Bike and Car Renting Laws in Bihar

Posted on February 20, 2025February 20, 2025 | by pritesh K

Table of Contents

1. Introduction

Bike and car rental services in Bihar have become increasingly popular, offering residents and tourists flexible transportation options. To maintain safety and compliance, rental companies enforce specific policies and guidelines.

1. Research and Identify Rental Companies

Identify available services: Start by identifying bike and car rental companies in Bihar. These services may be available in major cities like Patna, Gaya, Bhagalpur, and others.
Online Platforms: Use online platforms or apps like Motoshare to easily browse options and compare rental prices and vehicles.

2. Choose the Rental Type

Bike Rentals: These services may provide a range of bikes from scooters to motorcycles.
Car Rentals: Car rental services can include various types of vehicles like compact cars, sedans, and SUVs.
Hourly, Daily, or Weekly Rentals: Rental periods can vary depending on your travel needs.

3. Understand the Rental Policies

Eligibility Criteria:
- Age restrictions (usually 21+ for most rentals)
- Valid driver’s license required
- Some companies may ask for a security deposit.
Identification: Renters may need to provide ID proof (Aadhar card, passport, etc.).

4. Check Vehicle Condition and Inspection

Pre-Rental Inspection: Ensure the vehicle is inspected before renting, including checking fuel levels, tire condition, brakes, etc.
Insurance: Confirm whether the rental includes insurance coverage for accidents or damages.

5. Payment Terms and Rates

Rental Pricing: Prices vary depending on the vehicle type, rental duration, and additional services.
Advance Payment: Some companies may require an advance booking fee.
Late Fees: Be aware of penalties for late returns or damage to the vehicle.

6. Compliance and Safety Guidelines

Helmets for Bikes: Safety regulations require all bike riders to wear helmets.
Car Seatbelts: Passengers in cars must wear seatbelts as per traffic laws.
Traffic Laws: Renters should familiarize themselves with local traffic regulations in Bihar.

7. Driver’s License Verification

Driver’s License Check: A valid driver’s license is essential for renting a vehicle. Companies may also require an international driving permit if you are a foreign tourist.

8. Booking Process

Online or In-Person Booking: Depending on the company, you can either book a bike or car online or at the rental office.
Booking Confirmation: Ensure you receive a booking confirmation and details about your vehicle.

9. Return Policies

Return on Time: Ensure you return the vehicle by the agreed time to avoid extra charges.
Fuel Policy: Some companies may ask you to return the vehicle with the same fuel level as it was provided.

10. Customer Support

24/7 Support: Some rental services offer 24/7 support for emergencies like breakdowns or accidents.
Return Location: Confirm the return location and hours for the vehicle, especially if you are renting from different locations.

11. Post-Rental Review

Feedback: Many services encourage customers to leave reviews or feedback, which helps improve the service for future renters.

2. Eligibility Criteria

To rent a vehicle in Bihar, the following eligibility criteria are typically required:

Age Requirement: Minimum age of 18 years.
Driving License: A valid driving license appropriate for the vehicle type.
Identification Proof: Government-issued ID (e.g., Aadhar Card, Passport).

1. Age Requirement

Minimum Age: You must be at least 18 years old to rent a vehicle.
Age Verification: Ensure that you have a valid government ID to prove your age when renting the vehicle.

2. Driving License

Valid License: You must hold a valid driving license for the type of vehicle you wish to rent.
- For example, a two-wheeler license for motorcycles or scooters, and a four-wheeler license for cars or similar vehicles.
License Verification: Ensure your driving license is valid and not expired. You may need to show a physical copy or an online verification depending on the rental service provider.

3. Identification Proof

Required Documents: A government-issued identification document is required for verification.
- Common IDs: Aadhar Card, Passport, Voter ID, or any other official government ID that can verify your identity.
Proof of Residence: Some rental services may also ask for a proof of residence (like a utility bill or rental agreement) to confirm your local address.

4. Additional Documents (if required)

Security Deposit: Some rental agencies may require a security deposit or credit card authorization as a form of guarantee against damages.
Vehicle Usage Agreement: You will be asked to sign a rental agreement that outlines the terms of use, including insurance coverage and vehicle condition.

5. Payment Method

Mode of Payment: Most rental services accept payments via cash, debit, or credit cards. Some platforms may offer online payment methods too.
Pre-Authorization: If you’re paying by card, the agency might place a hold or pre-authorization on your card to cover potential damages or fines.

3. Documents Required

Renters must provide the following documents:

Driving License: Photocopy and original for verification.
ID Proof: Aadhar Card, Passport, or Voter ID.
Address Proof: Utility bills or rental agreement if the address is not on the ID proof.

1. Driving License

Photocopy: The renter must provide a photocopy of their valid driving license.
Original for Verification: The renter must present the original driving license for verification purposes.

2. ID Proof

Renters must provide one of the following as proof of identity:

Aadhar Card
Passport
Voter ID

3. Address Proof

Renters must provide one of the following as proof of their current address:

Utility Bills: A recent utility bill, such as electricity or water bill, showing the renter’s name and address.
Rental Agreement: If the address is not listed on the ID proof, a rental agreement will be accepted as proof of the renter’s address.

4. Rental Agreement

The rental agreement outlines the terms and conditions, including:

Rental Duration: Minimum and maximum rental periods.
Vehicle Condition: Inspection reports before and after rental.
Usage Limitations: Permissible areas of operation and mileage caps.

1. Rental Duration

Minimum Rental Period: Specify the minimum number of days a customer must rent the vehicle. (e.g., 1 day, 2 days)
Maximum Rental Period: Define the maximum number of days a vehicle can be rented. (e.g., 30 days, 60 days)
Extension Option: If applicable, explain how the rental period can be extended by the customer. Include any additional charges for extensions.

2. Vehicle Condition

Pre-Rental Inspection: Document the condition of the vehicle before handing it over to the customer. This should include:
- Photographs of the vehicle (exterior and interior)
- List of any pre-existing damage or issues.
Post-Rental Inspection: After the vehicle is returned, inspect it again and document its condition. Compare with the pre-rental inspection report.
Responsibility for Damage: Define the customer’s liability for any damages to the vehicle during the rental period, including repair costs.

3. Usage Limitations

Permissible Areas of Operation: Specify where the vehicle is allowed to be used (e.g., city, specific regions, or within certain borders).
Off-Road Use: Clarify whether off-road usage is allowed. If not, mention any penalties for violating this term.
Mileage Cap: Define a maximum mileage limit during the rental period (e.g., 200 km/day). If the customer exceeds the mileage, include the additional charges per km.
Geographical Restrictions: State if the vehicle can be taken out of state, country, or into certain locations (e.g., mountain regions, foreign countries). Specify any related fees for long-distance travel.

4. Additional Terms

Driver Requirements: Specify who is allowed to drive the vehicle, such as age restrictions, valid driving licenses, and experience.
Insurance: Include details about the insurance coverage for the vehicle, including the deductible and exclusions.
Fuel Policy: State whether the vehicle should be returned with a full tank of fuel, and what charges will apply if it isn’t.
Payment Terms: Outline rental charges, deposits, and late fees. Indicate accepted payment methods.

5. Termination & Cancellation

Early Termination: Define the conditions under which the rental agreement can be terminated early, and any penalties or fees involved.
Cancellation Policy: Include any terms related to cancellation by the customer or the company, and any fees that apply.

6. Customer Responsibilities

Maintenance & Care: Clearly state the customer’s responsibility for the vehicle’s basic maintenance during the rental period (e.g., checking oil, tire pressure).
Reporting Issues: Require the customer to immediately report any accidents, breakdowns, or damage to the vehicle.
Return Condition: Define the expected return condition of the vehicle (cleanliness, fuel level, etc.).

7. Signatures

Customer and Company Signatures: Include spaces for both the customer and company representatives to sign and date the rental agreement, acknowledging their understanding and agreement to the terms.

5. Payment Procedure

Payment-related details include:

Advance Payment: Full payment required before the rental period begins.
Security Deposit: Refundable deposit to cover potential damages or violations.
Payment Modes: Accepted methods such as credit/debit cards, UPI, or cash.

1. Advance Payment

Step 1: The customer must make the full payment before the rental period begins.
Step 2: The rental fee is paid in advance through the selected payment method (credit/debit card, UPI, or cash).
Step 3: Once the payment is processed, the customer will receive a confirmation of the booking, including rental details such as the vehicle type, rental period, and pick-up location.

2. Security Deposit

Step 1: A refundable security deposit is required to cover potential damages or violations during the rental period.
Step 2: The deposit amount will be specified at the time of booking and should be paid along with the advance payment.
Step 3: The security deposit is refunded to the customer once the vehicle is returned in the same condition, without damages or violations, and after checking the vehicle.

3. Payment Modes

Step 1: Customers can choose from the following payment methods:
- Credit/Debit Card: A secure online transaction can be made using a credit or debit card.
- UPI: Unified Payments Interface (UPI) allows for quick payments directly from bank accounts.
- Cash: Cash payments can be made at the rental location at the time of booking or vehicle pick-up.
Step 2: Select the preferred payment method during the booking process.
Step 3: Once the payment is completed, an invoice or receipt will be generated and sent to the customer.

6. Fuel Policy

Fuel-related policies are as follows:

Fuel Responsibility: Renters are responsible for fuel during the rental period.
Return Policy: Vehicle should be returned with the same fuel level as at the start.

1. Fuel Responsibility

Who is responsible? The renter is responsible for providing fuel during the rental period.
What is the expectation? The renter needs to ensure the vehicle has sufficient fuel for their use and top up as necessary during the rental period.

2. Return Policy

Same Fuel Level Requirement: The renter must return the vehicle with the same level of fuel as it was when they first received it.
Inspection: Upon returning the vehicle, an inspection will be conducted to confirm that the fuel level is identical to the one at the start of the rental.
Charges for Non-compliance: If the vehicle is returned with less fuel than it had at the start, the renter may incur an additional fuel charge, which is usually calculated based on the price of refueling the vehicle.

3. Additional Notes

Fuel Type: Make sure the vehicle is returned with the correct fuel type (petrol or diesel) as specified by the vehicle.
Refueling Options: Renters can choose to refill the vehicle at their own discretion or use the rental company’s refueling services, which may come with an extra charge.
Fuel Capacity: If the vehicle has a large fuel tank, it may be advised to refill at nearby stations rather than driving long distances without sufficient fuel.

7. Taxes and Additional Charges

Additional costs may include:

Interstate Taxes: Applicable if the vehicle is driven across state borders.
Parking Charges: Responsibility of the renter during the rental period.
Toll Taxes: To be borne by the renter as incurred.

1. Interstate Taxes

What it is: When a rental vehicle is driven across state borders, some states may impose an additional tax for interstate travel.
How it works: If you take the vehicle from one state to another, the rental company may charge a fee for crossing into a different tax jurisdiction.
Who pays: The renter is responsible for paying this tax.
Example: If you rent a car in Maharashtra and take it to Gujarat, the rental company might charge you an additional interstate tax for driving into Gujarat.

2. Parking Charges

What it is: This includes any costs for parking the rental vehicle during your rental period.
How it works: If you park the vehicle in a paid parking lot or face any fines for illegal parking, these charges are added to your rental bill.
Who pays: The renter is responsible for parking charges during the rental period.
Example: If you park your rental car in a paid parking space, you must cover the cost of parking. Likewise, if you receive a parking ticket for illegal parking, it will be your responsibility to pay the fine.

3. Toll Taxes

What it is: Toll taxes are fees charged to pass through toll booths on highways, bridges, and certain roads.
How it works: Whenever you drive on a toll road or cross a bridge that requires a fee, you will need to pay the toll.
Who pays: The renter is responsible for toll taxes as they incur them.
Example: If you are driving on a toll road or bridge, you will be charged the toll fee. The rental company may either bill you directly for the toll or ask you to pay at the time of rental return.

8. Inclusions and Exclusions

Understanding what is included or excluded in the rental package is crucial:

Inclusions: Basic insurance, one helmet for bike rentals, standard maintenance.
Exclusions: Fuel, fines for traffic violations, additional accessories.

1. Inclusions:

Basic Insurance:
- The rental includes basic insurance coverage for the bike. This typically covers damages that occur during the rental period, but may not cover personal injuries or damages caused by negligence.
Helmet:
- A standard helmet is included for bike rentals to ensure safety and compliance with local traffic laws. If the customer wants additional safety gear, it could be charged as an extra.
Standard Maintenance:
- The bike rental includes regular maintenance of the vehicle to ensure it is in good working condition during the rental period. This includes checking the tire pressure, oil, brakes, and general functioning of the bike.

2. Exclusions:

Fuel:
- Fuel is not included in the rental package. The customer is responsible for refueling the bike before returning it.
Fines for Traffic Violations:
- Any fines or penalties incurred due to traffic violations, parking violations, or other legal issues during the rental period are the responsibility of the customer.
Additional Accessories:
- Accessories such as extra helmets, knee guards, elbow pads, phone mounts, or other optional items are not included. If the customer requires them, they can be rented for an additional fee.

9. Mechanical Warranty and Maintenance

Policies regarding vehicle maintenance include:

Regular Maintenance: Handled by the rental company.
Breakdowns: Immediate reporting required; the company may provide assistance or a replacement vehicle.

1. Regular Maintenance

Responsibility: The rental company takes care of regular maintenance of the vehicles.

Scheduled Service: The company ensures that the vehicle undergoes routine check-ups (engine, oil, brakes, tires, etc.) at regular intervals.
Inspection Reports: The rental company should provide inspection reports and maintenance logs for the vehicle.
Preventive Maintenance: Periodic checks on important vehicle systems to avoid breakdowns during rental.

2. Breakdowns

Reporting and Assistance:

Immediate Reporting: If a vehicle breaks down during the rental period, the renter must immediately contact the rental company.
- Phone Number: A dedicated breakdown helpline number will be provided at the time of the rental.
- Location Details: Include exact location of breakdown for quicker response.
- Time of Breakdown: Report when and where the breakdown occurred.
Replacement Vehicle: The rental company may provide a replacement vehicle, depending on the situation.
- Availability: Ensure the availability of a replacement vehicle based on the type of rental and the area.

3. Vehicle Maintenance During Rental

Preventive Actions for Renters:

Check Fluid Levels: Renters should check and top up fluids (oil, coolant, brake fluid) when necessary, especially for long trips.
Tire Pressure: Keep tire pressure in check as part of basic vehicle care.
Fuel: Make sure the vehicle is fueled according to the agreed-upon terms of the rental.

4. Breakdown Procedure:

Contact Customer Support: Reach out to customer service immediately to report a breakdown.
Provide Details: Provide vehicle number, breakdown location, and time.
Follow Instructions: Customer support will guide the renter regarding next steps, whether that’s waiting for assistance or proceeding to a nearby location for further help.

5. Emergency Services:

24/7 Assistance: Availability of emergency roadside assistance is usually included, which may cover:

Towing services
Battery jump-starting
Flat tire repairs
Fuel delivery (if the vehicle runs out of fuel)

6. Warranty Coverage:

Mechanical Issues Covered:

Warranty Period: Ensure the vehicle has a valid warranty covering major mechanical components.
Exclusions: Some damages, such as those caused by negligence (e.g., accidents, misuse, or ignoring maintenance checks), may not be covered by the warranty.

7. Rental Duration and Coverage:

Maintenance Coverage Period: The rental maintenance coverage may extend to the rental period only.
Final Checks Upon Return: Upon return, the vehicle will undergo a final check, and renters should be aware of any charges if the vehicle is returned with damages due to neglect during maintenance.

10. Return Policy

Guidelines for returning the vehicle:

Timely Return: Vehicle must be returned at the agreed-upon time to avoid late fees.
Condition: Should be in the same condition as at the start of the rental, barring normal wear and tear.

1. Timely Return:

Return Time: Ensure the vehicle is returned at the specified date and time in the rental agreement.
Late Fees: If the vehicle is returned late, additional late fees will be charged based on the hourly or daily rate specified in the agreement.

2. Condition of the Vehicle:

Cleanliness: The vehicle should be clean when returned. Any excess dirt or damage may incur additional cleaning charges.
Fuel Level: Make sure the fuel level matches what it was at the time of pickup, unless the rental agreement specifies otherwise.
Tires and Exterior: Ensure that tires are in good condition and that there is no major damage to the exterior.
Interior Condition: The interior of the vehicle should be free from personal items, trash, or any noticeable damage.
Normal Wear and Tear: Normal wear and tear from typical usage is acceptable. However, any damage beyond this (such as dents, scratches, or broken parts) will need to be reported and may result in additional charges.

3. Inspection at Return:

Inspection Process: Once the vehicle is returned, it will be inspected by the rental company to assess its condition.
Damage or Missing Items: If the vehicle has any damage, missing parts, or other issues, you may be charged for repairs or replacement.

4. Documentation:

Return Acknowledgment: Ensure you receive a return receipt or acknowledgment from the rental company, noting the condition of the vehicle upon return.
Refund/Charge: Any additional charges or refunds for fuel, cleaning, or late fees will be processed and documented.

5. Return Location:

Return Location: Follow the instructions on where and how to return the vehicle, whether at a physical location or a designated drop-off point.

11. Renter’s Liability

Renters are liable for:

Traffic Violations: Any fines or penalties incurred during the rental period.
Damages: Costs for any damage to the vehicle not covered by insurance.

1. Traffic Violations

Responsibility for Fines: The renter is responsible for any fines, penalties, or legal consequences that arise from traffic violations during the rental period.
Types of Violations: These can include:
- Speeding tickets
- Parking tickets
- Running red lights
- Illegal U-turns
- Any other traffic-related offenses.
Notification of Violations: The renter must typically pay these fines directly. If the violation is recorded during the rental period, the rental company may charge the renter for the fine.
Reporting to Authorities: In some cases, if the violation is serious, the rental company may be obligated to report the incident to local authorities, which could impact the renter’s driving record.

2. Damages to the Vehicle

Non-Insurance Damages: Renters are responsible for any damage to the vehicle that is not covered by the insurance policy, including damages caused by accidents, vandalism, or collisions.
Damage Types: These can include scratches, dents, tire damage, windshield cracks, or major accidents.
Inspection of Vehicle: Upon renting the vehicle, both the renter and rental company typically conduct an inspection of the vehicle to document its condition. This helps avoid disputes over damage that may have occurred prior to or during the rental period.
Payment for Damages: If the vehicle is returned with any damage, the renter is typically required to pay the repair costs. If the damage is not immediately identified, the rental company may send an invoice later, which the renter is liable to pay.
Deductible: If the renter has opted for insurance coverage, they may be responsible for paying a deductible amount for the damage before insurance kicks in.

3. Insurance Coverage

Insurance Options: Renters are usually given the option to purchase additional insurance (collision damage waiver, theft protection, etc.) to protect against certain types of damages and reduce liability.
Liability Coverage: In some cases, renters may already have coverage through their personal car insurance or credit card benefits. However, the level of coverage can vary, and renters should verify their coverage before renting.
Uncovered Damages: In the case where a renter opts out of additional insurance or their existing insurance doesn’t cover certain damages, the renter will be directly liable for the costs of repair, replacement, or loss.

4. Loss of Vehicle

Theft: If the vehicle is stolen, the renter is typically liable for the full cost of the vehicle unless covered by insurance.
Loss Due to Negligence: If the vehicle is lost or damaged due to negligence, the renter will be held fully responsible for the costs.

5. Contractual Agreements

Signed Agreement: The rental company will generally outline the renter’s liability in the rental agreement. It is crucial for the renter to read and understand the terms, including their financial responsibility in case of traffic violations or damages.
Rental Return Terms: The renter should return the vehicle in the same condition as it was rented out, minus normal wear and tear. Failure to do so may result in charges for cleaning or repairs.

6. Special Circumstances

Off-Road Driving: If the renter takes the vehicle off-road or engages in reckless driving, they could be liable for damages or loss, as most rental agreements prohibit such activities.
Subletting the Vehicle: Renters are typically prohibited from subletting or loaning the vehicle to someone else. If someone else drives the vehicle and causes damage or violates traffic laws, the renter remains liable.

12. GST Rates for Vehicle Rental Services

Goods and Services Tax (GST) is applicable as follows:

GST Rate: Typically 18% on the rental charges.
Reverse Charge Mechanism (RCM): Applicable in certain scenarios, such as when services are provided by a non-body corporate to a body corporate.

1. GST Rate on Vehicle Rental Services

Standard Rate: Vehicle rental services generally attract a GST rate of 18% on the rental charges.
Applicability: This rate is applicable for renting vehicles like cars, bikes, etc., for both commercial and personal use.

2. Reverse Charge Mechanism (RCM)

What is Reverse Charge Mechanism?
- Reverse charge means the recipient of the service is liable to pay GST instead of the service provider.
When is RCM applicable?
- RCM is applicable when services are provided by a non-body corporate (individuals, partnerships, etc.) to a body corporate (companies or other corporate entities).
- In such cases, the body corporate (recipient of the service) has to pay the GST instead of the service provider (who is a non-body corporate).

3. Exceptions

Non-Applicability of RCM: If the service provider is also a body corporate or is registered with GST, the reverse charge mechanism would not apply. The regular 18% GST would apply directly.

4. Impact on Small Service Providers

GST Registration: If the annual turnover from vehicle rental services exceeds Rs. 20 lakhs (Rs. 10 lakhs for special category states), the service provider is required to register under GST and charge 18% GST on the rental charges.
Small Renters: Those who have a turnover below the prescribed threshold can either remain unregistered or opt for a composition scheme, which simplifies GST compliance but limits tax credits.

5. GST on Additional Charges

Any extra charges (e.g., fuel, insurance, driver charges) on top of the basic rental charges would also attract 18% GST, as these are considered part of the vehicle rental service.

6. Input Tax Credit (ITC)

For Businesses: Businesses who are GST registered can claim Input Tax Credit (ITC) for the 18% GST paid on vehicle rental charges. This means they can offset the GST paid on vehicle rentals against the GST collected on their own sales/services.
For Non-Business Consumers: Individuals renting vehicles for personal use cannot claim ITC.

7. Rental Period and GST Calculation

Monthly or Long-Term Rentals: For vehicle rentals provided for longer periods (like monthly or yearly rentals), GST is charged at 18% on the total rental amount.
Daily or Short-Term Rentals: For daily rentals, GST will be calculated on the daily rental charge.

8. Filing GST Returns

Businesses offering vehicle rental services need to file GST returns regularly, typically on a monthly or quarterly basis, to report the rental income and the GST collected.

13. Prohibited Uses

Renters must not use the vehicle for:

Commercial Purposes: Unless explicitly permitted.
Illegal Activities: Any unlawful acts or purposes.
Subleasing: Renting out the vehicle to another party.

1. Commercial Purposes

Renters are not allowed to use the vehicle for commercial activities unless explicitly permitted.
This includes using the vehicle for business purposes, such as transporting goods, passengers, or engaging in other forms of income-generating activities.

2. Illegal Activities

The vehicle must not be used for any illegal activities or purposes.
This includes, but is not limited to:
- Engaging in criminal acts.
- Using the vehicle to transport illegal substances or engage in unlawful activities.
Renters should ensure they comply with all laws and regulations during the rental period.

3. Subleasing

Renters are prohibited from subleasing the vehicle to another party.
This means renters cannot rent out the vehicle to someone else or let someone else use it under their rental agreement.
The vehicle should only be used by the renter, and any additional users must be explicitly authorized, depending on the rental terms.

14. Insurance and Liability

Insurance coverage details:

Coverage: Basic insurance may be included; comprehensive coverage might be available at an extra cost.
Claims: Procedures to follow in case of an accident or damage.

1. Coverage Details

Basic Insurance Coverage:
- Typically, basic insurance is included in the rental price.
- Covers minimal damages like theft or damage to the bike under specified conditions.
- May include third-party liability in case of accidents causing damage to others or their property.
Comprehensive Coverage (Optional):
- Available at an additional cost, offering broader coverage.
- Includes coverage for theft, accidents, and damages regardless of fault.
- Some policies may cover injuries and other costs like emergency assistance or towing.
- Coverage terms may vary based on the insurance provider.

2. Claims Process

Accident or Damage Claim Procedure:
- Step 1: Report the incident immediately to the rental company.
  - Provide all relevant information about the accident or damage (e.g., photos, location, circumstances).
- Step 2: File a police report (if required by law) for theft, accidents, or damage involving third parties.
- Step 3: Notify the insurance provider.
  - Provide the rental company and insurance provider with all necessary documents, including the police report (if applicable).
- Step 4: Document the condition of the bike after the incident.
  - Take photos of any damage to the bike or surrounding areas.
- Step 5: Follow the rental company’s instructions to repair or replace the bike (if applicable).
- Step 6: Settle any remaining financial obligations (e.g., deductible or repair costs) if the claim is approved.

3. Exclusions in Insurance

Many rental insurance policies do not cover:
- Riding under the influence of alcohol or drugs.
- Damage caused by misuse or intentional actions.
- Non-accidental damage, such as poor maintenance.
- Riding in restricted areas (off-road, racing, etc.).

4. Excess and Deductibles

Excess (or Deductible):
- A fee that the renter may have to pay out of pocket before the insurance covers the remaining cost.
- This could be charged in the event of an accident, theft, or damage.
- Can vary depending on the insurance provider and the terms of the rental agreement.
- You may have the option to reduce the excess fee by paying extra for a lower deductible at the time of booking.

5. Liability of the Renter

The renter is typically liable for:
- Any damages to the bike not covered by the insurance policy.
- Injury or harm to others or third-party property not covered under the policy.
It’s essential for renters to be aware of their responsibilities under the insurance policy and rental agreement.

6. Special Insurance Policies

Some rental services may offer damage waivers or collision damage waivers (CDW) as an additional option:
- Damage Waiver: Reduces or eliminates the renter’s responsibility for damage to the vehicle, subject to certain terms.
- Collision Damage Waiver (CDW): Reduces the renter’s liability for any damage to the vehicle in case of a collision.

15. Dispute Resolution

In case of disputes:

Arbitration: Many agreements include an arbitration clause for resolving conflicts.
Legal Jurisdiction: Typically, disputes are subject to the jurisdiction of courts in the city where the rental company is based.

1. Dispute Notification

Step 1: The party seeking resolution of a dispute (e.g., customer or company) must notify the other party in writing about the issue or conflict.
Step 2: Both parties should attempt to resolve the matter through direct negotiation, in good faith, to avoid formal procedures.

2. Arbitration Clause

Step 3: If the dispute cannot be resolved through negotiation, and the agreement includes an arbitration clause, the parties must enter into arbitration.
Step 4: The arbitration clause will specify:
- Arbitrator Selection: How the arbitrator will be selected (e.g., by mutual agreement, or by an arbitration organization).
- Arbitration Process: The procedural rules that the arbitration will follow, such as where it will take place, and how evidence will be handled.
- Binding Decision: Arbitration decisions are usually binding, meaning the parties must accept the decision of the arbitrator(s).

3. Venue of Arbitration

Step 5: The agreement should specify where the arbitration will take place (for example, the city or country). This will determine which laws and arbitration rules apply.
Step 6: If no venue is specified, the parties may agree on a location together, or the arbitrator may make a determination based on the relevant facts.

4. Legal Jurisdiction

Step 7: If the arbitration is unsuccessful or if the agreement does not include an arbitration clause, the dispute may be escalated to the legal system.
Step 8: Legal jurisdiction refers to the authority of the courts in a particular region to handle legal matters. It is important for the agreement to specify:
- Jurisdiction Location: The city or state where legal disputes will be handled.
- Choice of Law: Which laws will govern the dispute (local or international).
Step 9: Both parties must agree in advance to this jurisdiction, which can affect the convenience, cost, and duration of legal proceedings.

5. Resolution Outcome

Step 10: Once the arbitration or legal proceedings are concluded, a final decision will be issued.
- Arbitration: The arbitrator(s) will issue a binding award that the parties must follow.
- Legal Proceeding: If the matter goes to court, the judge will issue a ruling based on the relevant legal principles.

6. Enforcement

Step 11: Both parties are responsible for abiding by the ruling made by the arbitrator or court. If necessary, enforcement actions (like garnishments or asset seizure) may be initiated to comply with the decision.

16. Additional Considerations

Other important points:

Helmets for Bike Rentals: One helmet is usually provided; a second helmet may be available upon request.
Accessories: Additional accessories like GPS devices may be available at extra cost.

Helmet Availability:

One helmet is provided with each bike rental.
A second helmet is available upon request, depending on availability.

Additional Accessories:

GPS devices can be rented as an additional accessory.
The GPS device comes at an extra cost.

17. Sample Table: Charges Overview

Below is a sample table outlining potential charges:

| Charge Type | Description | Amount/Fee

Step 1: Define Charge Types

List all the possible charge types that would be relevant for your scenario. For example:

Base Charge: The standard fee for a service or product.
Additional Accessories: Charges for extra items or services like helmets, GPS devices, etc.
Insurance Fee: A fee for insuring the item or service being rented.
Late Fee: Charges incurred when the item is returned late.

Step 2: Write Descriptions

For each charge type, provide a brief description of what it entails. For example:

Base Charge: This is the initial or standard cost for renting the bike or car.
Additional Accessories: This charge applies to any extra items like additional helmets, GPS, etc., that are requested by the renter.
Insurance Fee: This is a fee to cover any damages or loss during the rental period.
Late Fee: This charge applies if the item is returned after the agreed-upon time.

Step 3: Define Amount/Fee

Specify the amount or fee associated with each charge. For example:

Base Charge: ₹500 per day
Additional Accessories: ₹100 for an extra helmet, ₹200 for a GPS device
Insurance Fee: ₹50 per day
Late Fee: ₹100 per hour

Step 4: Create the Table

You can now create a table using the format provided:

Charge Type	Description	Amount/Fee
Base Charge	Standard fee for renting the bike or car	₹500 per day
Additional Accessories	Charges for extra items like helmets, GPS, etc.	₹100 per helmet, ₹200 for GPS
Insurance Fee	Fee for insuring the rented item	₹50 per day
Late Fee	Charge for late returns of rented items	₹100 per hour

Step 5: Final Adjustments

Ensure that the table is complete with accurate details based on your pricing strategy. Adjust the descriptions and amounts according to your business model.