RELATED APPLICATION

Benefit is claimed to Indian Provisional Application No. 3373/CHE/2010, titled "REAL-TIME INSURANCE CALCULATION SYSTEM AND METHOD THEREOF" by Logica Pvt. Ltd., filed on November 11, 2010, which is herein incorporated in its entirety by reference for all purposes.

FIELD OF THE INVENTION

The present invention generally relates to the field of insurance system, and more particularly relates to estimating an insurance premium of a insured premises in real-time.

BACKGROUND OF THE INVENTION

Current house/building insurances are period-based insurances which provide claims for damages caused due to an incident occurred in the insured premises (e.g., house/building and surrounding areas etc.) during the period of insurance such as theft, fire, damages due to electricity fluctuations, and damages from natural calamities.

In one of the existing insurance systems, an insurance fee is calculated based the value of house and house hold items, availability of necessary security devices installed within the house which prevents or alerts against theft, fire, electricity fluctuations, etc. Such systems consider variable insurance premium for houses based on the availability of above mentioned parameters. A lower premium is charged if a house is installed with such security devices and a surcharge is added to the premium if such security devices are not installed.

Further, currently known insurance systems merely consider availability of safety devices attached to a house/building at the time of issuing or renewing the insurance policy to calculate one time insurance premium for a fixed period such as one year.

BRIEF DESCRIPTION OF THE ACCOMPANYING DRAWINGS

Figure 1 is a block diagram illustrating an exemplary insurance system for computing an insurance premium of an insured premises in real-time, according to one embodiment.

Figure 2 is an exploded view of a risk factor monitoring device such as those shown in Figure 1, according to one embodiment.

Figure 3 is a process flowchart of an exemplary method of computing an insurance premium associated with an insured premises in real-time, according to one embodiment.
The drawings described herein are for illustration purposes only and are not intended to limit the scope of the present disclosure in any way.

DETAILED DESCRIPTION OF THE INVENTION

The present invention provides a method and system for charging an insurance premium of an insured premises in real-time. In the following detailed description of the embodiments of the invention, reference is made to the accompanying drawings that form a part hereof, and in which are shown by way of illustration specific embodiments in which the invention may be practiced. These embodiments are described in sufficient detail to enable those skilled in the art to practice the invention, and it is to be understood that other embodiments may be utilized and that changes may be made without departing from the scope of the present invention. The following detailed description is, therefore, not to be taken in a limiting sense, and the scope of the present invention is defined only by the appended claims.

Figure 1 is a block diagram illustrating an exemplary insurance system 100 for computing an insurance premium of an insured premises in real-time, according to one embodiment. In Figure 1, the insurance system 100 includes monitoring devices 102A-N, a risk factor monitoring device 104, and a backend server 106. The monitoring devices 102A-N and the risk monitoring device 104 resides in the insured premises 108 and connected to each other through wires or wirelessly. The risk factor monitoring device 104 is connected to the backend server 106 through a wired/ wireless channel 110.

In an exemplary operation, the monitoring devices 102A-N capture static and dynamic conditions associated with the insured premises 108 such as a house/office building or any other similar structure. For example, the monitoring devices 102A-N may include devices that monitor state of the insured premises 108 and the insured equipments therein. The static conditions of the insured premises 108 includes presence of security devices, availability of security personnel, number of electric and electronic devices installed, parking space, presence of vehicle in parking space, presence of a security locker system, and number of doors and windows. The dynamic conditions of the insured premises comprises 108 includes an operational state of security devices, an operational state of electric and electronic devices, presence of security personnel, an operational state of a security locker system, door and window condition, and seasonal and weather conditions.

The risk monitoring device 104 periodically collects the captured static and dynamic conditions from the monitoring devices 102A-N and computes a risk factor associated with each of the static and dynamic conditions. In one embodiment, the risk monitoring device 104 is dynamically configured through configuration settings by the backend server 106 for computing a risk factor associated with various static and dynamic conditions. The configuration settings may include standard static and dynamic conditions that should be maintained in the insured premises 108 at any point of time as per the insurance policy. The risk factor monitoring device 104 compares the collected static and dynamic conditions with the preset standard static and dynamic conditions and
computes a risk factor associated with each of the collected static and dynamic conditions. The risk factor monitoring device 104 displays the risk factor associated each of the static and dynamic conditions on a display so that the owner of the insured premises can take preventive measures to reduce the risk factor. It should be noted that, lower the risk factor, lower is the insurance premium associated with the insured premises.

Also, the risk factor monitoring device 104 communicates the risk factor associated with each of the static and dynamic conditions collected over a time period to the backend server 106. Accordingly, the backend server 106 computes an insurance premium associated with the insured premises in real¬time based on the risk factor associated with each of the static and dynamic conditions. In one embodiment, the backend server 106 compares the risk factor associated with each of the static and dynamic conditions with a predetermined threshold risk factor. Further, the backend server 106 determines whether the risk factor associated with each of the static and dynamic conditions is greater than the predetermined threshold. If the risk factor is greater than the predetermined threshold, then the back server 106 adds a surcharge to a standard insurance premium for the insured premises 108 to compute a final insurance premium. Additionally, the back end server 106 notifies the owner the insured premises 108 when the risk factor associated with each of the static and dynamic conditions are greater than the predetermined threshold risk factor. On the other hand, if the risk factor is less than or equal to the predetermined threshold value, the backend server 106 subtracts a discount from the standard insurance premium to arrive at a final insurance premium. The amount of discount and surcharge may depend on the total risk factors computed for the static and dynamic conditions. If the insured premises 108 is having a prepaid insurance account, then the backend server 106 deducts the final insurance premium from the prepaid account of the insured premises, otherwise charged on a post-paid account.

In some embodiments, the risk factor monitoring device 104 estimates the final insurance premium in real-time instead of the backend server 106. In these embodiments, the risk factor monitoring device 104 communicates the final insurance premium and the risk factors to the backend server 106 so that the backend server 106 deducts the final insurance premium from the prepaid account or charges in a post-paid account.

Figure 2 is an exploded view of the risk factor monitoring device 104 such as those shown in Figure 1, according to one embodiment. The risk factor monitoring device 104 includes an information collection unit 202, a risk factor computation unit 204, a premium computation unit 206, a display unit 208 and a communication interface 210.

The information collection unit 202 is configured for periodically collecting static and dynamic conditions associated with the insured premises 108. For example, the information collection unit 202 may be coupled to a home automation system (not shown) residing the insured premises 108 for collecting the static and dynamic conditions from the monitoring devices 102A-N. The risk factor computation unit 204 is configured for computing a risk factor for each of the static and dynamic conditions associated with the insured premises 108using the preset standard static and dynamic conditions.

The premium computation unit 206 is configured for estimating an insurance premium associated with the insured premises 108 in real-time based on the risk factor computed for each of the static and dynamic conditions. In one embodiment, the premium computation unit 206 compares the risk factor for each of the static and dynamic conditions with a preset threshold risk factor and determines whether the risk factor associated with each of the static and dynamic conditions is greater than the preset threshold risk factor. Accordingly, the premium computation unit 206 estimates a final insurance premium by applying a surcharge or discount to the standard insurance premium based on the risk factor associated with each of the static and dynamic conditions.

The display unit 208 is configured for displaying at least one of the risk factors associated with the static and dynamic conditions and the estimated insurance premium for the insured premises 108. The communication interface 210 is configured for communicating the estimated insurance premium for the insured premises 108 and the risk factor associated with each of the static and dynamic conditions to the backend server 106 via a wireless channel such that the backend server 106 charges the estimated insurance premium to the owner of the insured premises 108. Additionally, the communication interface 210 is configured for receiving configuration settings from the backend server 106 which are then applied by the premium computation unit 206.

Figure 3 is a process flowchart 300 of an exemplary method of charging an insurance premium associated with the insured premises 108 in real-time, according to one embodiment. At step 302, static and dynamic conditions are periodically collected from the monitoring devices 102A-N. At step 304, a risk factor associated with each of the static and dynamic conditions is computed based on the standard static and dynamic conditions. The risk factor associated each of the static and dynamic conditions are displayed on the display unit 208 so that the owner of the insured premises 108 can take preventive measures to reduce the risk factor in future.

At step 306, the risk factor associated with each of the static and dynamic conditions collected over a time period is transmitted to the backend server 106. At step 308, an insurance premium associated with the insured premises is estimated in real-time based on the risk factor associated with each of the static and dynamic conditions.

In one embodiment, the risk factor associated with each of the static and dynamic conditions is compared with a predetermined threshold risk factor. Then, it is determined whether the risk factor associated with each of the static and dynamic conditions is greater than the predetermined threshold risk factor. If the risk factor is greater the predetermined threshold risk factor, then a surcharge is added to a standard insurance premium for the insured premises 108 to estimate a final insurance premium. If the risk factor is less than or equal to the predetermined threshold value, a final insurance premium is computed by subtracting a discount from the standard insurance premium. The amount of discount and surcharge may depend on the total risk factors computed for the static and dynamic conditions. If the insured premises 108 is having a prepaid insurance account, then at step 310, the final insurance premium is deducted from the prepaid account of the insured premises 108.

The following description provides exemplary embodiments in accordance with the foregoing description. In one embodiment, the insurance premium is dynamically calculated on a real time basis based on functioning of various equipments/devices in the insured premises 108. For example, if the security devices are installed in a house and are functioning well, the insurance premium charged is lesser compared to house in which there are no security devices installed, or a house where the security devices are not functioning well.

In another embodiment, the insurance premium is calculated in real-time based on availability of security personnel within the insured premises 108. An access card system connected to a home automation system may help identify whether any security personnel is on duty within the insured premises 108 during day as well as night time and monitor the period during which the security personnel is not available within the insured premises 108. In this manner, the insurance premium is calculated based on the availability and non-availability of the security person in real-time.

In yet another embodiment, the insurance premium is dynamically calculated based on a number of electric and electronic devices installed in the insured premises 108 and their functioning. The home automation system helps identify a number of such devices and their functioning, including power consumption, load added to the power supply system to identify whether the system is overloaded with appliances connected to the insurance system 100 when the permissible limits are exceeded, or any irregularities in their functioning, etc. The information collected from the home automation system by the risk factor monitoring device104 may transferred to the backend server 106 for processing and calculating the variable insurance premium in real-time. Alternatively, the insurance premium is computed by the risk factor monitoring system 104.

In a further another embodiment, the insurance premium is computed based on availability of a covered vehicle parking space and presence of a vehicle detected via suitable sensors (e.g., monitoring devices 102A-N). The sensors indicate availability or non-availability of vehicles in the parking space to the risk factor monitoring device 104. If there are no vehicle parked within the insured premises 108, the estimated insurance premium is lesser compared to the situation where the vehicle is parked within the insured premises 108.

In yet a further embodiment, the insurance premium is computed based on availability of a security locker system. For example, if the security locker system is not available in the premises 108, a surcharge is added to the insurance premium, thereby increasing the insurance premium that is applicable.

In still another embodiment, the insurance premium is computed based on the conditions of the external facing doors and windows. A plurality of conditions and their combinations are monitored to calculate the insurance premium such as

1. If the main door is locked from outside:

a. It is checked whether any of the other external facing doors other
than the main door or windows are open. If they are open, a
surcharge is added to the insurance premium; and

b. The availability of the security person is checked. If the security
person is not present, an additional surcharge is added to the
insurance premium.

2. If the main gate is locked from outside:
a. It is checked whether any of the external facing doors including the main door, or windows are open. Accordingly, a surcharge is added to the insurance premium.

The open or close position of the windows and doors are identified with the help of suitable sensors placed at the doors or windows which communicate with the home automation system which in turn communicates with the risk factor monitoring device, and/or suitable electric/electronic switches fitted on the doors/windows which can be accessed by the home automation system which communicates the details directly to the risk monitoring security equipment. In further another embodiment, the insurance premium is computed in real-time based on seasonal and weather changes like rain, lightning, wind speed etc.

The present embodiments have been described with reference to specific example embodiments, it will be evident that various modifications and changes may be made to these embodiments without departing from the broader spirit and scope of the various embodiments. Furthermore, the various devices, modules, selectors, estimators, and the like described herein may be enabled and operated using hardware circuitry, for example, complementary metal oxide semiconductor based logic circuitry, firmware, software and/or any combination of hardware, firmware, and/or software embodied in a machine readable medium. For example, the various electrical structure and methods may be embodied using transistors, logic gates, and electrical circuits, such as application specific integrated circuit.

We Claim:

1. A method of charging an insurance premium of an insured premises in real¬
time, comprising:
collecting a plurality of static and dynamic conditions associated with an insured premises from one or more monitoring devices;
periodically computing a risk factor associated with each of the static and dynamic conditions by a risk factor monitoring device;
communicating the static and dynamic conditions and the risk factor associated with each of the static and dynamic conditions to a backend server; and
estimating an insurance premium for the insured premises in real-time based on the risk factor associated with each of the static and dynamic conditions.

2. The method of claim 1, further comprising:
displaying the risk factor associated with each of the static and dynamic conditions on a display unit.

3. The method of claim 1, further comprising:
deducting the insurance premium from a prepaid account associated with the insured premises.

4. The method of claim 1, wherein the static conditions of the insured premises comprises presence of security devices, availability of security personnel, number of electric and electronic devices installed, parking space, presence of vehicle in parking space, presence of a security locker system, and number of doors and windows.

5. The method of claim 1, wherein the dynamic conditions of the insured premises comprises an operational state of security devices, an operational state of electric and electronic devices, presence of security personnel, an operational state of a security locker system, door and window condition, and seasonal and weather conditions.

6. The method of claim 1, further comprising:
configuring the risk factor monitoring device with configuration settings for computing the risk factor associated with each of the static and dynamic conditions, wherein the configuration settings includes standard static and dynamic conditions for the insured premises.

7. The method of claim 6, wherein collecting the plurality of static and dynamic
conditions associated with the insured premises from the one or more monitoring
devices comprises:
collecting static and dynamic conditions associated with the insured premises from a home automation system installed in the insured premises at periodic time intervals based on the configuration settings.

8. The method of claim 7, wherein the periodically computing the risk factor
associated with each of the static and dynamic conditions by the risk factor
monitoring device comprises:
computing the risk factor associated with each of the plurality of static and dynamic conditions using the configuration settings.

9. The method of claim 8, wherein estimating the insurance premium for the
insured premises based on the risk factor associated with each of the static and
dynamic conditions comprises:
comparing the risk factor for each of the plurality of static and dynamic conditions with a preset threshold risk factor;
determining whether the risk factor associated with each of the plurality of static and dynamic conditions is greater than the preset threshold risk factor;
if so, estimating an insurance premium for the insured premises by subtracting a discount from a standard insurance premium; and

if not, estimating an insurance premium for the insured premises by adding a surcharge to the standard insurance premium.

10. A system comprising:
a risk factor monitoring device configured for:
collecting a plurality of static and dynamic conditions associated with an insured premises from one or more monitoring devices; and
periodically computing a risk factor associated with each of the static and dynamic conditions; and
a backend server wirelessly connected to the risk factor monitoring device for estimating an insurance premium for the insured premises in real-time based on the risk factor associated with each of the static and dynamic conditions.

11. The system of claim 10, wherein the risk factor monitoring device is configured for displaying the risk factor associated with each of the static and dynamic conditions.

12. The system of claim 10, wherein the backend server is configured for deducting the insurance premium from a prepaid account associated with the insured premises.

13. The system of claim 10, wherein the static conditions of the insured premises comprises presence of security devices, availability of security personnel, number of electric and electronic devices installed, parking space, presence of vehicle in parking space, presence of a security locker system, and number of doors and windows.

14. The system of claim 10, wherein the dynamic conditions of the insured premises comprises an operational state of security devices, an operational state of electric and electronic devices, presence of security personnel, an operational state of a security locker system, door and window condition, and seasonal and weather conditions.

15. The system of claim 10, wherein the backend sever configures the risk factor monitoring device with configuration settings for computing the risk factor associated with each of the static and dynamic conditions, wherein the configuration settings includes standard static and dynamic conditions for the insured premises.

16. The system of claim 15, wherein the risk factor monitoring device is configured for collecting static and dynamic conditions associated with the insured premises from a home automation system installed in the insured premises at periodic time intervals based on the configuration settings.

17. The system of claim 16, wherein the risk factor monitoring device is configured for computing the risk factor associated with each of the plurality of static and dynamic conditions using the configuration settings.

18. The system of claim 17, wherein the backend server is configured for:
comparing the risk factor for each of the plurality of static and dynamic
conditions with a preset threshold risk factor;
determining whether the risk factor associated with each of the plurality of static and dynamic conditions is greater than the preset threshold risk factor;
if so, estimating an insurance premium for the insured premises by subtracting a discount from a standard insurance premium; and
if not, estimating an insurance premium for the insured premises by adding a surcharge to the standard insurance premium.

19. The system of claim 18 wherein the backend server is configured for
notifying the owner of the insured premises when the risk factor associated

with each of the static and dynamic conditions are greater than the predetermined threshold risk factor.

20. An apparatus comprising:
an information collection unit configured for monitoring a plurality of static and dynamic conditions associated with an insured premises;
a risk factor computation unit configured for periodically computing a risk factor for each of the plurality of static and dynamic conditions; and
a premium computation unit configured for estimating an insurance premium associated with the insured premises in real-time based on the risk factor computed for each of the plurality of static and dynamic conditions.

21. The apparatus of claim 19, further comprising:
a display unit configured for displaying at least one of the risk factor associated with the each of the plurality of static and dynamic conditions and the estimated insurance premium for the insured premises.

22. The apparatus of claim 19, further comprising:
a communication interface configured for communicating the insurance premium and the risk factor associated with each of the plurality of static and dynamic conditions to a backend server via a wireless channel such that the backend server charges the estimated insurance premium to the owner of the insured premises.

23. The apparatus of claim 21, wherein the communication interface is
configured for receiving configuration settings from the backend server, wherein

the configuration settings comprises standard static and dynamic conditions associated with the insured premises, and a preset threshold risk factor for each of the standard static and dynamic conditions.

24. The apparatus of claim 22, wherein the premium computation unit is configured for automatically applying the configuration settings for estimating an insurance premium associated with the insured premises.

25. The apparatus of claim 23, wherein the information collection unit is configured for collecting the static and dynamic conditions associated with the insured premises from a home automation system installed in the insured premises based on the configuration settings.

26. The apparatus of claim 24, wherein the risk factor computation unit is configured for computing the risk factor associated with each of the plurality of static and dynamic conditions using the preset standard static and dynamic conditions.

27. The apparatus of claim 25, wherein the premium computation unit is configured for:
comparing the risk factor for each of the plurality of static and dynamic conditions with the preset threshold risk factor;
determining whether the risk factor associated with each of the plurality of static and dynamic conditions is greater than the preset threshold risk factor;
if so, estimating an insurance premium for the insured premises by subtracting a discount from a standard insurance premium; and
if not, estimating an insurance premium for the insured premises by adding a surcharge to the standard insurance premium.

28. The apparatus of claim 19, wherein the static conditions of the insured premises comprises presence of security devices, availability of security personnel, number of electric and electronic devices installed, parking space, presence of vehicle in parking space, presence of a security locker system, and number of doors and windows.

29. The apparatus of claim 19, wherein the dynamic conditions of the insured premises comprises an operational state of security devices, an operational state of electric and electronic devices, presence of security personnel, an operational state of a security locker system, door and window condition, and seasonal and weather conditions.