Blockchain technology is one of the most influential innovations of this century. This concept is widely associated with cryptocurrencies such as Bitcoin. But other industries use it to enhance efficiency and transparency. For example, you can use blockchain travel insurance for your next trip and get your benefits quickly and hassle-free.
MEXICO CITY, MEXICO – JANUARY 09: Mexican Airlines passengers wait for flights at Terminal 2 in Benito … [+]
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How does flight delay insurance work?
Frequent travelers know how important flight delay insurance is when you can use the extra money to cover unplanned expenses. These policies are usually affordable and potentially free if you book your itinerary using one of the best travel rewards credit cards.
When your flight is delayed for a qualifying period and reason, such as four hours due to bad weather, you are eligible for a benefit claim from the insurance provider.
The standard process requires submitting a claim and documentation to verify the delay.
It takes a long time to contact the insurance company and complete the paperwork. Depending on eligible benefits, efforts to file a compensation claim may not be worth it.
How Blockchain Technology Improves Flight Delay Insurance
Just as blockchain technology has revolutionized industries, so too can the travel insurance industry change for the benefit of travelers and agencies.
One of the unique products is flight delay insurance powered by the blockchain.
Instead of going through the arduous process of filing a claim with a long path of paperwork, fully licensed decentralized insurance platforms such as Etherisc use smart contracts to quickly distribute benefits to delay eligible flights.
Here’s how easy it is to get flight delay protection and file a claim:
- Register your flight approximately 24 hours before departure
- Connect your digital wallet to pay for coverage
- Your flight is at least 45 minutes late and is eligible for a claim
- Receive compensation automatically when your flight lands
As you can see in this example, no work is required on your behalf after you purchase coverage.
The insurance provider uses a decentralized network to monitor the status of your flight and (when you are eligible) to distribute compensation. One of the advantages of decentralization is that many nodes that use the Ethereum framework and Chainlink can track claims and provide instant payments.
Having multiple nodes reduces the risk of monitoring or payment failure that requires follow-up inquiries from the traveler.
With Etherisc FlightDelay coverage, you can purchase your document with a USDC stablecoin and receive your settlement with the same token. The platform is also rolling out ways to use fiat money and other cryptocurrencies.
This insurance company also uses blockchain and similar general insurance frameworks to issue insurance policies for crops and hurricanes.
Abstract
Travel insurance can be worth the cost when your flight has unexpected delays and cancellations. However, the claims process can be time consuming and cumbersome. Integrating blockchain with flight delay insurance is an optimistic sign of progress to make the insurance industry more efficient for travelers and service providers.
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