diff --git a/blockchain_development_integration/pi_network/tests/Insurance.test.js b/blockchain_development_integration/pi_network/tests/Insurance.test.js
new file mode 100644
index 000000000..6d3605f9b
--- /dev/null
+++ b/blockchain_development_integration/pi_network/tests/Insurance.test.js
@@ -0,0 +1,28 @@
+const { expect } = require("chai");
+const { ethers } = require("hardhat");
+
+describe("Insurance Contract", function () {
+    let Insurance, insurance, policyHolder;
+
+    beforeEach(async function () {
+        [policyHolder] = await ethers.getSigners();
+        Insurance = await ethers.getContractFactory("Insurance");
+        insurance = await Insurance.deploy();
+        await insurance.deployed();
+    });
+
+    it("should allow a user to purchase a policy", async function () {
+        await insurance.connect(policyHolder).purchasePolicy(ethers.utils.parseEther("1"), ethers.utils.parseEther("5"), { value: ethers.utils.parseEther("1") });
+        const policy = await insurance.policies(1);
+        expect(policy.policyHolder).to.equal(policyHolder.address);
+        expect(policy.coverageAmount).to.equal(ethers.utils.parseEther("5"));
+        expect(policy.isActive).to.be.true;
+    });
+
+    it("should allow a policy holder to claim a policy", async function () {
+        await insurance.connect(policyHolder).purchasePolicy(ethers.utils.parseEther("1"), ethers.utils.parseEther("5"), { value: ethers.utils.parseEther("1") });
+        await insurance.connect(policyHolder).claimPolicy(1);
+        const policy = await insurance.policies(1);
+        expect(policy.isActive).to.be.false;
+    });
+});