Bike and Car Renting Laws in Jharkhand

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Posted on | by pritesh K

Renting a bike or car in Jharkhand involves adhering to specific policies, terms, and conditions to ensure a safe and lawful experience.

1. Eligibility Criteria

To rent a vehicle in Jharkhand, prospective renters must meet the following requirements:

  • Age Requirement: Renters must be at least 18 years old.
  • Driving License: A valid driving license appropriate for the vehicle category is mandatory.
    • For Indian Citizens: A driving license issued by any Regional Transport Office (RTO) in India.
    • For Foreign Nationals: An International Driving Permit (IDP) accompanied by the original driving license from the home country.

Step 1: Age Requirement

  • Renters must be at least 18 years old.
    • Proof Required: Age proof (e.g., birth certificate, government-issued ID).

Step 2: Driving License Requirement

  • Indian Citizens: Must have a valid driving license issued by any Regional Transport Office (RTO) in India.
    • Proof Required: Original driving license.
  • Foreign Nationals: Must have an International Driving Permit (IDP).
    • In addition to the IDP, foreign nationals must also carry their original driving license from their home country.
    • Proof Required: International Driving Permit and original foreign driving license.

2. Documents Required

Renters are required to present the following documents at the time of vehicle pickup:

Document TypeIndian CitizensForeign Nationals
Identification ProofAadhaar Card, Voter ID, Passport, or any government-issued IDPassport
Address ProofUtility Bill, Rental Agreement, or any official document stating current addressLocal residency proof
Driving LicenseOriginal driving license relevant to the vehicle categoryOriginal driving license and International Driving Permit (IDP)

For Indian Citizens:

  1. Identification Proof:
    • You need to present any one of the following:
      • Aadhaar Card
      • Voter ID
      • Passport
      • Any other government-issued ID
  2. Address Proof:
    • You must provide a document that proves your current address. Acceptable options include:
      • Utility Bill (such as electricity, water, etc.)
      • Rental Agreement
      • Any official document that states your current address
  3. Driving License:
    • The driving license you present must be original and should be relevant to the type of vehicle you are renting.

For Foreign Nationals:

  1. Identification Proof:
    • You must present a Passport as the identification proof.
  2. Address Proof:
    • You need to provide a document that verifies your local residency. This could be:
      • Local Residency Proof (such as a rental agreement or other official documents stating your residence in the area)
  3. Driving License:
    • You must provide the original driving license.
    • Additionally, you must present an International Driving Permit (IDP), which is necessary for driving in foreign countries.

3. Security Deposit

A refundable security deposit is collected to cover potential damages or violations.

  • Amount: Ranges from ₹1,000 to ₹2,000, depending on the vehicle model.
  • Payment Mode: Typically via credit card or cash.
  • Refund Process: Upon safe return of the vehicle without damages or violations, the deposit is refunded.

1. Security Deposit Collection

  • Purpose: The security deposit is collected to cover potential damages or violations that may occur during the rental period.

2. Deposit Amount

  • Range: The deposit amount varies between ₹1,000 and ₹2,000.
  • Variation: The amount is determined based on the vehicle model.
    • Example: A higher deposit might be required for premium or high-end vehicles.

3. Payment Mode

  • Accepted Methods: The security deposit can be paid either through:
    • Credit Card: Charged at the time of booking or upon pick-up of the vehicle.
    • Cash: Paid at the time of vehicle pick-up.

4. Refund Process

  • Conditions for Refund:
    • The vehicle must be returned in the same condition as it was rented, without any damages or violations.
  • Refund Timing:
    • The refund is processed after the vehicle is returned and inspected.
    • The amount is typically refunded within a few days to the original payment method (credit card) or in cash, depending on the mode of payment.

4. Fuel Policy

Understanding the fuel policy is crucial to avoid additional charges.

  • Full-to-Full: The vehicle is provided with a full tank and must be returned with a full tank. Failure to do so may result in refueling charges at premium rates.
  • Pre-Purchase Option: Some rental services offer an option to pre-purchase a full tank of fuel at a discounted rate, allowing the vehicle to be returned at any fuel level.

1. Full-to-Full Fuel Policy

  • Step 1: Vehicle Pickup
    • When you pick up the vehicle, it will have a full tank of fuel.
  • Step 2: Return the Vehicle
    • You must return the vehicle with a full tank of fuel.
  • Step 3: Failure to Refill
    • If you fail to return the vehicle with a full tank, the rental service will charge you for the missing fuel.
    • These charges are typically higher, as refueling at the rental location may come at a premium rate.

2. Pre-Purchase Fuel Option

  • Step 1: Offer at Pickup
    • Some rental services offer a pre-purchase fuel option where you can buy a full tank of fuel at a discounted rate at the start of your rental.
  • Step 2: Flexibility on Return Fuel Level
    • With this option, you are not required to return the vehicle with a full tank. You can return it at any fuel level without facing refueling charges.
  • Step 3: Cost Consideration
    • The pre-purchase price is generally lower than what you would pay if you returned the car with less fuel and had to pay for refueling at a higher rate.

Key Considerations:

  • Full-to-Full Policy: You are expected to refuel the vehicle before returning it.
  • Pre-Purchase Fuel Option: You pay in advance for a full tank and can return the vehicle with any fuel level without additional charges.

5. Usage Limitations

Renters must adhere to the following usage policies:

  • Geographical Limits: Vehicles are to be used within the permitted regions. For instance, certain rentals may restrict usage to specific areas like Sikkim, Darjeeling, the Dooars, Gangtok, and Bhutan.
  • Prohibited Activities: Using the vehicle for racing, towing, or any illegal activities is strictly forbidden.
  • Subleasing: Renting out the vehicle to another individual is not allowed.

1. Geographical Limits:

  • Policy: Vehicles can only be used within specific, permitted regions.
  • Examples of Permitted Areas:
    • Sikkim
    • Darjeeling
    • The Dooars
    • Gangtok
    • Bhutan
  • Note: Make sure the vehicle stays within the boundaries of these permitted regions, as exceeding them could lead to penalties.

2. Prohibited Activities:

  • Policy: Renters must avoid using the vehicle for any of the following:
    • Racing: Vehicles cannot be used for competitive speed events or any kind of racing.
    • Towing: Vehicles should not be used to tow other vehicles or objects.
    • Illegal Activities: Vehicles must not be involved in any illegal activities or unlawful actions.
  • Note: Violating these terms may lead to penalties or termination of the rental agreement.

3. Subleasing:

  • Policy: Renters are not allowed to sublease or rent the vehicle to anyone else.
  • Note: The vehicle should only be driven by the person who originally rented it. If another individual is found using the vehicle without prior approval, it could result in fines or other consequences.

6. Additional Charges

Renters may incur extra charges under certain circumstances:

  • Late Return Fee: Returning the vehicle beyond the agreed time may attract additional fees.
  • Damage Charges: Any damage to the vehicle not covered by insurance will be charged to the renter.
  • Traffic Violations: Fines resulting from traffic law violations during the rental period are the renter’s responsibility.

Late Return Fee:

  • What it is: A fee applied when the vehicle is returned later than the agreed time.
  • Why it happens: If the renter exceeds the agreed return time without prior notification or approval, the rental company may charge extra.
  • How it’s calculated: Charges are typically based on the hourly or daily rate, depending on how late the vehicle is returned.

Damage Charges:

  • What it is: Charges for any damage to the vehicle that isn’t covered by the insurance policy.
  • Why it happens: If the vehicle is damaged during the rental period due to an accident, misuse, or negligence, the renter will be responsible for the cost of repair.
  • How it’s calculated: Charges are based on the extent of the damage. This might involve a repair estimate or the full replacement cost if the vehicle is significantly damaged.

Traffic Violations:

  • What it is: Fines that result from traffic violations (e.g., speeding tickets, parking fines, running red lights) incurred during the rental period.
  • Why it happens: The renter is responsible for complying with local traffic laws. Any fines issued during the rental period must be settled by the renter.
  • How it’s calculated: The renter will be charged the full fine amount plus any administrative fees that the rental company may apply to process the fine.

7. Insurance and Liability

Understanding insurance coverage and liability is essential:

  • Basic Insurance: Most rentals include basic insurance covering third-party liabilities.
  • Collision Damage Waiver (CDW): An optional add-on that limits the renter’s financial responsibility in case of an accident.
  • Personal Accident Insurance: Provides coverage for medical expenses in the event of an accident.

1. Basic Insurance Coverage

  • What It Is: Basic insurance typically covers third-party liabilities. This means if you’re involved in an accident and the other party is at fault, their damages will be covered under the insurance.
  • What’s Covered:
    • Damage to other vehicles or property
    • Medical expenses for the other party (not you)
    • Injuries sustained by third parties (e.g., pedestrians)
  • What’s Not Covered:
    • Your own vehicle’s damage
    • Personal injuries
  • Important: Basic insurance may be included in the rental fee, but it’s always good to confirm with the rental provider.

2. Collision Damage Waiver (CDW)

  • What It Is: CDW is an optional add-on insurance that limits the renter’s financial responsibility for damages to the rental vehicle in case of an accident.
  • How It Works:
    • If you purchase CDW, you won’t be fully liable for the repair costs if the vehicle is damaged, but you may still have to pay an excess (deductible).
    • Without CDW, you are usually responsible for the full cost of the damage to the vehicle.
  • What’s Covered:
    • Repair costs for the rental vehicle after an accident (depending on the excess).
  • What’s Not Covered:
    • Damage due to negligence or reckless driving
    • Vehicle theft or vandalism (unless specifically stated in the policy)
  • Important: CDW doesn’t cover everything; check the terms to understand exclusions.

3. Personal Accident Insurance (PAI)

  • What It Is: PAI provides coverage for medical expenses in the event of an accident, ensuring that your medical bills are covered if you’re injured while driving or riding the rental vehicle.
  • How It Works:
    • The insurance helps pay for hospital and medical treatment costs that arise from an accident while using the rental vehicle.
    • Some rental companies automatically include this coverage, while others offer it as an optional add-on.
  • What’s Covered:
    • Medical expenses for injuries sustained in an accident
    • Possible coverage for passengers in the rental vehicle as well
  • What’s Not Covered:
    • Medical expenses that are not accident-related (like pre-existing conditions)
    • Injuries caused by reckless behavior or drug/alcohol use
  • Important: Check the policy to ensure the coverage limits and exclusions match your needs.

4. Exclusions and Limitations

  • Negligence: If the accident or damage happens due to negligent driving, such as driving under the influence or ignoring traffic laws, insurance coverage may be voided.
  • Unauthorized Drivers: If someone else (not listed on the rental agreement) drives the vehicle and an accident occurs, coverage may not apply.
  • Theft: Most basic insurances do not cover theft or vandalism, so additional coverage may be required to protect against those risks.

5. Confirming Insurance Details

  • Before Renting: Always confirm what insurance coverage is included and what’s optional. Ask the rental agency about the terms of any add-on insurances (CDW and PAI).
  • Check Your Credit Card: Sometimes, credit cards offer rental insurance coverage when you use the card to pay for the rental. Verify with your card provider if this applies to your rental.

6. Excess/ Deductible

  • What It Is: This is the amount you must pay out-of-pocket in the event of an accident or damage. For example, if the vehicle sustains 1,000 in damage and your deductible is 200, you would pay 200, and the insurance covers the rest.
  • Important: Deductibles can vary widely depending on the rental agency and the type of insurance.

8. Helmets and Safety Gear

For bike rentals, safety gear is mandatory:

  • Helmet Provision: One helmet is typically provided with the bike. Additional helmets may be available at extra cost.
  • Safety Compliance: Both rider and pillion are required to wear helmets at all times, adhering to safety regulations.

Step 1: Helmet Provision

  • One Helmet Included: When renting a bike, one helmet is generally provided as part of the rental package.
  • Extra Helmet Availability: If you need additional helmets (for a pillion rider or if you prefer more options), they may be available for rent at an extra cost. Confirm with the rental provider about availability and pricing.

Step 2: Safety Compliance

  • Rider’s Responsibility: The rider is required to wear a helmet at all times during the ride. This is essential for the rider’s safety and to comply with road safety laws.
  • Pillion Rider’s Responsibility: If you have a pillion (a person riding behind), they are also required to wear a helmet. This ensures that both the rider and the pillion are protected during the ride.
  • Legal Requirement: Wearing helmets is mandatory according to traffic safety regulations. Non-compliance can lead to fines or penalties.

Step 3: Helmet Quality and Condition

  • Helmet Condition Check: Before using the helmet, ensure it is in good condition with no visible damage, especially in the padding or shell, to ensure safety.
  • Comfort: Make sure the helmet fits properly and comfortably. Adjust the straps to ensure a snug fit without being too tight.

Step 4: Other Safety Gear (Optional)

  • Additional Gear: Depending on the rental provider, you might be able to rent other safety gear like knee pads, elbow pads, and gloves for added protection during the ride.
  • Clothing Considerations: Wear appropriate clothing for added safety, such as long pants and closed-toe shoes, which can reduce injury risk in case of an accident.

Step 5: Return of Gear

  • Return Conditions: After your ride, make sure to return the helmet and any other safety gear in the same condition you received it. You may be charged for any damages.

9. Payment Procedures

Payment policies vary among rental services:

  • Reservation Payment: Full payment is often required to confirm the reservation.
  • Accepted Payment Methods: Credit cards are commonly accepted; some services may accept debit cards or cash.
  • Security Deposit: A hold may be placed on the renter’s credit card for the security deposit amount.

1. Reservation Payment:

  • Full Payment Requirement:
    • When making a reservation, some rental services require full payment upfront to secure your booking. This ensures your reservation is confirmed, and the service is reserved specifically for you.
    • The payment may include any applicable taxes, fees, and insurance costs, depending on the rental service.

2. Accepted Payment Methods:

  • Credit Cards:
    • Most rental services accept credit cards as the primary payment method for reservations and payments.
    • Ensure your credit card has a sufficient balance or limit to cover the payment.
  • Debit Cards:
    • Some services also accept debit cards, but not all do. If they do, check if the debit card has enough funds and if there are any extra requirements (e.g., bank approval).
  • Cash (Less Common):
    • In some cases, rental services may accept cash, particularly for smaller, local businesses. However, credit/debit cards are more common for security and convenience.

3. Security Deposit:

  • Credit Card Hold:
    • When renting, rental services typically require a security deposit to cover potential damages or additional charges that might arise during the rental period.
    • This deposit is usually taken as a hold on your credit card, meaning the amount is reserved but not actually charged unless there’s an issue, like damage or missing items.
    • Once the rental is returned in good condition and the terms are met, the hold is released, and the amount is returned to your available credit balance.
  • Amount of the Deposit:
    • The amount for the security deposit can vary based on the type of rental (e.g., car, bike), duration, and rental service policies.

10. Taxes and Additional Fees

Be aware of applicable taxes and fees:

  • Goods and Services Tax (GST): Applicable as per government regulations on rental services.
  • Interstate Taxes: If planning to cross state borders, additional taxes may apply.
  • Toll and Parking Charges: These are typically the responsibility of the renter.

1. Goods and Services Tax (GST)

  • What It Is: GST is a tax levied by the government on goods and services, including rental services.
  • How It Applies:
    • When renting a bike or car, GST will be added to the rental cost.
    • The rate of GST may vary depending on the service (usually 18% for rental services in India).
  • Action: Ensure that GST is added to the total amount on the rental invoice.

2. Interstate Taxes

  • What It Is: Additional taxes that apply when renting a vehicle and crossing state borders.
  • How It Applies:
    • If the rental vehicle crosses state boundaries (i.e., travel between two or more states), the renter may incur extra charges like an interstate tax or a permit fee.
    • The fees depend on the states involved in the travel.
  • Action: If your rental plans include crossing state borders, check with the rental service to understand the additional fees.

3. Toll and Parking Charges

  • What It Is: Fees incurred for using toll roads and parking the rental vehicle.
  • How It Applies:
    • Toll Charges: When traveling through toll booths, toll charges will be applicable, and these are typically the responsibility of the renter.
    • Parking Charges: When parking the vehicle in public or private areas, parking charges (such as hourly rates or fixed fees) may apply.
  • Action: You will need to pay toll and parking charges directly as you encounter them, or some rental services may charge you later based on the usage.

4. Other Possible Additional Charges

  • Insurance: You may need to pay for optional insurance coverage to protect against damages or theft of the vehicle.
  • Fuel Charges: Some rental companies charge for fuel used during the rental period, or they may ask you to return the vehicle with a full tank.
  • Late Return Fees: If the vehicle is returned later than the agreed time, additional charges may apply.

11. Vehicle Return Policy

Adhering to the return policy ensures a smooth process:

  • Inspection: Upon return, the vehicle will be inspected for damages, fuel level, and overall condition.
  • Return Location: Vehicles should be returned to the agreed-upon location to avoid relocation fees.
  • Timing: Returning the vehicle on time prevents late fees and scheduling conflicts.

Inspection:

  • What it includes: The vehicle will be thoroughly inspected upon return. This includes checking for any damages, confirming the fuel level (it should be returned at the same fuel level as when it was rented), and assessing the overall condition of the vehicle.
  • Why it’s important: The inspection ensures that there are no discrepancies between the vehicle’s condition when it was rented and when it is returned.

Return Location:

  • What it includes: Vehicles must be returned to the specified location agreed upon during the rental process. If the vehicle is returned to a different location, additional relocation fees may apply.
  • Why it’s important: Returning the vehicle to the correct location ensures smooth operations and prevents unnecessary relocation costs.

Timing:

  • What it includes: Vehicles should be returned by the agreed-upon time to avoid late return fees. If the vehicle is returned later than the designated time, there may be additional charges or issues with scheduling.
  • Why it’s important: Returning the vehicle on time helps prevent late fees and avoids scheduling conflicts with other customers or vehicle availability.

12. Exclusions

Certain situations may not be covered under standard rental agreements:

  • Unauthorized Drivers: Individuals not listed in the rental agreement are prohibited from driving the vehicle.
  • Off-Road Usage: Using vehicles on unpaved or non-designated roads

Step 1: Unauthorized Drivers

  • Definition: The rental agreement specifies that only the individuals listed on the contract are allowed to drive the vehicle. Anyone not included on the list is an “unauthorized driver.”
  • Exclusion Clause:
    • Violation of Terms: If someone not listed in the agreement drives the vehicle, it violates the terms, leading to potential consequences.
    • Insurance Issues: In case of an accident or damage, the rental company’s insurance may not cover the situation if an unauthorized driver was behind the wheel.
  • Action:
    • Ensure the driver is explicitly listed in the rental agreement.
    • If someone else is to drive, update the agreement with their details, either beforehand or through an addendum.

Step 2: Off-Road Usage

  • Definition: Vehicles rented are usually intended for use on paved, public roads. Off-road refers to usage on unpaved or non-designated roads such as dirt tracks, trails, or rough terrains.
  • Exclusion Clause:
    • Damage to the Vehicle: Off-road driving can cause wear and tear or damage to the vehicle, which may not be covered under the rental agreement.
    • Potential Legal Consequences: Driving off-road may violate local laws or traffic regulations depending on the area.
    • Insurance Coverage: Off-road usage may not be covered by the rental insurance, meaning the renter may have to bear the costs for repairs or damages resulting from such use.
  • Action:
    • Stick to designated roads and avoid rough, non-paved areas unless explicitly allowed by the rental company.
    • If off-road usage is required, check with the rental company for special terms, permissions, or additional insurance coverage.

Additional Considerations:

  • Rental Agreement Review: Always review the full rental agreement to ensure no clauses regarding unauthorized driving or off-road usage are overlooked.
  • Liability and Penalties: Understand the penalties for violating the exclusions, as this can vary greatly from company to company, ranging from fines to full responsibility for damages.