Classic bike insurance is cheap, so I recommend using it if possible. But unfortunately in Germany, it is difficult to ensure bikes that are older than 60 months, and if you bought a used bike and you don't have a serial number, then insurance is not possible at all. This is where decentralized microinsurance with elements of a decentralized autonomous organization (DAO) comes to the rescue.
The first step to ensure your bike is to apply to your local DAO. The application consists of the first payment, an indication of the current value of the bike in the network's native currency, and a photo. Next, you need to wait until the DAO allows you to join. You will be insured as long as you pay and are a member of the DAO.
If your parking lot does not yet have a DAO, then you can just as easily create one and invite participants by printing a QR code.
This model has unique features that are not found in classic insurance. Your contributions are yours in full until an incident occurs. You can leave the organization at any time by withdrawing the balance of your funds or transferring them to another organization if you have moved. This way you can recover the full value of your bike after a few years, which will allow you to buy a more expensive bike. Any member of the organization can propose a change in the size of contributions, a common expense, such as a new parking lock, or the exclusion of an unscrupulous member. At the same time, you completely preserve your anonymity, because. participants see only bicycles in the parking lot, their photos in applications, and anonymous senders.
In the event of an incident, you assess the damage and send a request again, this time for damages, where you indicate the amount of damage and a photo. Next, you need to wait for the DAO to confirm the request. You will receive compensation to your wallet immediately after receiving the required number of signatures.
Money from the compensation fund are extracted according to the formula:
Expense part = Expense / Number of participants with a positive balance
If the Expense part has not been completely deducted from at least one balance, then the process will be repeated until the original Expense is collected.
This model is not without weaknesses, so for effective work, it is necessary that there are many small DAOs, for example, parking at the house, then participants will be able to control fairness. The cheater will not be able to get compensation when his bike is still in the parking lot, and the one who empties the fund too often will no longer be allowed into the organization, as well as the one who does not use the parking lot. In the event of an incident, the injured party will receive commensurate compensation if sufficient funds have been accumulated in the fund.
Similarly, you can ensure other areas of life that cannot be fully automated and the law does not help.