Bike and Car Renting Laws in Andaman & Nicobar

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Table of Contents

1. Policy Overview

The Government of Andaman & Nicobar has laid out regulations to ensure a safe and hassle-free bike and car rental experience for both tourists and locals. These policies are designed to promote responsible renting practices while protecting the rights of renters and service providers.

1. Licensing & Eligibility

  • Age Requirement: Renters must be at least 18 years old for bikes and 21 years old for cars.
  • Driving License: A valid Indian driving license (for locals) or an International Driving Permit (IDP) (for foreign tourists) is mandatory.
  • Identity Proof: Aadhar card, passport, or any government-issued ID is required for verification.
  • Security Deposit: Some rental companies may require a refundable security deposit.

2. Rental Agreement & Documentation

  • Rental Contract: Renters must sign an agreement outlining the rental duration, charges, and terms of use.
  • Insurance Policy: Vehicles should be insured; renters should check for coverage details (accidents, theft, third-party liabilities).
  • Condition Checklist: Renters should inspect the vehicle for any damages before taking possession and document any issues.

3. Pricing & Payment

  • Rental Charges: Rates vary based on vehicle type, duration, and season. Some providers offer hourly, daily, or weekly plans.
  • Fuel Policy: Most rentals follow a “same-to-same” fuel policy, meaning renters must return the vehicle with the same fuel level as when rented.
  • Late Return Fees: Delays in returning the vehicle may incur additional charges.
  • Payment Mode: Online payment, cash, or card transactions are accepted by most service providers.

4. Safety & Traffic Rules Compliance

  • Helmet & Seatbelt Rules: Helmets are mandatory for bike riders, and seatbelts must be worn in cars at all times.
  • Drunken Driving: Strictly prohibited. Heavy fines and penalties apply if caught.
  • Speed Limits & Road Safety: Renters must adhere to local traffic regulations, including speed limits.
  • No Off-Roading: Many rental agreements prohibit off-roading or taking the vehicle beyond designated areas.

5. Vehicle Restrictions & Usage Rules

  • Permitted Areas: Some rentals restrict vehicle use to specific zones (e.g., Port Blair, Havelock, or Neil Island).
  • No Sub-Letting: Renters cannot transfer the vehicle to another person without the rental company’s consent.
  • Breakdown & Assistance: Rental agencies usually offer roadside assistance for mechanical failures.

6. Damage & Liability

  • Damage Charges: Any damage to the vehicle beyond normal wear and tear is chargeable.
  • Insurance Coverage: Renters should clarify the extent of coverage and liability for accidents or third-party damages.
  • Lost Items: The rental company is not responsible for personal belongings left inside the vehicle.

7. Cancellation & Refunds

  • Cancellation Policy: Some companies offer free cancellations up to a certain time before the booking, while others may charge a fee.
  • Refund Process: Refunds for security deposits and cancellations depend on company policies.

2. Terms and Conditions

ClauseDetails
Rental PeriodMinimum 24 hours. Early return may not result in any refund.
Fuel PolicyThe vehicle is provided with a full tank; the renter must return it with a full tank unless stated otherwise.
Usage RestrictionsThe vehicle must not be used for racing, illegal activities, or driving under the influence.
Late Return FeesApplicable beyond the agreed return time, charged hourly.
Riding License ValidityMust have a valid Indian or International Driving License.

3. Eligibility Criteria

RequirementDetails
AgeMinimum age of 18 for bikes and 21 for cars.
LicenseValid Indian or International Driving License.
ID ProofAadhar Card, Passport, or Voter ID for Indian citizens; Passport for international tourists.
Credit Card/Debit CardRequired for the security deposit.

1. Age Requirement

  • Bikes: Minimum age requirement is 18 years.
  • Cars: Minimum age requirement is 21 years.

2. Driving License

  • A valid Indian or International Driving License is mandatory.
  • The license must be up to date and legally permitted for the type of vehicle being rented.

3. ID Proof (For Identity Verification)

  • Indian Citizens: Any one of the following is required:
    • Aadhar Card
    • Passport
    • Voter ID
  • International Tourists:
    • Passport is the only accepted ID proof.

4. Payment Requirement

  • A Credit Card or Debit Card is required for the security deposit before renting a vehicle.
  • The deposit amount may vary based on the vehicle type and rental policy.

4. Documents Required

  1. For Indian Nationals:
    • Driving License (Two-wheeler or Four-wheeler)
    • Aadhar Card/Passport/Voter ID
    • Recent Passport-sized Photo
  2. For International Tourists:
    • International Driving Permit (IDP)
    • Passport
    • Visa Copy

For Indian Nationals:

  1. Driving License (Two-wheeler or Four-wheeler)
    • A valid driving license is mandatory for renting a vehicle.
    • The license should be issued by the Regional Transport Office (RTO) in India.
    • It must cover the appropriate category of vehicle (e.g., a motorcycle license for a two-wheeler, LMV for a car).
    • The license must not be expired.
  2. Aadhar Card / Passport / Voter ID
    • Any one of these documents is required as proof of identity and residence.
    • Aadhar Card: A widely accepted ID proof issued by the Government of India.
    • Passport: Required if additional verification is needed.
    • Voter ID: Can also be used for identity verification.
  3. Recent Passport-sized Photo
    • Some rental agencies require a passport-sized photograph for documentation.
    • It is usually attached to the rental agreement or application form.

For International Tourists:

  1. International Driving Permit (IDP)
    • An International Driving Permit (IDP) is required to legally ride or drive in India.
    • It must be valid and cover the appropriate category of vehicle.
    • Tourists must carry both their home country’s driving license and the IDP.
  2. Passport
    • A valid passport is required as proof of identity.
    • The passport should be valid for at least six months from the rental date.
  3. Visa Copy
    • A valid visa copy is required to confirm the length of stay in India.
    • It should match the duration of vehicle rental to avoid legal issues.

5. Rental Agreement Terms

  1. Scope of Use:
    The vehicle is to be used only in the Andaman & Nicobar region unless written permission for interstate travel is granted.
  2. Insurance:
    The vehicle comes with basic third-party insurance. Personal accident insurance can be added at an extra cost.
  3. Security Deposit:
    Refundable after vehicle inspection at the time of return. Damages or late returns will be deducted from the deposit.
  4. Prohibited Activities:
    • Subletting the vehicle
    • Using the vehicle for commercial purposes
    • Driving under the influence of alcohol/drugs

1. Scope of Use

  • The rented vehicle is strictly to be used within the Andaman & Nicobar region.
  • If the renter wishes to travel outside this region (interstate travel), written permission from the rental provider is required.
  • Unauthorized interstate travel may result in penalties or termination of the rental agreement.

2. Insurance

  • The vehicle comes with basic third-party insurance, which covers damages to third-party persons or property in case of an accident.
  • This insurance does not cover personal injuries to the renter or damages to the rental vehicle itself.
  • Optional Personal Accident Insurance:
    • The renter can add personal accident insurance for an additional cost.
    • This will cover medical expenses or compensation in case of an accident involving the renter.

3. Security Deposit

  • A refundable security deposit must be paid before taking the vehicle.
  • The deposit will be returned after the vehicle passes an inspection at the time of return.
  • If there are damages to the vehicle or a late return, the rental company will deduct the appropriate amount from the deposit.

4. Prohibited Activities

The renter must not engage in the following activities while using the vehicle:

  • Subletting the vehicle:
    • The renter cannot rent or lend the vehicle to someone else.
    • Any unauthorized transfer of the vehicle will lead to contract termination.
  • Using the vehicle for commercial purposes:
    • The vehicle must only be used for personal use.
    • Taxi services, delivery, or goods transportation are not allowed unless explicitly permitted by the rental company.
  • Driving under the influence of alcohol or drugs:
    • The renter must not drive the vehicle if under the influence of alcohol, drugs, or any intoxicating substances.
    • Any such act violates the rental agreement and could lead to legal action and insurance claim rejection.

6. Charges and Cost Breakdown

Fuel Cost

Fuel charges are not included in the rental fee and must be borne by the renter.

Interstate Taxes & Permits

  • Applicable only if the vehicle is taken outside Andaman & Nicobar.
  • Interstate permits must be obtained by the renter.

Parking Charges and Toll Taxes

Renter is responsible for all parking fees and toll taxes during the rental period.

Type of ChargeResponsibilityNotes
Fuel CostRenterPay as per actual usage
Parking FeesRenterApplicable at public/private parking lots
Toll TaxesRenterPayable at toll plazas
Interstate TaxesRenterRequired if traveling to another state

1. Fuel Cost

  • Responsibility: Renter
  • Details: Fuel charges are not included in the rental fee. The renter is responsible for refueling the vehicle based on actual usage.
  • Payment Method: Direct payment at fuel stations as per consumption.

2. Interstate Taxes & Permits

  • Responsibility: Renter
  • Details:
    • Applicable only if the vehicle is taken outside Andaman & Nicobar.
    • The renter must obtain any necessary interstate permits before crossing state borders.
  • Payment Method: Fees to be paid at the respective state’s transport authority or checkpoints.

3. Parking Charges

  • Responsibility: Renter
  • Details:
    • Applicable at both public and private parking areas.
    • The renter is required to pay parking fees wherever necessary during the rental period.
  • Payment Method: Direct payment at parking locations.

4. Toll Taxes

  • Responsibility: Renter
  • Details:
    • Applicable at all toll plazas encountered during the journey.
    • Charges vary based on vehicle type and toll policies of the respective roads/highways.
  • Payment Method: Payable at toll booths or via FASTag (if applicable).

5. Interstate Taxes

  • Responsibility: Renter
  • Details:
    • If traveling to another state, the renter must pay the applicable interstate tax as per the destination state’s regulations.
  • Payment Method: Payment at border checkposts or online (where applicable).

7. Inclusions and Exclusions

InclusionsExclusions
One helmet (for bike rentals)Fuel cost
Basic insurancePersonal accident insurance
24/7 Roadside assistanceDamage to tires and accessories
Vehicle maintenanceFines for traffic violations

Inclusions (What’s Covered)

  1. One Helmet (for bike rentals) – A standard helmet is provided for safety when renting a bike.
  2. Basic Insurance – The rental includes basic insurance coverage, which may cover third-party liabilities and minor damages (depending on the policy).
  3. 24/7 Roadside Assistance – Assistance is available in case of breakdowns, mechanical failures, or other emergencies while using the vehicle.
  4. Vehicle Maintenance – Routine maintenance and servicing of the rented vehicle are included, ensuring it remains in good condition during the rental period.

Exclusions (What’s Not Covered)

  1. Fuel Cost – The renter is responsible for refueling the vehicle; fuel expenses are not covered in the rental price.
  2. Personal Accident Insurance – Insurance covering injuries or medical expenses for the rider/driver is not included and must be purchased separately.
  3. Damage to Tires and Accessories – Repairs or replacements for tire punctures, damaged mirrors, or other vehicle accessories are not covered under the rental agreement.
  4. Fines for Traffic Violations – Any fines, penalties, or legal fees incurred due to traffic violations (e.g., overspeeding, parking tickets) are the renter’s responsibility.

8. Mechanical Warranty

The rental service ensures the vehicle is in good mechanical condition. If there are any mechanical issues not caused by the renter’s negligence, repairs will be covered by the rental agency.

1. Good Mechanical Condition

  • The rental agency ensures that the vehicle is in proper working order and free of mechanical defects at the time of rental.
  • Vehicles are maintained according to the manufacturer’s standards to ensure they are safe and reliable.

2. Coverage for Repairs

  • If the vehicle experiences mechanical issues during the rental period, and the issues are not caused by the renter (e.g., accidents, improper use, or lack of maintenance), the rental agency will cover the repair costs.
  • The renter is not responsible for the costs of repairs for problems that arise due to normal wear and tear or factory defects.

3. Exclusions for Renter Negligence

  • The warranty does not cover mechanical issues resulting from actions that violate the terms of the rental agreement, such as:
    • Overloading the vehicle
    • Driving in harsh conditions beyond the vehicle’s specifications
    • Failure to follow the vehicle’s maintenance instructions (e.g., ignoring warning lights, improper fluid levels)

4. Repair Process

  • In the event of a mechanical issue, the renter should notify the rental agency immediately.
  • The rental agency may either repair the vehicle at an authorized service center or offer a replacement vehicle, depending on the severity of the issue.

5. Replacement Vehicle

  • If the vehicle cannot be repaired in a timely manner, the rental agency may provide a replacement vehicle, especially if the rental period is affected.

9. Renter’s Liability

The renter is liable for:

  • Any physical damage to the vehicle not covered by insurance.
  • Loss of accessories like helmets, mirrors, etc.
  • Traffic violations and fines during the rental period.

Physical Damage to the Vehicle (Not Covered by Insurance)

  • If the renter causes damage to the vehicle due to an accident, negligence, or misuse, they are responsible for repair costs unless covered by the rental company’s insurance.
  • Common damages include scratches, dents, broken parts, and engine damage due to improper use.
  • If the renter violates the rental agreement (e.g., drunk driving, off-roading when not allowed), insurance may not cover damages, making the renter fully liable.

Loss of Accessories (Helmets, Mirrors, etc.)

  • If any accessories provided with the rental vehicle (such as helmets, mirrors, toolkits, GPS devices, locks, or keys) are lost or damaged, the renter must pay for replacements.
  • Some companies may charge a fixed fee for lost accessories, while others may require the renter to buy a replacement themselves.

Traffic Violations and Fines

  • The renter is responsible for any traffic violations committed during the rental period, including speeding, parking tickets, signal violations, and illegal driving maneuvers.
  • If the rental company receives a fine linked to the rented vehicle, they may charge the renter’s credit card or deduct it from the security deposit.
  • Some rental companies may also charge an administrative fee for processing fines.

10. Car Repair and Maintenance Policy

  • Routine maintenance will be handled by the rental service.
  • Any damage due to reckless driving or negligence will be charged to the renter.
  • In case of mechanical failure, the renter must inform the agency immediately.

1. Routine Maintenance

  • The rental service is responsible for conducting regular vehicle maintenance, including oil changes, tire rotations, brake checks, and engine servicing.
  • Renters do not need to worry about these routine tasks unless otherwise specified in the rental agreement.

2. Damage Due to Reckless Driving or Negligence

  • Any damage caused by reckless driving, speeding, off-road use, or failure to follow traffic laws will be charged to the renter.
  • Negligence-related damages, such as failing to secure the vehicle properly (e.g., leaving windows open in rain or not locking the car), will also be the renter’s responsibility.
  • The renter must cover repair costs, which will be determined based on the severity of the damage and the rental company’s assessment.

3. Mechanical Failures

  • If the vehicle experiences a mechanical failure (not caused by the renter’s actions), the renter must immediately inform the rental agency.
  • The rental company will provide guidance on next steps, which may include:
    • Arranging a replacement vehicle
    • Sending roadside assistance
    • Reimbursing costs for approved repairs (if the renter has to take the car to a service center)
  • Failure to report a mechanical issue promptly may result in additional charges.

11. Returning the Bike/Car

  1. The vehicle must be returned at the agreed location and time.
  2. Late returns will attract a penalty.
  3. The vehicle must be returned in the same condition as provided.

Return Location & Timing

  • The vehicle must be returned at the agreed-upon location specified in the rental agreement.
  • The return should be made at the designated time to avoid inconvenience.
  • If you wish to return the vehicle to a different location, prior approval from the rental company is required and may incur additional charges.

Late Return Policy

  • If the vehicle is returned past the agreed return time, a late fee will be charged.
  • The penalty may be calculated on an hourly or daily basis, as per the rental company’s policy.
  • Repeated late returns may impact future rentals or result in additional fines.

Condition of the Vehicle

  • The vehicle must be returned in the same condition as when it was rented.
  • Any damages, scratches, or missing accessories (such as helmets or tools) will be charged to the renter.
  • The fuel level should match the level agreed upon at the time of rental. If not, a refueling charge may apply.
  • The vehicle must be clean and free of excessive dirt, stains, or spills. Cleaning fees may be imposed if required.

Inspection & Handover

  • A rental agent may inspect the vehicle upon return to check for damages or discrepancies.
  • The renter should ensure that all personal belongings are removed from the vehicle before returning it.
  • Any disputes regarding damage charges should be addressed during the inspection process.

12. Payment Procedure

  • Payments can be made through UPI, credit/debit cards, or cash.
  • GST (Goods and Services Tax) is applicable on rental charges.
GST RateApplicable
Car/Vehicle Rental Services18%

1. Available Payment Methods:

  • UPI (Unified Payments Interface) – Payments can be made through UPI-enabled apps such as Google Pay, PhonePe, Paytm, etc.
  • Credit/Debit Cards – All major credit and debit cards (Visa, MasterCard, RuPay, etc.) are accepted.
  • Cash – Customers can also make payments in cash.

2. GST (Goods and Services Tax) on Rental Charges:

  • The applicable GST rate for car/vehicle rental services is 18%.
  • GST is calculated on the total rental amount before tax.

3. GST Calculation Example:

  • Suppose the base rental cost is ₹10,000.
  • GST at 18% = ₹10,000 × 18% = ₹1,800.
  • Total Payable Amount = ₹10,000 + ₹1,800 = ₹11,800.

4. Payment Invoice:

  • An official invoice will be provided with the breakdown of the base fare, GST amount, and total payable amount.
  • The invoice can be used for tax filing or reimbursement purposes.

5. Refund & Cancellation Policy:

  • Full refund: If canceled within the allowed cancellation window (as per the service provider’s policy).
  • Partial refund: If canceled after the allowed period, cancellation charges may apply.
  • No refund: If the rental service has already been availed.

13. Safety Guidelines

  • Always wear a helmet (for bike rentals).
  • Follow traffic rules strictly.
  • Avoid using mobile phones while driving.

Always Wear a Helmet (for Bike Rentals)

  • Helmets provide essential protection against head injuries.
  • It is mandatory in many regions to wear a helmet while riding a bike.
  • Ensure the helmet fits properly and is securely fastened under your chin.

Follow Traffic Rules Strictly

  • Obey all traffic signals, signs, and road markings.
  • Yield to pedestrians and other vehicles as required by law.
  • Use proper signals when turning or changing lanes.
  • Maintain a safe speed and distance from other vehicles.

Avoid Using Mobile Phones While Driving

  • Using a phone while driving increases the risk of accidents.
  • If necessary, use hands-free options or pull over safely before using your phone.
  • Stay focused on the road and avoid distractions such as texting, browsing, or talking on the phone.

14. Insurance Coverage

Coverage TypeDescriptionLimit
Third-PartyCovers damage to othersAs per policy
Personal AccidentOptional at extra cost₹5,00,000

1. Third-Party Insurance

  • Coverage Type: Third-Party
  • Description: Covers damages to third-party persons or property due to an accident caused by the insured vehicle.
  • What It Covers:
    • Bodily injury or death of a third party.
    • Damage to third-party property.
  • Limit: As per policy (defined by the insurance provider and regulatory authorities).
  • Mandatory?: Yes, as per the Motor Vehicles Act, third-party insurance is mandatory for all vehicles.

2. Personal Accident Insurance

  • Coverage Type: Personal Accident
  • Description: Provides financial protection in case of accidental death or disability of the insured driver.
  • What It Covers:
    • Death due to an accident.
    • Permanent total disability.
    • Partial permanent disability.
  • Limit: ₹5,00,000
  • Mandatory?: No, it is optional and available at an extra cost. However, it is highly recommended for financial security.

15. Emergency Contact and Roadside Assistance

In case of breakdowns or accidents, renters must contact the emergency helpline number provided by the rental service.

15.1 Reporting a Breakdown or Accident

  • If the rental vehicle breaks down or is involved in an accident, the renter must immediately contact the emergency helpline number provided by the rental service.
  • The emergency number will be shared at the time of vehicle pick-up and may also be found in the rental agreement or inside the vehicle.

15.2 Roadside Assistance Coverage

  • The rental service offers 24/7 roadside assistance for:
    • Flat tires
    • Engine failure
    • Battery jump-starts
    • Towing services (if required)
    • Fuel delivery (charges may apply)
    • Lockout assistance (if keys are locked inside the vehicle)

15.3 Procedure for Accidents

  • In case of an accident:
    • Ensure safety by moving to a secure location (if possible).
    • Contact local emergency services (police, ambulance) if needed.
    • Report the incident to the rental company’s helpline immediately.
    • Do not leave the accident scene until instructed by authorities.
    • If possible, take photos of the damages and collect witness details.
    • Obtain a police report (if required for insurance purposes).

15.4 Costs and Liability

  • The renter may be responsible for any damage or repair costs unless covered by rental insurance.
  • If the breakdown is due to renter negligence (e.g., running out of fuel, lost keys), additional charges may apply.
  • In case of an accident, insurance coverage will be assessed based on the rental agreement terms.

15.5 Exclusions from Assistance

  • The rental service does not cover assistance for unauthorized vehicle use, off-road driving incidents, or damages caused by reckless driving.