4. Data Analytics and Reporting: Offer real-time reporting and analytics for business
insights, allowing management to track performance, identify trends, and predict
customer needs. Detect and mitigate fraudulent activities using advanced algorithms
and machine learning to analyze data patterns.
5. Integration with Modern Technologies: Incorporate AI and machine learning for
automated underwriting, risk assessment, and personalized insurance product
recommendations. Enable easy integration with existing systems and third-party tools,
including mobile apps, cloud storage, and payment gateways.
Through these objectives, the Insurance Management System aims to optimize insurance
processes, enhance customer interactions, and contribute to the overall growth and
competitiveness of the organization.

2.3 FEASIBILITY ANALYSIS

In today’s digital landscape, the management of insurance processes is crucial for both
policyholders and insurance providers. With the growing complexity of insurance products and
the increasing demands for seamless digital experiences, there is a rising need for efficient,
secure, and user-friendly systems that support the end-to-end management of insurance
policies. An Insurance Management System (IMS) is a critical tool in this context, offering
capabilities such as policy tracking, claim processing, risk assessment, fraud detection, and
customer relationship management.
The primary objective of this feasibility analysis is to evaluate the viability of developing an
IMS that caters to the needs of both end-users and insurance providers. This assessment will
focus on the key factors that determine the success of the project, including technical
capabilities, economic implications, legal and compliance requirements, operational

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considerations, and the anticipated timeline for development. By doing so, we aim to ensure
that the proposed IMS not only meets industry standards but also enhances user experience and
operational efficiency.

2.3.1 Economic feasibility analysis

The economic feasibility analysis for the Insurance Management System (IMS) evaluates the
costs and benefits associated with developing and operating the system. The IMS project aims
to offer users an efficient platform for managing insurance policies, processing claims,
assessing risks, detecting fraud, and providing enhanced customer service.
Development Costs for the IMS are estimated at ₹21,500,000, covering personnel expenses
for developers, a project manager, a UI/UX designer, and a compliance specialist, as well as
expenses for software licenses, data storage, and hardware requirements. Operational Costs
for the first year, including maintenance, customer support, compliance management, and
marketing, are projected at ₹15,300,000, bringing the total initial investment to ₹36,800,000.
On the revenue side, the system is expected to generate ₹26,100,000 in its first year through
subscription fees, premium features, and partnerships with insurance providers. Additionally,
the IMS could achieve cost savings of ₹6,200,000 through automation, improved fraud
detection, and operational efficiency. Despite these gains, the net profit for the first year would
show a loss of ₹4,500,000, indicating the need for further revenue sources or efficiency gains
to achieve break-even.
To address these challenges, the analysis recommends prioritizing strategic partnerships with
insurance providers to increase adoption, focusing on enhanced fraud detection and cost-
cutting features, and exploring additional revenue streams such as data analytics and premium
service options. While initial financial losses are expected, careful planning and execution
could enable the IMS project to achieve sustainable profitability in the long term.

2.3.2 Technical feasibility analysis

The technical feasibility analysis for the Insurance Management System (IMS) evaluates the
technological requirements essential for its effective implementation. The project’s objective
is to deliver a platform that enables efficient management of insurance policies, claim
processing, risk assessment, fraud detection, and customer relationship management. Key
functional requirements include secure user authentication, policy management, claim
processing workflows, risk assessment tools, fraud detection algorithms, and a customer
support system. Non-functional requirements focus on performance, scalability, security
(compliance with industry standards like HIPAA or SOC 2), and ease of use.
The proposed technology stack includes a frontend developed with frameworks like React or
Vue.js, a backend built on Node.js or Django, and a relational database like PostgreSQL or
MySQL for reliable data storage. Integration with third-party services, such as actuarial data
providers or fraud detection APIs, will be essential for enhanced risk assessment and fraud
prevention. Hardware needs include cloud-based infrastructure (e.g., AWS, Azure) to support
scalability, with load balancers and disaster recovery systems to ensure high availability and
data resilience.

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An Agile methodology will drive development, enabling iterative progress and incorporating
user feedback. The implementation phases will range from requirements gathering to testing,
deployment, and user training. The analysis identifies technical risks such as integration
complexities with external services, scalability concerns with increased policy and claim
volumes, and stringent security needs due to the sensitive nature of insurance data.
Additionally, compliance with data protection regulations (e.g., GDPR) and insurance
standards will be critical .The analysis finds that the IMS can be built effectively using existing
technologies and best practices. However, attention to integration, scalability, and regulatory
compliance will be essential for ensuring the system’s security, efficiency, and reliability.

2.3.3 Organization feasibility analysis

The organizational feasibility analysis for the Insurance Management System (IMS) assesses
whether the project aligns with the strategic objectives and operational capacities of the
organization. This evaluation is key to determining the organization’s readiness to undertake
the IMS project and to identifying any potential obstacles to its success. Understanding how
the IMS aligns within the broader organizational context is crucial to ensuring its viability and
effectiveness.
A major component of this analysis is evaluating the alignment of the IMS with the
organization’s strategic goals. This includes assessing how the system can enhance customer
service, improve operational efficiency, and increase competitive advantage in the insurance
sector. The IMS is expected to add value by streamlining processes, reducing operational costs,
enhancing customer satisfaction, and providing insights through data analytics for better
decision-making.

Organizational structure and culture are also pivotal to feasibility. Executive support and
commitment are essential, as strong backing from leadership ensures that necessary
resources—both financial and human—are allocated effectively. Assessing the organization’s
culture helps determine its openness to innovation and technological advancement. A culture
that embraces change and digital transformation will facilitate the smooth implementation and
adoption of the IMS.
Resource availability is another critical factor in this feasibility assessment. This includes the
evaluation of human resources, such as skilled personnel for software development, project
management, and IT support, as well as financial resources to cover initial development and
ongoing maintenance costs. Furthermore, it is important to assess the existing technological
infrastructure to ensure it can support the new IMS, including the necessary hardware,
software, and network capacities.
The operational impact of the IMS must also be carefully considered, especially in terms of
how it will affect current workflows and processes. Planning for potential disruptions during
the implementation phase and reengineering processes to optimize system efficiency are
essential. Training and support for employees who will use the IMS are also critical for
ensuring a smooth transition and operational success.

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Risk assessment is a vital aspect of organizational feasibility, focusing on identifying and
mitigating potential risks, such as resistance to change or lack of stakeholder buy-in.
Developing strategies to address these risks—such as implementing change management
initiatives and comprehensive communication plans—will support a successful adoption
process.
Stakeholder analysis is crucial for the project’s success, as understanding the needs and
expectations of stakeholders—including employees, management, policyholders, and external
partners—will guide development and ensure effective implementation. A stakeholder
engagement strategy should be developed to involve stakeholders throughout the project,
gathering input and feedback that can be incorporated at each phase.
The organizational feasibility analysis provides insights into the strengths and weaknesses of
the organization concerning the IMS project. If the analysis indicates a favorable alignment
with strategic goals, resource availability, and stakeholder support, it may be recommended to
proceed with the project. On the other hand, if significant barriers are identified, the
organization may need to address these challenges before moving forward. Ongoing
monitoring and reassessment throughout the project will ensure that it remains aligned with
organizational objectives, paving the way for well-informed decision-making and project
success.

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 CHAPTER 3
SOFTWARE REQUIREMENT SPECIFICATIONS
3.1 INTRODUCTION
This Software Requirements Specification (SRS) document outlines the requirements for the
development of an Insurance Management System (IMS). The IMS is designed to streamline
and automate key insurance processes, including policy management, claim processing, risk
assessment, fraud detection, and customer service. The purpose of this system is to enable
insurance companies to improve operational efficiency, enhance customer satisfaction, and
maintain regulatory compliance, while reducing costs and minimizing the risk of fraud.

3.2 OVERALL DESCRIPTION

The Insurance Management System (IMS) is a user-centric platform designed to simplify
and automate the management of insurance policies, claims, and related processes for both
insurance providers and policyholders. The system aims to provide a secure, efficient, and
intuitive environment where users can easily manage their policies, track claims, assess risks,
and receive valuable insights into their insurance coverage.
The application will feature a personalized dashboard that consolidates key information such
as active policies, claim status, upcoming renewal dates, and payment schedules. Policyholders
will be able to access detailed policy documents, submit and track claims, and communicate
with customer support, all from a single, easy-to-navigate interface. Insurance providers will
have tools to manage policy issuance, risk assessments, claims processing, and generate
detailed reports for internal analysis.

The IMS will offer powerful features such as automated claim processing, fraud detection
algorithms, and risk assessments, helping both policyholders and insurance providers make
informed decisions. Users will also receive notifications for important events, such as policy
renewals, claims updates, or any actions required on their policies, ensuring they stay informed
and proactive in managing their insurance needs.
Security will be a top priority in the system’s design, with adherence to industry standards and
regulations (such as GDPR or HIPAA) to protect sensitive user data. The system will be
developed with a user-friendly design approach to ensure accessibility across multiple
platforms, including web and mobile, so that both individuals and business users can manage
their insurance needs easily, regardless of their technical expertise.
3.3 FUNCTIONAL REQUIREMENTS

1. User Registration and Authentication

• The system shall allow new users (policyholders, agents, administrators) to register by
providing their personal or business information, including email, phone number, and
address.

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 • The system shall provide an option for two-factor authentication (2FA) for added
security, especially for administrators and agents.

2. Policy Management

• The system shall allow insurance agents or administrators to create new insurance
policies for policyholders by capturing essential details such as policy type, coverage,
premium, beneficiaries, and policy duration.
• The system shall automatically notify users about upcoming policy renewals and allow
them to renew their policies via an easy-to-use interface.
• Users shall be able to view their premium details, make premium payments online, and
track past payments.

3. Claim Management

• The system shall allow policyholders to submit claims by providing required

information such as claim type, date of incident, and any supporting documents (e.g.,
medical reports, accident reports).
• Policyholders shall be able to track the status of their claims (e.g., submitted, under
review, approved, rejected).

4. Risk Assessment

• The system shall allow insurance agents to create and update risk profiles for
policyholders based on factors such as age, health status, occupation, and lifestyle.
• The system shall provide an automated risk scoring system that evaluates the risk level
of policyholders or claims based on predefined criteria.

5. Fraud Detection

• The system shall automatically flag suspicious claims and generate alerts for review by
claims adjusters or fraud specialists.
• The system shall integrate with third-party fraud detection services or databases to
enhance fraud detection capabilities.

6. Customer Support and Communication

• The system shall provide a ticketing system for policyholders to submit inquiries or
requests, which can be tracked by both the customer and support agents.
• The system shall send automatic notifications (email, SMS, or in-app) to users for
events such as policy renewals, claim status updates, payment due dates, and other
important reminders.
• The system shall provide live chat support for real-time communication between
policyholders and customer service agents.

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7. Reporting and Analytics

• Administrators and insurance agents shall have access to customizable dashboards that
display key performance indicators (KPIs), such as number of policies issued, claims
processed, risk assessments, and customer satisfaction.
• The system shall provide analytics on claim patterns, approval rates, average claim
amounts, and other insights to improve claims processing efficiency.
• The system shall generate reports on flagged claims, detailing the reasons for suspicion
and actions taken.

8. Compliance and Security

• The system shall comply with industry standards and regulations (e.g., GDPR, HIPAA)
to ensure the protection of personal and financial data.
• All sensitive data (e.g., policyholder details, payment information) shall be encrypted
and stored securely to prevent unauthorized access.
• The system shall implement role-based access control (RBAC) to ensure that users have
access only to the features and data relevant to their roles.

9. Integration with Third-Party Services

• The system shall integrate with third-party payment gateways (e.g., Stripe, PayPal) to
allow policyholders to make premium payments and track payment histories.
• The system shall be capable of generating reports for compliance with regulatory
authorities and submitting data to external regulatory systems, if required.

3.4 NON-FUNCTIONAL REQUIREMENTS

1. Performance
o The system should have a response time of less than 2 seconds for user actions
such as login, policy creation, and claim submissions under normal load
conditions.

o Policy transactions (e.g., creation, payment processing, updates) should be

completed within 3-5 seconds for a seamless user experience.

2. Usability
o The system should provide an intuitive, easy-to-use interface that is consistent
across all platforms (web, mobile). The design should follow best practices in
user experience (UX) design, including clear navigation, minimal clicks, and
visual feedback for user actions.

o The system should comply with accessibility standards, such as WCAG 2.0,
ensuring it is usable by people with disabilities, including support for screen
readers and keyboard navigation.

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3. Reliability

o The system should have an uptime of at least 99.9%, ensuring that it is available
for use during most of the time, excluding scheduled maintenance.

4. Security
o All sensitive data, including personal information, payment details, and medical
records (if applicable), must be encrypted both in transit (via HTTPS) and at
rest.

5. Scalability
o The system should be designed to scale horizontally to accommodate increased
user load, such as adding additional servers or database clusters, to handle more
users during peak times (e.g., policy renewals, claim season).

6. Interoperability
o The system should allow users to export their data (e.g., policy details, claims
history) in commonly used formats (e.g., PDF, CSV, Excel).

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 CHAPTER 4
OBJECT ORIENTED ANALYSIS

4.1 IDENTIFICATION OF ACTORS

Figure 4.1: Identification of actors Diagram

For an Insurance Management System, the main actors could be:

1. Customer: Purchases insurance policies, makes claims, and manages their account
details.

2. Insurance Company: Issues insurance policies, manages claims, and determines

premium amounts based on customer risk assessment
3. Agent/Broker: Acts as an intermediary between the customer and the insurance
company.
4. Underwriter: Evaluates risk and determines the terms of the insurance policies.
5. Claims Adjuster: Investigates and assesses the validity of insurance claims.

6. Reinsurance Company: Provides financial protection to the insurance company in

case of large claims or losses by sharing some of the risk..

7. Regulatory Authorities: Govern and monitor the insurance industry, ensuring

compliance with regulations and protecting the interests of customers.
8. Payment Processor: Handles the financial transactions for premium payments, policy
renewals, and claim disbursements.
These actors are integral to the functioning of an insurance management system, with
interactions that define the policy lifecycle from issuance to claims and regulatory compliance.

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4.2 ACTIVITY DIAGRAM
Figure 4.2: Activity Diagram

This activity diagram illustrates the user’s flow for viewing and purchasing a policy in an
insurance management system. Here’s a brief interpretation:
1. User Accesses System: The process starts with the user accessing the system to view policy
options.
2. View Policy: The user initiates an action to view policy options.
3. Show Policy List: The insurance management system displays a list of available policies.
4. Select Policy: The user selects a policy they are interested in.
5. Decision to Buy Policy: A decision point determines if the user wants to buy the policy.
- Yes: If the user chooses to buy, it leads to the my policy state, indicating the policy is added
to the user's portfolio.
- No: If the user opts not to buy, they are directed to go back to the policy list.
6. Maintain Policy Records: Regardless of the choice, the system proceeds to **maintain
policy records* for tracking and administrative purposes, leading to the end of this activity
flow.
This diagram represents a straightforward process for users to explore, select, and purchase
policies while ensuring records are maintained.

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4.3USE CASE DIAGRAM
Figure 4.3: Use case Diagram

This is a use case diagram for an "Insurance Management System." It outlines the interactions
between different actors (users) and use cases (features or actions) within the system. Let's
break down the diagram, focusing on the main actors, their relationships with the use cases,
and the functionalities of each component.
It illustrates the interactions between customers, admins, agents, and the system. Customers
can register, log in, view policies, pay premiums, add nominees, and access help. Admins
manage registration, login, and policies. Agents accept policies, fill forms, upload documents,
and manage status. The system integrates with Paypal for payments.

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4.4 INTERACTION DIAGRAM
An Interaction Diagram is a visual representation that illustrates how objects or components
within a system interact with each other to achieve a specific functionality or process. It is a
fundamental part of Unified Modelling Language (UML) and is used primarily in software
engineering to detail the flow of messages and actions between different parts of a system.
There are two main types of interaction diagrams:
4.4.1 Sequence Diagrams: Focus on the time sequence of interactions between objects or
components.

4.4.2 Collaboration Diagrams (also known as Communication Diagrams): Emphasize

the structural organization of objects and their interactions.

4.4.1. SEQUENCE DIAGRAM

Figure 4.4.1 Sequence diagram

The following sequence of interactions highlights each step required to complete a credit card
transaction securely:
1. Add/View Category (Admin → Category):

➢ The admin can add a new category or view existing categories.

2. View Policy (User → Policy):

➢ The user views available policies under a category or subcategory.

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3. Buy Policy (User → Policy):
➢ After viewing, the user can proceed to purchase a policy.

4. Add Policy (Admin → Policy):

➢ The admin can add new policies under a specific category or subcategory.

5. Add Subcategory (Admin → Subcategory):

➢ The admin can add a new subcategory to a particular category.

4.4.2. COLLABORATION DIAGRAM

The Communication (or) Collaboration diagram depicts the interactions between three key
actors in an insurance management system: customers, admins, and agents. Customers can
register, log in, make payments, and view payment reports. Admins can add insurance plans
and view system reports. Agents can log in and view commissions. Unlike sequence diagrams,
which focus on the chronological order of messages, collaboration diagrams emphasize the
relationships and communication paths among various components involved in a scenario.

Figure 4.4.2 Collaboration Diagram

The communication diagram provided illustrates interactions within an Insurance Management

System involving four entities: Customer, Admin, Insurance Management System, and Agent.
Here’s a breakdown of each interaction:
1. Customer to Insurance Management System:
➢ The customer registers, logs in, and makes a payment to the Insurance Management
System. This step establishes the customer's account and allows them to process
transactions.

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2. Admin to Insurance Management System:
➢ The admin can add insurance plans or schemes within the system. This functionality
enables the admin to manage the policies available to customers.
3. Admin to Insurance Management System:
➢ The admin views reports within the system, allowing them to access data and insights
on the operations, payments, or policy enrolments .

4. Customer to Insurance Management System:

➢ The customer views their payment report through the system, helping them review
transaction details related to their policies.

5. Agent to Insurance Management System:

➢ The agent logs in to the system, allowing them to access and manage their activities
within the Insurance Management System.

6. Insurance Management System to Agent:

➢ The agent receives a commission based on their role in policy sales or customer
management, as processed by the system.

4.5. CLASS DIAGRAM

A Class Diagram is one of the most essential types of diagrams in Unified Modeling Language
(UML), widely used in software engineering to model the static structure of a system. It
provides a blueprint of the system's classes, their attributes, methods, and the relationships
among them. Class diagrams help visualize the overall architecture of an application and
facilitate understanding, planning, and communication among developers and stakeholders.

4.5.1. IDENTIFICATION OF CLASS

1. Policyholder Class

• Identification: Represents an individual or entity holding an insurance policy.

• Purpose: To encapsulate details and actions related to an insurance policyholder.
• Attributes:
o Policyholder ID: Unique identifier for the policyholder.
o Name: Full name of the policyholder.
o Date of birth: Date of birth for identity verification.
o Address: Residential address.
o Email: Contact email for communication.
o Phone number: Policyholder’s contact number.
o Policy status: Indicates if the policy is active, expired, or suspended.
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 o Premium amount: Monthly or annual payment amount for the policy.
oCoverage amount: Maximum amount covered by the insurance.
• Key Methods:
o Check coverage ()
o Make premium payment ()

2. Agent Class

• Identification: Represents an insurance agent managing policies and assisting clients.

• Purpose: To manage agent-related data, facilitate client support, and handle policy
sales.
• Attributes:
o Agent ID: Unique identifier for the agent.
o Agent name: Full name of the agent.
o Contact number: Contact number for the agent.
o Email: Agent's email for client communications.
o Branch location: Location or branch assigned to the agent.
o Commission rate: Commission rate for policy sales.
• Key Methods:
o Issue policy ()
o Assist claim ()

3. Claim Processing System Class

• Identification: Manages claims submitted by policyholders for processing.

• Purpose: To oversee the claim submission, evaluation, and settlement processes.
• Attributes:
o System ID: Unique identifier for the claim processing system.
o System name: Name of the claim processing system.
o Maximum claim amount: Maximum claim limit per policyholder.
o Supported claim types: Types of claims the system handles (e.g., medical,
vehicle).
o Processing fee: Fee associated with claim processing.
• Key Methods:
o Submit claim ()
o Process claim ()
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4. Insurance Company Class

• Identification: Represents the insurance company responsible for managing policies,

claims, and risk.
• Purpose: To authorize policies, assess claims, and provide support.
• Attributes:
o Company ID: Unique identifier for the insurance company.
o Company name: Name of the insurance provider.
o Headquarters address: Main office or headquarters location.
o Customer support email: Contact email for support.
o Risk assessment method: Methods used to evaluate risk (e.g., underwriting).
• Key Methods:
o Approve policy ()
o Settle claim ()

5. IMS (Insurance Management System) Class

• Identification: Central system managing insurance policies, claims, and customer data.
• Purpose: To oversee policies, monitor claims, and manage risk assessment.
• Attributes:
o System ID: Unique identifier for the IMS.
o System version: Version of the insurance management system.
o Claim limit per day: Maximum claims processed daily.
o Supported regions: Geographic regions where the system operates.
o Fraud detection enabled: Boolean indicating if fraud detection is active.
• Key Methods:
o Track policies ()
o Validate claim ()
o Generate report ()

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4.5.2 CLASS DIAGRAM
Figure 4.5.2 Class Diagram

The Class Diagram for the Insurance Management System provides a clear representation
of the structure of the system, defining the main classes, their attributes, methods, and
relationships. Here is a breakdown and interpretation of each component:

1. Core Classes and Their Roles

• Customer Class:
o Represents the end-users of the system who hold credit card accounts.
o Attributes such as name, credit card number, and balance capture customer
details.

o Methods like check balance () and make payment () indicate customer actions
within the system.
• Merchant Class:
o Represents the businesses or entities that accept payments from customers.
o Attributes like merchant name and merchant ID define merchant characteristics.
o The method initiate transaction () signifies the starting point of the payment
process initiated by the merchant.
• Payment Gateway Class:

o Acts as an intermediary that processes payment transactions between the

merchant and the bank.

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 o Attributes such as gateway ID and transaction ID are crucial for managing and
tracking transactions.

o Methods like process payment () and authorize payment () show how payments
are verified and processed.
• Bank Class:
o Represents the financial institution that authorizes and processes the payment.
o Attributes like bank name and verification method detail how the bank operates
in this context.

o The method verify account () is vital for ensuring the customer's account has
sufficient funds or credit available.
• CCMS (Credit Card Management System) Class:
o Oversees the management of credit limits and transaction tracking.
o Attributes like system ID and fraud detection enabled show the system's
capabilities for security and administration.

o Methods such as validate credit limit () and generate report () provide critical
functionality for managing customer accounts and reporting.
2. Relationships and Cardinalities
• Customer and Merchant:

o The 1..* cardinality indicates that one customer can have multiple interactions
with different merchants, reflecting real-world scenarios where customers make
multiple purchases.

• Merchant and Payment Gateway:

o The 1..1 relationship shows that each transaction by a merchant utilizes one
payment gateway, ensuring that each transaction is processed through a single
channel.
• Payment Gateway and Bank:

o The 1..1 relationship signifies that a payment request handled by the gateway is
sent to one bank for authorization.
• Bank and CCMS:

o The 1..* relationship reflects that a bank can perform multiple account
verifications through the CCMS, supporting a scalable system where multiple
transactions or credit checks occur.

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3. Visibility of Attributes and Methods
• Attributes such as credit card number in Customer and transaction limit in Merchant
are set as private (-) for security and encapsulation.

• Public methods (+) like make payment () and process transaction () indicate functions
that are accessible outside the class, enabling interactions between objects.

• Protected (#) attributes, like account status in Customer, imply that these attributes are
accessible within the class and its subclasses.

4. Overall System Functionality

The diagram illustrates the workflow of a credit card transaction:

• A Customer initiates a payment through a Merchant.

• The Merchant interacts with the Payment Gateway to process the payment.
• The Payment Gateway communicates with the Bank to verify the transaction.
• The Bank interacts with the CCMS for credit checks and account status verification.

• The system ensures secure processing, with attributes and methods designed to manage
payment details, customer and merchant information, and bank operations.

4.6 OBJECT ORIENTED DIAGRAM(OOD):

Object-Oriented Design (OOD) is an approach to software design that models a system as a
group of interacting objects, each representing a real-world entity or concept. OOD helps in
building complex systems by using four fundamental principles of Object-Oriented
Programming (OOP).

4.6.2 DETAILED CLASS DIAGRAM

Figure 4.5.2 Detailed Class Diagram

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 CHAPTER 5

OBJECT ORIENTED DESIGN AND

IMPLEMENTATION

5.1 IMPLEMENTATION
An Implementation Diagram is a type of diagram in Unified Modelling Language (UML) that
focuses on the physical deployment and implementation aspects of a system. It provides a
visual representation of how software components and other elements are distributed across
hardware nodes or environments. This type of diagram is essential for understanding the
system's architecture and how different parts are deployed in a real-world setting.
There are two main types of implementation diagrams:

1. Component Diagram: Represents the software components (e.g., code modules,

libraries, executables) and their relationships. It shows how the system is logically
divided into cohesive parts and how these components interact with each other.

2. Deployment Diagram: Illustrates the physical architecture of the system, mapping out
how software is deployed onto hardware nodes (e.g., servers, devices, network
components). It describes the arrangement of runtime artifacts, such as applications and
services, and the hardware infrastructure they run on.

5.1.1 COMPONENT
Figure 5.1.1 Component Diagram

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The Component Diagram of the Insurance Management System provides a visual breakdown
of the system's architecture, detailing how different components interact and depend on one
another. Here is an interpretation of the drawn component diagram:

1. User Interface (UI): The entry point for users to interact with the system. Users can file
claims through the UI.

2. Claims Management: Manages claim-related operations, such as processing and verifying

claims. It interacts with the Policy Management component to verify policies and the Payment
Processing component to handle payments. It also interacts with the database to store and
retrieve claim data.
3. Policy Management: Manages policies, allowing the storage and retrieval of policy data. It
verifies policies for claims by interacting with the Claims Management component and
communicates with the database to manage policy information.
4. Payment Processing : Handles the processing of payments for claims. It interacts with the
Claims Management component for payment-related information and stores/retrieves payment
data from the database.

5. Database (DB): Central storage that holds policy, claim, and payment data. It is accessed
by Policy Management, Claims Management, and Payment Processing components for data
storage and retrieval.

This setup ensures that all policy, claim, and payment operations are managed and verified
systematically, with data stored in a central database.
Interpretation of Labelled Dependencies:
• Customer Management Component "accesses" the User Interface Component to
facilitate user interactions, ensuring that data flows seamlessly from the frontend to the
backend.
• Insurance Policy Core Component "monitors" the Claims Processing Component
for real-time tracking and assessment of insurance claims.

• Payment Processing Component "logs" premium payment details to the Insurance

Policy Core Component, ensuring all transactions related to premiums are recorded.

• Bank Interface Component "authorizes" payment requests from the Payment

Processing Component, signifying a necessary external check for the validity of
premium payments.

Overall System Workflow:

• The User Interface Component acts as the entry point for policyholders, brokers, and
other users, passing user data and actions to the Customer Management Component.
• The Customer Management Component handles policy-related requests and initiates
interactions with the Claims Processing Component for claims submission and
review.

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 • The Claims Processing Component communicates with the Payment Processing
Component to ensure any required premium payments or claim settlements are
processed, involving verification with the Bank Interface Component for payment
validity.
• The Insurance Policy Core Component serves as the central control, ensuring data
validation, claim logging, and reporting to enable effective system management and
oversight.

5.1.2 DEPLOYMENT
5.1.2 Deployment Diagram

The Deployment Diagram represents the physical architecture and deployment of the Credit
Card Management System, showing how various components and nodes (hardware and
software) are distributed across different systems and servers. It illustrates the communication
between the system's components and the physical devices they reside on.

Nodes and Components in the Diagram:

1. Client Device (Node)

• Type: <<device>>
• Components: User Interface

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 • Role: This node represents the end-user devices, such as computers, smartphones, or
tablets. The User Interface (UI) runs here, allowing customers, agents, and
administrators to interact with the Insurance Management System via a web or mobile
application.
• Communication: The Client Device communicates with the Web Server over HTTPS
for secure data transfer, ensuring encrypted interactions between the user and the
system.

2. Web Server (Node)

• Type: <<server>>
• Components: Web Interface Module, Request Handler
• Role: This server hosts the frontend application, managing user requests and
forwarding them to the Application Server. It acts as an intermediary between the Client
Device and the Application Server.
• Communication: The Web Server receives data from the Client Device and forwards
it to the Application Server over HTTPS or REST API. It also processes responses and
returns them to the Client Device.

3. Application Server (Node)

• Type: <<server>>
• Components: Customer Management Component, Claims Processing Component,
Insurance Policy Core
• Role: The Application Server is the core of the IMS, handling business logic. It
manages customer data, policy information, and claims processing, and performs key
functionalities such as policy validation and claim review.
• Communication: The Application Server communicates with the Web Server using a
REST API, with the Database Server using SQL connections, and with the Bank API
Server for payment verification.

4. Database Server (Node)

• Type: <<database server>>

• Components: Policy Database, Claims Database, Customer Records

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 • Role: This server stores persistent data such as policyholder information, policy details,
claims records, and payment history. It ensures secure data storage and supports data
retrieval and updates as needed.
• Communication: The Application Server sends SQL queries to the Database Server to
retrieve, update, or delete data as required by various transactions and requests within
the system.

5. Bank API Server (Node)

• Type: <<external server>>

• Components: Payment Authorization Interface
• Role: This external server interacts with the Application Server to handle premium
payments. The Bank API Server verifies payment details, processes transactions, and
returns an authorization response.
• Communication: The Application Server communicates with the Bank API Server via
secure API calls (HTTPS or REST API) to confirm the validity and processing of
premium payments.

Communication Paths:

1. Client Device to Web Server

• Path: HTTPS
• Explanation: Secure communication between the client’s device and the web server
ensures that sensitive user data (e.g., login credentials, policy details) is encrypted
during transmission.

2. Web Server to Application Server

• Path: REST API

• Explanation: The Web Server sends requests to the Application Server via a RESTful
API, enabling the Application Server to handle core business logic, such as managing
claims, processing policies, and verifying customer details.

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3. Application Server to Database Server

• Path: SQL Connection

• Explanation: The Application Server queries the Database Server to fetch policy
information, claims records, and customer data using SQL queries.

4. Application Server to Bank API Server

• Path: HTTPS or REST API

• Explanation: The Application Server communicates securely with the Bank API
Server to authorize premium payments and process financial transactions using HTTPS
or REST API calls.

Key Points:

• Security: Communication paths like HTTPS are used to secure communication

between nodes, essential in an insurance system where sensitive data, such as personal
information and payment details, is handled.
• Separation of Concerns: Each node serves a distinct role in the system:
o Client Device handles user interaction.
o Web Server manages user requests and responses.
o Application Server processes business logic (e.g., policy and claims
management).
o Database Server securely stores and manages data.
o Bank API Server verifies and authorizes premium payments.

This architecture ensures secure, efficient, and reliable operation of the Insurance Management
System, streamlining customer interactions, policy management, and claim handling.

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 CHAPTER 6
CONCLUSION AND FUTURE WORK

FUTURE WORK
The Credit Card Management System (CCMS) project has been meticulously designed and
represented through a series of UML diagrams, which provide a detailed and holistic view of
the system from multiple perspectives. Each diagram serves a specific purpose, collectively
ensuring that all aspects of the system, from functional requirements to technical architecture,
are clearly understood.
The Use Case Diagram captures the system’s functional requirements by illustrating the
interactions between key actors such as Customer, Admin, and the Bank API Server. It
highlights key use cases like Apply for Card, Make Payment, and View Transaction History,
helping to define the scope of the system and its capabilities in terms of user actions and system
responses.

Complementing the functional view, the Business Case Diagram aligns the CCMS with the
business objectives it aims to achieve, such as Processing Transactions, Customer Data
Management, and Transaction Security. This diagram ensures that the system is designed with
a clear understanding of the value it provides to the business, keeping the focus on goals such
as financial efficiency, customer satisfaction, and security compliance.
The Class Diagram goes deeper into the system’s static structure, outlining key classes such as
Customer, Transaction, Payment, and Credit card, along with their attributes and methods. It
clearly defines the relationships and dependencies between the objects that form the core of the
system, and serves as the foundation for database design and the underlying business logic of
the system.
To capture the dynamic interactions, the Collaboration Diagram and Sequence Diagram
provide insights into the flow of messages between objects. The Collaboration Diagram shows
how objects collaborate during key processes, such as payment processing, while the Sequence
Diagram illustrates the step-by-step sequence of actions in a linear, time-ordered fashion. These
diagrams are essential for understanding the system’s behavior during real-world operations
and for identifying potential issues in interaction patterns or performance bottlenecks.
From a deployment perspective, the Deployment Diagram offers a physical representation of
how the system’s components are distributed across different hardware nodes like the Client
Device, Web Server, Application Server, and Database Server. It clearly shows how the
system’s software components are deployed in a real-world environment, ensuring that the
infrastructure supports the system’s requirements for scalability, performance, and security.

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 CONCLUSION
Finally, the Component Diagram maps out the software architecture, detailing how thesystem’s
modules and components—such as the Web Interface, Payment Processing Module, and
Customer Database—are organized and how they interact. This diagram is vital for
understanding the modularity and cohesion of the system, helping to ensure that each
component is designed with clear responsibilities and interfaces.
In conclusion, the comprehensive set of UML diagrams—ranging from Use Case to
Component diagrams—offers a multi-dimensional view of the Credit Card Management
System. Together, these diagrams provide a complete representation of the system’s functional
capabilities, business goals, data structure, interaction patterns, and physical deployment. This
thorough documentation ensures that developers, stakeholders, and system architects have a
clear understanding of how the system operates, how the components interact, and how the
system will perform in a real-world environment, thereby facilitating successful design,
development, and deployment of the CCMS.

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