New insurance to guard against price surges on ride-hailing apps when it rains | TODAYonline

SINGAPORE — To deal with a big peeve among users of ride-hailing applications, a new insurance product promises protection against price surges for rides during wet weather.

Called Droplet, the new product by insurer NTUC Income offers users up to 60 per cent of their fares or cancellation fees back if it was raining at the time of pick-up.

The product is now open to users who book a ride via ride-hailing app Grab, but will cover other similar apps by the year’s end, Income announced on Wednesday (Oct 24).

Insurance premiums are dynamic and will vary according to the probability of rain as forecast by the National Environment Agency. The product will cost between S$1 and S$9.60 a day.

Financial analyst Lee Pei Zi, 27, said that she will probably not buy the product because it is a “hassle”.

The probability of rain is “erratic and might not be accurately forecast” as well, she added.

If she does buy the policy, she might eventually not take the ride at all and the premium paid will be for nought.

In the event that prices surge for Grab rides, Ms Lee said that she will look for cheaper options such as taxis or public transport.

Business development professional Jeremy Koh, 26, said that very few commuters plan their rides.

“If they already know that they need a ride in the near future, there are already functions like GrabHitch, where they can book the rides early. The prices do not surge, too,” he said, referring to Grab’s carpooling service.

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TODAYonline | New insurance to guard against price surges on ride-hailing apps when it rains.