Abstract
Marine transportation is the oldest means of transportation, which is the most useful when the goods to be shipped are in bulk. Travelling through sea means there is high chance of mishapping even when safety regulations are in place, which could result in damage or loss of the ship or the shipments. Thus, Marine insurance is advisable as it covers the hull, cargo, freight and marine liabilities. Any losses or damages sustained during a marine journey must be settled as early as possible through Insurance. The process of declaring and claiming Insurance involves a lot of documentation, which is collected and stored in paper format, and third-party participation. In modern times, there has been a shift towards Digitization in every sector, which means everything is stored in a digital format. One of the key developments in Digitization has been the use of Blockchain technologies which support distributed ledgers, smart contracts, smart properties, storage, etc. Applications, in which there is involvement of money or assets, are reliant on blockchain because of the security, by encryption of data, and performance provided by it. In this paper, we have discussed the challenges and key issues associated with the declaration and claiming of Marine Hull Insurance through the existing system. To resolve these issues, we combine three of the latest technologies in Blockchain, namingly, Private Blockchain, Filecoin Protocol and Smart Contracts. Our proposed system is based on a digital platform, where all documents can be commonly accessed and third-party involvements are removed, resulting in simpler, faster and easier declaration and claiming of marine hull insurances that removes the complications in the present general procedure.
Highlights
The statistics suggest that, in 2016 alone, there were 768 reportable incidents related to ship accidents and failures [1]. This means that a high risk is Marine Insurance, one of the oldest forms of insurance, is a safeguard for these shipping corporations and transporters as it covers most of the financial losses that the transportation may amass between the point of origin to the destination
By switching the process of manual handling of documents to a digitized platform, we have initiated a transformation in Marine Hull Insurance
Private Blockchain and Filecoin deliver instant availability of documents for insurance companies and insurer as they provide a single point of access, which improves the collection and verification time
Summary
Travelling by water is one of the main modes of transportation, especially when there is a need of a colossal transport of goods. Marine Insurance, one of the oldest forms of insurance, is a safeguard for these shipping corporations and transporters as it covers most of the financial losses that the transportation may amass between the point of origin to the destination These losses encompass the damage to the hull - the main body of the ship or vessel, the terminals or to the cargo carrying the goods. The Marine Insurance acts as a savior for all the involved parties, it requires a lot of documentation and paperwork to get a marine insurance and to file a claim for the Vatsalya et al, International Journal of Advanced Research in Computer Science, 9 (3), May-June 2018, 94-99 insurance These intricacies of collecting documents lead to a waste in time, on an average 10-15 days. Since privacy and security are the keys here, we can perform the above implementations with the help of a private blockchain, in which as network administrators, the insured can control the access given to the other parties, such as legal adjusters, insurance companies, etc to the data insured shares and the smart contracts insured operates on
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