How It Works

1. Policy Creation

Insurance policies are created as smart contracts on the blockchain. These smart contracts contain all terms and conditions, including coverage details, premium amounts, and claim conditions.

2. Premium Collection

Policyholders pay premiums in cryptocurrency or fiat currency, which are securely recorded on the blockchain. These funds are held in a decentralized escrow until needed.

3. Claim Filing and Processing

When an insured event occurs, the policyholder files a claim through the BonkCover platform. The smart contract verifies the claim conditions automatically. For example, in the case of a flight delay, the smart contract verifies the delay through trusted oracles and triggers the claim payout.

4. Claim Payout

Once the claim is verified, the smart contract automatically releases the payout to the policyholder's wallet, ensuring fast and efficient claims handling.