Blockchain technology is one of the most influential innovations of this century. This concept is most widely associated with cryptocurrencies such as bitcoin. But other industries are using it to boost efficiency and transparency. For instance, you may use blockchain travel insurance for your next flight and receive your benefits sooner and hassle-free.
MEXICO CITY, MEXICO – JANUARY 09: Passengers of Aeromexico wait for flights at Terminal 2 of Benito … [+]
How Flight Delay Insurance Works
Frequent travelers know how valuable flight delay insurance can be when you can use the extra cash to cover unplanned expenses. These policies are usually affordable and potentially free if you book your itinerary with one of the best travel rewards credit cards.
When your flight is delayed for a qualifying duration and reason, such as four hours due to inclement weather, you’re eligible for a benefits claim from the insurance provider.
The standard process requires submitting a claim and documentation to verify the delay.
Contacting the insurance company and completing the paperwork is time-consuming. Depending on your eligible benefits, the effort to file a claim may not be worth the compensation.
How Blockchain Improves Flight Delay Insurance
Just as blockchain technology is revolutionizing industries, the travel insurance industry can also be changing for the benefit of travelers and agencies.
One unique product is blockchain-supported flight delay insurance.
Instead of undergoing the tedious process of filing a claim with a lengthy paperwork trail, fully-licensed decentralized insurance platforms like Etherisc are using smart contracts to quickly distribute benefits for qualifying flight delays.
Here’s how easy it is to get flight delay protection and submit a claim:
- Register your flight approximately 24 hours before departure
- Connect your digital wallet to pay for coverage
- Your flight is delayed at least 45 minutes and becomes eligible for a claim
- Automatically receive compensation when your flight lands
As you can see with this example, no work is required on your behalf after purchasing coverage.
The insurance provider uses a decentralized network to monitor your flight status and (when eligible) distribute compensation. One benefit of being decentralized is that several nodes using the Ethereum and Chainlink framework can track claims and provide instant payments.
Having multiple nodes reduces the risk of a monitoring or payment failure that requires follow-up inquiries from the traveler.
With the Etherisc FlightDelay coverage, you can purchase your policy with the USDC stablecoin and receive your settlement with the same token. The platform is also rolling out ways to utilize fiat money and other cryptocurrencies.
This insurer also uses blockchain and similar generic insurance frameworks to issue crop insurance and hurricane insurance policies.
Summary
Travel insurance can be well worth the cost when your trip has unforeseen delays and cancellations. However, the claims process can be time-consuming and stressful. Integrating blockchain with flight delay insurance is an optimistic sign of progress to make the insurance industry more efficient for travelers and providers.
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