NTUC Income offers protection against surge pricing on rainy days
Anyone using ride-hailing services knows the curse of surge pricing all too well, but a new product aims to take out some of the sting.
Droplet is an insurance product that protects commuters against unpredictable price rises on platforms such as Grab due to rain.
The NTUC Income plan announced yesterday allows customers to get a payout of up to 60 per cent of their fare or cancellation fee when they hail a ride if it is raining at the point of pick-up.
Customers pay a premium of not more than $9.60 a day, depending on the forecast. They can submit up to $50 of ride receipts a day for claims.
Those who want Droplet coverage must buy the "rainsurance" at least a day ahead of their rides. Real-time weather forecasts are available at the www.droplet.sg website, with premium pricing dynamically pegged to the forecast.
This means people who buy Droplet nearer to days with rain forecast will likely pay a higher premium.
NTUC Income chief operating officer Peter Tay said: "We analysed the weather forecast over the last three months, as well as the probability of rain from each part of the island and time of day, so as to offer affordable and meaningful pricing for consumers."
Customers can make claims by forwarding receipts to Droplet within seven days of their ride.
Robotic process automation technology is used to verify each receipt and check that there was rain at the time and location of the booking.
The payout will be made via PayNow within three days from when the claim was submitted.
The insurance is available only for Grab for now but will be extended to other ride-hailing platforms by the end of the year.
Mr Ivan Guan, associate director at financial advisory PromiseLand Independent, said: "Initially there might be some hype, but in the long run it might be too much of a hassle for people to buy every time they want to travel on a rainy day."
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