Hyderabad: Ola takes travellers for a ride, fleeces them at will

Hyderabad: Questions are raised over the silence of the Telangana State government and the Insurance Regulatory and Development Authority (IRDA) over Ola Cabs, the Bangaluru-based ridesharing company fleecing people in the name of insurance coverage.

It may be mentioned here that Ola Cabs has been collecting Ride Insurance at the rate of Rs 2 on every ride from its customers booking two, three and four-wheeler vehicles. This is despite that each of the vehicles that the Ola aggregates to provide to its customers should have an insurance cover for those travelling in it.

According to the State Transport Authority sources, the additional ride coverage becomes double coverage. That accident by a person (s) cannot be availed multiple times from multiple insurance companies for the same accident. The ride coverage component needs to be checked by the appropriate insurance authorities.

Secondly, Ola Cabs has also been collecting Rs 8 on every ride from its customers as an insurance premium for Covid coverage. The coverage includes a temperate check of the drivers before every ride, fumigation of the vehicle and maintaining of the Covid protocols by the drivers like wearing a mask, and sanitisation. The Covid insurance coverage Ola Cabs has been offering in a tie-up with the Aditya Birla Health Insurance.

"None of the Ola Cab representatives and authorities have been checking our temperate. Nor, have they asked us to check and report the temperature online before every ride, " said Naresh Nath (name changed), an auto driver, from Uppal, who runs his auto for Ola.

Lakesh Reddy from Musapet points out that he and his family and friends have been using Ola Auto and Ola Cabs. But, in the case of Ola Auto, hardly any of the auto drivers these days wear a mask. Occasionally, even the cab drivers come for rides without masks. And, hardly, there is any sign of fumigation of vehicles, particularly in the 'Mini' and 'Sedan' segments, and "I have no idea about the higher class like SUVs", he added.

Vouching for the same, L Vidaya a teacher in a private school in Himayat Nagar said, " people are more relaxed these days following the Centre and State government's relaxing the Covid norms. So, they are not bothered much when the auto drivers and cab drivers come without observing the Covid norms. Only cautious people still wear maks and keep personal sanitizers."

However, all three finds that they were not aware of the rules that no company is allowed to collect insurance without the expressed consent of the individuals. Taking advantage of the lack of insurance literacy of the people Ola Cabs has been collecting lakhs of rupees from its customers in the name of insurance by directly applying insurance to every ride without obtaining the prior consent of its customers based on an informed decision.

However, customers are asked to go to their profile and deactivate to opt-out if they don't want insurance coverage. This is a reverse implementation of insurance regulation, point out the transport officials.

Further, when the State health officials have lifted the Covid norms, how could the Ola charge Covid insurance coverage? On an average, the Ola allocates five rides to auto and cab drivers. This way, on an average Ola collect Rs 50 from each vehicle (bike, auto, cab segments) in a day by automatically applying insurance cover of Rs 10 on each ride. As neither the State nor the IRDA authorities are bothered the Ola has been collecting lakhs of rupees on daily basis from its customers.