Peer-To-Peer Coverage
Although each participants might be different in terms of gender, ages, lifestyle etc. Takaful-Chain has control the risk by segment the age group and set the grace period of 90 days before permission to claim. With the pre-set criteria and mechanism, the risk of participants will be unify and treated equally, most importantly the claiming process is decentralised.
The joining fees for each policyholder is USD $0.34 and the total of claim will be shared across by participants and with the cap of USD6.78 per month. The fairness of such P2P coverage can be achieved by arranging a symmetric relationship within the group of participants. This implies that participant A’s P2P coverage of participant B matches participant B’s P2P coverage of participant A with respect to the corresponding risk coefficients, the same risk coefficients is applied to other large pool of participants ∞ , as below:
P2P Coverage A,B Γ— Risk A Γ— Risk ∞ = P2P Coverage B,A Γ— Risk B Γ— Risk ∞
For example 2, participant A and participant B are opt-in for Takaful-Chain insurance. The risk coefficient of participant A having illness is 0.0002 and this will be the same as participant B.
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