Two policemen travelling in the jeep were also injured in the mishap that took place near Polavaram village in adjoining West Godavari district, said Deputy Superintendent of Police (DySP) J Venkata Rao.
The jeep was parked at Jangareddy Gudam Police Station and its officer in-charge had gone to West Godavari district on duty. Meanwhile, a home guard jawan and two policemen took the jeep and went to Polavaram without permission from higher officials, Rao said.
One of them Y Mangamma (75) died on the spot, while the other woman Devamma (80) suffered serious injuries and was shifted to a private hospital in Rajahmundry, he said.
Besides Rambabu, others in the jeep were Mohammed Ali, an Assistant Sub-Inspector, and P Sivakrishna, a Constable.
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Meanwhile, Deputy Chief Minister N Chinnarajappa visited the deceased woman's residence and announced a compensation of Rs 5 lakh to her family, officials said.
The Minister, who also holds the Home portfolio, recommended the jeep driver's suspension to West Godavari Superintendent of Police, they said.