Vehicle Insurance Automation Smart Contract

A comprehensive Clarity smart contract for automated vehicle insurance management on the Stacks blockchain. This contract handles policy lifecycle management, premium payments, claims processing, and automated settlements without intermediaries.

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Features

🚗 Policy Management

• Create new insurance policies with customizable coverage and duration
• Automatic premium collection and reserve pool management
• Policy renewal with extended coverage periods
• Policy cancellation with 50% refund mechanism
• Real-time policy status tracking (active, expired, cancelled)

📋 Claims Processing

• File insurance claims against active policies
• Owner-controlled claim approval/rejection workflow
• Automated payout processing from reserve pool
• Complete claim history tracking per policy
• Status tracking: pending, approved, rejected, paid

💰 Financial Management

• Centralized reserve pool for all premiums
• Automated fund validation before payouts
• Owner-controlled reserve withdrawals
• Deposit functionality for reserve replenishment
• Transparent fund tracking

🔒 Security Features

• Authorization checks for all sensitive operations
• Input validation for all user-provided data
• Owner-only administrative controls
• Active policy validation before claims
• Comprehensive error handling with 11 error codes

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Smart Contract Architecture

Data Structures

Policies Map

{
    owner: principal,
    vehicle-id: string-ascii 50,
    premium: uint,
    coverage: uint,
    start-block: uint,
    end-block: uint,
    status: uint  // 0=inactive, 1=active, 2=expired, 3=cancelled
}

Claims Map

{
    policy-id: uint,
    claimant: principal,
    amount: uint,
    description: string-ascii 256,
    filed-block: uint,
    status: uint,  // 0=pending, 1=approved, 2=rejected, 3=paid
    approved-amount: uint
}

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Usage Guide

For Policyholders

1. Create a Policy

(contract-call? .vehicle-insurance create-policy 
    "ABC-1234-XYZ"  ;; vehicle-id
    u1000000        ;; premium (1 STX in microSTX)
    u50000000       ;; coverage (50 STX)
    u52560          ;; duration (~1 year in blocks)
)

2. Renew Policy

(contract-call? .vehicle-insurance renew-policy 
    u1              ;; policy-id
    u52560          ;; additional duration
)

3. File a Claim

(contract-call? .vehicle-insurance file-claim 
    u1              ;; policy-id
    u10000000       ;; claim amount (10 STX)
    "Vehicle accident on Highway 101, front bumper damage"
)

4. Cancel Policy

(contract-call? .vehicle-insurance cancel-policy u1)

For Contract Owner

1. Approve Claim

(contract-call? .vehicle-insurance approve-claim 
    u1              ;; claim-id
    u8000000        ;; approved amount (8 STX)
)

2. Reject Claim

(contract-call? .vehicle-insurance reject-claim u1)

3. Process Payout

(contract-call? .vehicle-insurance process-payout u1)

4. Update Policy Status

(contract-call? .vehicle-insurance update-policy-status 
    u1              ;; policy-id
    u2              ;; new status (2=expired)
)

5. Withdraw Reserves

(contract-call? .vehicle-insurance withdraw-reserve 
    u5000000        ;; amount
    'SP123...       ;; recipient principal
)

Read-Only Functions

Check Policy Details

(contract-call? .vehicle-insurance get-policy u1)

Check Claim Status

(contract-call? .vehicle-insurance get-claim u1)

Get User's Policies

(contract-call? .vehicle-insurance get-user-policies 'SP123...)

Check Reserve Pool

(contract-call? .vehicle-insurance get-reserve-pool)

Verify Policy Active Status

(contract-call? .vehicle-insurance is-policy-active u1)

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Error Codes

Code	Constant	Description
u100	err-owner-only	Operation requires contract owner
u101	err-not-found	Policy or claim not found
u102	err-unauthorized	User not authorized for this action
u103	err-invalid-amount	Invalid monetary amount
u104	err-policy-expired	Policy is expired or inactive
u105	err-policy-active	Policy must be inactive
u106	err-insufficient-funds	Insufficient funds in reserve pool
u107	err-claim-exists	Claim already exists
u108	err-invalid-status	Invalid status value
u109	err-payment-failed	Payment transaction failed
u110	err-invalid-input	Invalid input data

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Status Codes

Policy Status

• 0: Inactive
• 1: Active
• 2: Expired
• 3: Cancelled

Claim Status

• 0: Pending review
• 1: Approved (awaiting payout)
• 2: Rejected
• 3: Paid

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Security Considerations

✅ Implemented Safeguards

• All user inputs are validated before processing
• Authorization checks on all state-changing operations
• Amount bounds checking to prevent overflow
• Reserve pool validation before payouts
• Active policy verification for claims
• Status transition controls

⚠️ Important Notes

• Only the contract owner can approve/reject claims and process payouts
• Policies must be active for claims to be filed
• Claims cannot exceed policy coverage limits
• Policy cancellation provides 50% refund only
• Reserve pool must have sufficient funds for payouts

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Deployment Instructions

1. Deploy Contract

   clarinet contract deploy vehicle-insurance

2. Verify Deployment

   clarinet console

3. Test Functions

   clarinet test

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Example Workflow

Complete Insurance Lifecycle

1. User purchases policy → Premium goes to reserve pool
2. Policy becomes active → Coverage starts immediately
3. User experiences accident → Files claim with description
4. Owner reviews claim → Approves with assessment amount
5. Owner processes payout → Funds transferred to claimant
6. Claim marked as paid → Reserve pool updated

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Testing

Unit Tests Coverage

• Policy creation and validation
• Premium payment processing
• Policy renewal and cancellation
• Claim filing and validation
• Claim approval/rejection workflow
• Payout processing
• Authorization checks
• Input validation
• Reserve pool management