Umbrella Coin review

Umbrella Coin is basically a risk management project designed for both individuals and businesses.

The initial aim of Umbrella Coin is remove the ‘out-of-pocket’ expenses such as deductibles, co-insurance, co-pay and denials for pre-existing conditions which come with traditional insurance policies. To achieve this, Umbrella Coin has developed a completely decentralized blockchain platform by the Ethereum Network.

Users will buy UMC Tokens which will be placed in an Umbrella Coin wallet. With the UMC they will be able to buy a policy. Settlement of claims is carried out by the community of UMC Token holders who will be rewarded for their assistance. There are a number of conditions to protect the system from abuse and other fraudulent activities. (see features below)

Whilst Umbrella Coin’s eventual goal is to become an outright provider of low-cost insurance, it is important to note that at this present time Umbrella Coin is not selling insurance policies.


A number of measures have been drawn up to prevent fund-depletion:

  • Starter Fees

A one-off fee of 20% policy value is required when taking out a policy. This is to ensure there remains sufficient pooled-funds.

  • Early Withdrawal Fees

Policyholders who choose to terminate a policy before its end date will be charge a penalty fee of 40% of their original investment.

  • Cooling Period

No claims can be within the first 90 days (from date of policy creation). This is to prevent abuse by people taking a policy out just after an event has happened or a planned event is imminent (i.e. a visit to the doctors).

  • Fraudulent Claims

For members discovered to have made a fraudulent claim, it will be proposed that the policy is canceled and all funds are retained within the pool.

  • Minimum Policies

As community members are the people deciding on other member’s claims, some people might attempt to own more than one wallet to cheat the system. To guard against this, Umbrella Coin’s founders propose creating a minimum policy amount.

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