CHAPTER ONE

INTRODUCTION

The purpose of insurance is to provide end with greater financial security. We run risk everyday either by accident or loss of valuable property. One of the biggest risk people take is driving a car. There are newspaper, radio and television  reports about automobile accidents. There is energy need to handle such risk. Automobile insurance handles it all. Automobile insurance creates for one to share ones losses with here who have the same risk. In this economic risk and shared most effectively when many people are involved. Automobile insurance possible loss among large number of people and sharing the lost among many people reduces financial loss.

Automobile insurance companies are big business both terms of sales and employment as it contributes to our economic system by offering many services as well as jobs. It protects all kinds of perils and is available for all kinds of life, properly and health protection, decision making and right insurance plan and policy are important tasks to the automobile making. As in banking, automobile insurance companies have statistical accounting, requirements and need for vast amount of data storage and information transmission. Over the years, manual methods have been employed in their business operations and activities.

A lot of problems is associated with manual methods of data processing and storage, it has had to insurance untimely and unreliable information and report generation.  The project researched into how the varying business operations and increasing range of activities of automobile insurance companies are well suited to computer applications. Computers can be widely employed in the wide range of their business activities including billing, collection, underwriting and claims transcribing, premium payments, assembling records and policy value to yield accurate and reliable information.

STATEMENT OF THE PROBLEM

Computerization of automobile insurance schemes and policies has not been and easy task and therefore a problem. There is need to get rid of it and find a solution to it. The major concern of this study is to eradicate and take care of the problems encountered by automobile insurance companies. Handle their wide range and complicated activities of underwriting and accounts processing. Modify the existing method of carrying out automobile insurance plans and polices. The impacts of software designed will solve the problems completely.

PURPOSE OF THE STUDY

To determine the capabilities of computer. To expose to people the implication of the software designed. To help for easy calculation and processing of underwriting and accounts processing of insurance policies. To help for easy storage and reference of insurance policies for decision making.

AIMS AND OBJECTIVES

The main aim of using new technology of computer is to reduce unit labours requirements of each business operation and come up with a quality management and successful automation of increasing number of work functions in data processing.

This study will help automobile insurance companies to address the dilemma of suffering from manual stress and take the advantages of software designed. The study will allow both organization and individual in achieving greater productivity. That is more work and able to be done in a less time while enjoying an activities of higher quality and improved productivity.

The software designed in this study will help company in record keeping premium payments calculation, calculating policy values and in underwriting to code rated and issuance of  policies. Employment of this study and software designed will create an avenue for rapid access to a variety of information creation and use of it. Information that is more current, more accurate and more accessible will in turn enhance in making better decision.

This study will automatically change the information gathering and decision making behaviours of automobile insurance companies. It will assist them in the use of computer in the conversion and processing of data into meaningful information. This study will help the automobile insurance companies in handling vast quantities of data, performing complex selection organization, manipulation and delivery output in an extremely rapid fashion to enhance faster decision making.

DELIMITATIONS

Due to the fact that not all insurance companies are computerized this study is delimited to universal insurance company, limited Enugu.