Summary on InsurAce 2nd Claim Request launched in April 2021, with all major use cases such as capital underwriting, cover offering, data publication, etc going through extensive testing.

The claim process, which is an indispensable part of the insurance cycle, did not go through the same level of testing as we were yet to receive a claim request until we received our first claim in June 2021. Our first claim was handled without dispute, and we took time to create and validate our end-to-end business cycle to ensure that all future claims will be properly handled.

Upon receiving our 2nd claim on 9th Jan, 2022, we managed to follow the same process as the 1st one (You can refer to Summary on InsurAce 1st Claim Request for details). However, our investigation concluded with the belief that this 2nd claim was due to a user testing our system and functionality. Details can be found under subsequent sections in this article. To prevent the same scenario happening again and to ensure community resources are always efficient, we have made a minor change to our claim assessment. Kindly find below our updated claim assessment process and an overview of how this 2nd claim was processed at various stages.

Claim Assessment Process

For, the claim assessment is jointly handled between the Advisory Board and our community Claim Assessors through claim investigation and community voting. Below is a simplified flow of our claim assessment process, whereas the detailed assessment process can be found here.

Figure 1: Claim Assessment Process

Execution of the Process

# Stage 1: On receiving the claim request

The applicant submitted a claim request on 09/01/2022 regarding the smart contract vulnerability cover he bought for Tulip Protocol, stating he wanted to make a claim. Below is the claim request details submitted by the applicant:

Figure 2: Claim Request Details

# Stage 2: Investigation

Following our claim assessment process in Figure 1, the Advisory Board started the investigation to verify the case right after receiving the request.

We have checked with Tulip Protocol, there is no reported exploit on their smart contracts between the start time of this cover (2022/01/07 13:35:09 +UTC) and the requested time of this claim (2022/01/09 11:11:53 +UTC). There was only a UI display error identified and resolved. No funds are lost.

For details, kindly refer their official twitter announcement:

As the applicant didn’t provide any detailed information on his loss such as the impacted wallet address, the proof of loss, description of the loss etc., the Advisory Board was unable to proceed further. We then made an announcement immediately, requesting the application to contact us and send the proof of loss by 13th Jan, 23:59 (GMT+8). However, the applicant has failed to do so and we still haven’t received anything from the applicant at the time of writing.

Due to lack of evidence to conduct any further investigation regarding this claim and to verify the actual loss, the Advisory Board made a Claim Investigation Report containing the investigation findings, and proposed a claim payout advice of “Reject without vote”.

The Claim Investigation Report has been released to the community and you can refer to the full Report for details.

Please note, the applicant is still able to submit another claim together with sufficient proof of loss during the cover period which is stated in the cover or within 15 days after the cover expires.

We would also like to confirm that due to this claim, we have made a minor change regarding invalid claims. If a claim request fails to provide sufficient evidence or has previously been rejected by the Advisory Board/Claim Assessor more than 3 times, then this will be classified as an invalid claim and will be rejected without a vote.


Now that this second claim request has been completed, the end-to-end full business cycle has been fully validated once again and proven to work well. While we expect this process will never need to be activated again, with the hope that our users’ assets remain completely safe, we are now more than confident that our protocol has the capability to provide a reliable and trustworthy service in case of another unfortunate situation.

A gentle reminder: All applicants must submit sufficient proof of loss when making claims. Without the submission of evidence, the advisory board will create the report and automatically reject the claim without proceeding to the community vote. We recommend that all applicants drop us an email after making a claim so we can contact you if we need more information.

We hope this all makes sense and we look forward to continuing to safeguard your DeFi journey. We also welcome any community suggestions that would allow us to improve our process overall.

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