Ola offers upto Rs 5 lakh free insurance cover to 9 lakh driver partners

In a neck-to-neck competition with ride-hailing Uber, Indian cab major Ola has tied up with Bajaj Allianz to offer a comprehensive insurance programme for the driver partners. The Bengaluru-based company will offer a cover of up to Rs 5 lakh to their 9 lakh driver partners.

The insurance programme will cover outstanding vehicle loan obligation of driver partners, irrespective of the loan amount; children's education fee (up to Rs 24,000 per year) per child till class 10th and business loss reimbursement of up to Rs 750 per day for three months, in case of temporary disability.

"'Chalo Befikar' Insurance will be provided to all active driver partners on the Ola platform offering a cover of up to Rs 5 lakh. This comprehensive scheme provides daily benefits in case of hospitalisation that covers business losses, apart from taking care of outstanding car loans and children's education," Ola said in a statement.

Also Read: HDK-owned Namma TYGR launches app-based cab service in Bengaluru, to counter Ola, Uber

Unleashing aggressive mode, the company is leaving no stone unturned to maintain its supremacy in cab facility. On Wednesday, it announced a partnership with Larsen and Toubro Metro Rail Hyderabad Limited (LTMRHL) for integration of Ola services including Ola Money with TSavaari.

This integration will allow LTMRH commuters to recharge their metro smart cards directly from the Ola Money app. In addition, users will be able to book an Ola cab or autorickshaw directly through their TSavaari apps.

In August, its competitor Uber tied up with ICICI Lombard General Insurance to provide free insurance to its 4,50,000 drivers. The new policy will provide free coverage for accidental death and disablement, hospitalization, and outpatient medical treatment in case of an accident while online on the Uber App.

The insurance by ICICI Lombard is said to provide cover ranging from 500,000 rupees ($7,814) in case of death to 50,000 rupees ($781) for outpatient treatment.

The report was first published in ET.