Is there ELI5 explanation of how such insurance will work in practice?
If I had my funds insured and the exchange was hacked - how do I make a claim? Who and how decide on whether I get paid and when?
Iirc you dont need to make a claim. Hacks are major events and will be picked up by the insurance oracles (not sure how they work). The smart contract will start the transfer once apporved by the Inchain insurance committee (elected by the token holders).
As for timeframe I dont know. I guess it couldnt happen until the extend of the hack is made public.