1. Introduction
Bike and car rentals in Chandigarh are regulated to ensure the safety and rights of both the renter and the rental service provider. The laws cover rental policies, eligibility criteria, documents required, renter liability, and exclusions.
2. Policies and Terms & Conditions
| Policy | Description |
| Rental Duration | The minimum rental duration is 24 hours unless specified otherwise by the service provider. |
| Insurance Coverage | Third-party insurance is typically included; additional coverage can be purchased. |
1. Rental Duration
- The minimum rental period is 24 hours unless stated otherwise by Motoshare.
- Rentals can be extended, but the request must be made before the booking ends.
- Late returns may incur extra charges as per the pricing policy.
2. Insurance Coverage
- Third-party insurance is generally included in the rental.
- Additional comprehensive coverage (damage protection, theft, or personal accident coverage) may be available for purchase.
- Any damage to the vehicle due to negligence or misuse will be the responsibility of the renter.
- The renter is liable for traffic violations and fines incurred during the rental period.
3. Eligibility Criteria
- Minimum age of 18 years for bike rentals; 21 years for car rentals.
- Valid government-issued driving license (both national and international).
- Government ID proof such as Aadhaar Card, Passport, Voter ID for identity verification.
- Proof of residence (if required).
1. Age Requirements
- Bike Rentals: Minimum age requirement is 18 years.
- Car Rentals: Minimum age requirement is 21 years.
2. Driving License Requirements
- A valid government-issued driving license is mandatory.
- Both national and international licenses are accepted.
- The license should be valid and not expired at the time of rental.
3. Identity Verification
- Renters must provide a government-issued ID proof for verification.
- Accepted ID proofs include:
- Aadhaar Card
- Passport
- Voter ID
4. Proof of Residence (if required)
- In some cases, renters may need to submit proof of residence.
- Acceptable documents may include:
- Utility bill (electricity, water, gas, etc.)
- Rental agreement or property ownership document
- Bank statement with address
4. Documents Required
| Document | Purpose |
|---|---|
| Driving License | Verification of driving capability and eligibility |
| Government ID (Aadhaar, Passport) | Identity verification |
| Passport-size Photo | Record maintenance |
| International Driving Permit (IDP) | For foreign nationals |
1. Driving License
- Purpose: Verification of driving capability and eligibility
- Details:
- The license must be valid and not expired.
- It should authorize the holder to drive the specific type of vehicle being rented (e.g., a motorcycle license for bikes and a four-wheeler license for cars).
- Must be issued by a recognized transport authority.
2. Government ID (Aadhaar, Passport, etc.)
- Purpose: Identity verification
- Details:
- Any government-issued ID (such as Aadhaar, Passport, Voter ID, or PAN Card) can be used for verification.
- The ID must be clear, legible, and match the details provided during the booking.
- The address on the ID may be required for additional verification.
3. Passport-size Photo
- Purpose: Record maintenance
- Details:
- A recent passport-size photograph is required for documentation.
- The photo may be used for profile creation, rental agreements, and future reference.
- It should be clear, with no obstructions such as sunglasses or caps.
4. International Driving Permit (IDP) (For Foreign Nationals Only)
- Purpose: Legal authorization for foreign nationals to drive in India
- Details:
- Required if the renter is a foreign national and holds a driving license from another country.
- Must be issued by the transport authority of the renter’s home country.
- Should be valid for the rental period and cover the type of vehicle being rented.
5. Agreement and Exclusions
Agreement Highlights:
- The agreement must specify rental charges, duration, inclusions, exclusions, and penalties.
- Any modification to the agreement must be agreed upon in writing.
Exclusions:
| Service | Exclusions |
|---|---|
| Insurance Coverage | Personal accident insurance is generally not included. |
| Fuel Costs | Renters must bear the fuel expenses. |
| Interstate Taxes | Renters are responsible for all interstate taxes. |
| Mechanical Damages | Damages caused by the renter’s negligence are not covered. |
Agreement Highlights
- Rental Charges
- The rental charges must be clearly stated, including daily, weekly, or monthly rates.
- Any additional fees (security deposit, late return charges, etc.) must also be mentioned.
- Rental Duration
- The start and end date of the rental period must be defined.
- Extensions must be requested in advance and are subject to availability and additional charges.
- Inclusions
- The agreement should specify what is included in the rental package, such as:
- Standard vehicle maintenance
- Roadside assistance (if applicable)
- Basic accessories (helmet for bikes, spare tire for cars, etc.)
- The agreement should specify what is included in the rental package, such as:
- Exclusions
- The agreement should outline what is not included in the rental package (details below).
- Penalties
- Late return fees, damage penalties, and breach of contract consequences should be clearly mentioned.
- Traffic violations, fines, and penalties incurred during the rental period are the renter’s responsibility.
- Modification of Agreement
- Any changes to the agreement (such as extending the rental period or modifying terms) must be agreed upon in writing by both parties.
Exclusions (What is NOT Covered)
| Service | Exclusions |
|---|---|
| Insurance Coverage | Personal accident insurance is not included by default. Renters should arrange their own coverage. |
| Fuel Costs | The renter is responsible for all fuel expenses during the rental period. The vehicle must be returned with the same fuel level as at pickup. |
| Interstate Taxes | If the renter takes the vehicle outside Aligarh or crosses state borders, they must pay all applicable interstate taxes and tolls. |
| Mechanical Damages | Any damage caused due to renter’s negligence, reckless driving, or misuse (such as off-roading, over-speeding, etc.) is not covered and must be paid for by the renter. |
6. Cost Structure
| Cost Component | Responsibility | Details |
|---|---|---|
| Fuel Cost | Paid by the renter | The vehicle is provided with a certain fuel level, and renters are responsible for refueling during the rental period. Fuel expenses are not included in the rental charges. |
| Parking Charges | Paid by the renter | Any parking fees incurred during the rental period must be paid by the renter. This includes public or private parking spaces. |
| Toll Taxes | Paid by the renter | If the renter uses toll roads or highways, they are responsible for paying toll fees. This applies to manual toll payments and FASTag deductions. |
| Security Deposit | Refundable after the rental period, subject to conditions | A security deposit is collected at the beginning of the rental. It is refunded after the rental period, provided there are no damages, violations, or outstanding charges. The refund process may take a few working days. |
7. GST Rate for Vehicle Rental Services
| Service | GST Rate |
|---|---|
| Bike Rental Service | 5% GST on the rental amount |
| Car Rental Service | 18% GST on the rental amount for chauffeur-driven services and 5% for self-driven cars |
Bike Rental Service
- GST Rate: 5% on the rental amount.
- Conditions:
- Applicable for self-drive bike rentals.
- No Input Tax Credit (ITC) is available under this rate.
Car Rental Service
A. Self-Drive Car Rentals:
- GST Rate: 5% on the rental amount.
- Conditions:
- The car is rented without a driver.
- No ITC is available under this rate.
B. Chauffeur-Driven (Cab) Rentals:
- GST Rate: 18% on the rental amount.
- Conditions:
- This includes car rental services where the driver is provided.
- The service is classified under transportation of passengers.
- ITC may be claimed by businesses availing the service.
Important Notes:
- The GST is calculated on the total rental charge collected from the customer.
- GST registration is mandatory for rental businesses exceeding the threshold turnover limit.
- Businesses opting for the 5% GST rate (bike rental & self-drive car rental) cannot claim ITC on GST paid on purchases related to the business.
8. Renter’s Liability
- The renter is liable for any damage caused to the vehicle during the rental period.
- Traffic violations and fines are the responsibility of the renter.
- Late returns may incur additional charges, as per the rental agreement.
1. Vehicle Damage Liability
- The renter is liable for any damage caused to the vehicle during the rental period, including but not limited to:
- Accidental damages
- Scratches, dents, or structural damages
- Engine or mechanical damage due to negligence
- Damages resulting from reckless driving or misuse
- Loss of vehicle parts (e.g., mirrors, indicators, or seats)
- Repair & Replacement Costs
- The renter must cover the repair costs or pay the insurance deductible (if applicable).
- In case of total loss (severe damage beyond repair), the renter may be required to compensate based on the market value of the vehicle.
2. Traffic Violations & Fines
- The renter is solely responsible for any traffic rule violations during the rental period.
- This includes:
- Speeding tickets
- Parking fines
- Signal jumping
- Unauthorized road usage (e.g., toll evasion)
- Driving under the influence (DUI)
- Any penalties or legal actions taken due to traffic violations must be paid by the renter.
3. Late Return Charges
- The renter must return the vehicle within the agreed-upon rental period.
- Additional charges may apply for late returns, calculated based on:
- Hourly delay rate (e.g., extra hours charged proportionally)
- Full-day charge if the vehicle is returned beyond the grace period (if applicable)
- Possible cancellation of future bookings for repeated delays
9. Car Repair and Maintenance
- Routine maintenance is the responsibility of the service provider.
- Emergency roadside assistance may be available at an additional cost.
- Mechanical failures due to vehicle issues are covered by the rental service.
Routine Maintenance
- The service provider is responsible for regular maintenance, including:
- Oil Changes – Ensuring the engine remains in optimal condition.
- Brake Inspections – Checking brake pads, fluid levels, and performance.
- Tire Maintenance – Rotations, alignments, and replacements when necessary.
- Fluid Checks – Monitoring coolant, transmission fluid, and windshield washer fluid.
- Battery Inspection – Ensuring reliable starts and preventing breakdowns.
- General Vehicle Inspection – Identifying and fixing potential issues before they cause problems.
2. Emergency Roadside Assistance
- Available as an additional service (may incur extra charges).
- Covers incidents such as:
- Flat Tires – On-the-spot repair or replacement.
- Battery Jump-Start – Assistance if the battery dies.
- Lockout Service – Help if keys are locked inside the vehicle.
- Fuel Delivery – If the vehicle runs out of fuel.
- Towing Service – If the car is not drivable.
3. Mechanical Failures
- If the vehicle experiences a mechanical failure due to inherent issues:
- The rental service covers the repair costs.
- A replacement vehicle may be provided, depending on availability.
- Examples of covered failures:
- Engine Malfunctions
- Transmission Failures
- Brake System Issues
- Electrical Failures
- Suspension Problems
10. Inclusions
- One helmet for bike rentals is typically provided.
- Basic tool kit and first-aid kit for emergency use.
- Comprehensive insurance coverage for third-party liability.
Inclusions for Bike Rentals:
- One Helmet
- A standard protective helmet is provided for the rider.
- Additional helmets may be available on request (subject to availability).
- Basic Tool Kit & First-Aid Kit
- A small tool kit for minor repairs, such as puncture repair tools, spanners, and a screwdriver.
- A first-aid kit with essential medical supplies, including bandages, antiseptic, pain relievers, and disinfectants for emergency use.
- Comprehensive Insurance Coverage
- Third-Party Liability: Covers damages caused to third parties in case of an accident.
- Personal Accident Cover (if applicable): May include financial coverage for the rider in case of injury.
- Vehicle Damage Protection (if applicable): Limited coverage for accidental damages (subject to terms and conditions).
Inclusions for Car Rentals:
- Basic Safety Kit
- Includes a spare tire, jack, and essential tools for minor roadside issues.
- First-Aid Kit
- Stocked with essential medical supplies for emergency situations.
- Comprehensive Insurance Coverage
- Third-Party Liability: Covers damages to third parties.
- Personal Accident Insurance: Optional or included, depending on the plan.
- Collision Damage Waiver (if applicable): May reduce liability for damages to the rental vehicle.
11. Returning the Vehicle
- Vehicles must be returned on time to avoid additional charges.
- Any damages must be reported at the time of return.
- Ensure the vehicle is returned with the agreed fuel level.
Return Timing
- The vehicle must be returned at the agreed-upon time as per the rental agreement.
- Late returns may result in additional charges, which will be calculated based on the delay duration and the company’s rental policies.
Damage Reporting
- The renter must inspect the vehicle and report any damages at the time of return.
- If any new damage is found, the renter may be liable for repair costs as per the rental agreement.
- An inspection will be conducted by a representative to assess the vehicle’s condition.
Fuel Level Requirement
- The vehicle should be returned with the same fuel level as mentioned in the agreement.
- If the fuel level is lower than agreed, additional fuel charges may apply.
- If the vehicle is returned with more fuel than required, no refunds will be provided for the excess amount.
12. Payment Procedure
| Payment Mode | Details |
|---|---|
| Cash | Accepted by most service providers |
| Credit/Debit Card | Secure payment options |
| UPI/Digital Wallets | Popular for quick transactions |
Motoshare offers multiple payment options for the convenience of customers. Below are the accepted payment modes along with their details:
1. Cash Payment
✅ Availability: Accepted by most service providers.
✅ Details: Customers can pay in cash at the time of vehicle pickup. However, exact change is recommended for smooth transactions.
✅ Pros: No need for digital transactions, easy for those who prefer physical payments.
✅ Cons: Not available for online pre-booking, risk of carrying cash.
2. Credit/Debit Card
✅ Availability: Secure payment option for online and offline bookings.
✅ Details: Customers can use Visa, MasterCard, Rupay, or other major credit/debit cards for transactions. Payments are processed through secure gateways.
✅ Pros: Convenient, traceable, and secure.
✅ Cons: May incur additional transaction fees depending on the bank.
3. UPI/Digital Wallets
✅ Availability: Popular for quick transactions, widely accepted.
✅ Details: Customers can use Google Pay, PhonePe, Paytm, or other UPI-linked apps for instant payments.
✅ Pros: Fast, cashless, and widely used.
✅ Cons: Requires an active internet connection and a linked bank account.
13. Penalties and Limitations
| Violation | Penalty/Fine | Details |
|---|
| Late Return | Additional hourly/daily rental charges | If the vehicle is not returned on time, extra charges will be applied as per the standard rental rates. Delays beyond a specific time limit may incur additional penalties. |
| Unauthorized Interstate Travel | Heavy fine or termination of agreement | Renters are required to seek prior permission for interstate travel. Unauthorized travel outside designated states may result in substantial fines or immediate termination of the rental agreement. |
| Traffic Violations | Renter’s responsibility to pay fines | Any fines incurred due to overspeeding, parking violations, signal jumping, or any other traffic offenses are the sole responsibility of the renter. Proof of fine payment may be required upon request. |
14. Fuel Policy
- Vehicles are provided with a specific fuel level, and renters must return them with the same fuel level.
- Failure to do so may result in refueling charges at higher-than-market rates.
Initial Fuel Level:
- Each vehicle (bike or car) will be provided to the renter with a specific fuel level.
- The fuel level will be recorded at the time of handover and mentioned in the rental agreement.
Responsibility of the Renter:
- The renter must return the vehicle with the same amount of fuel as provided at the time of pick-up.
- If the fuel level is lower upon return, additional charges will apply.
Refueling Charges:
- If the vehicle is returned with less fuel than provided, the renter will be charged refueling fees.
- These charges will be higher than market rates due to service and handling fees.
Fuel Top-Up Option (If Available):
- Some rental packages may include an option to pre-pay for a full tank.
- This allows renters to return the vehicle with any fuel level without incurring refueling charges.
Fuel Receipts and Proof:
- If the renter refuels the vehicle before returning it, it is advised to keep the fuel receipt as proof.
- In case of disputes over fuel level, photographic evidence may be required.
Consequences of Incorrect Fuel Type:
- If a renter uses the wrong type of fuel (e.g., diesel instead of petrol), they will be liable for all repair costs.
No Refund for Excess Fuel:
- If the renter returns the vehicle with more fuel than was originally provided, no refunds or credits will be issued.
15. Mechanical Warranty
Most rental services offer a mechanical warranty for the rented vehicles. However:
- Damages caused due to negligence or misuse by the renter are not covered.
- Routine maintenance like oil changes and tire checks are the provider’s responsibility.
1. Coverage Provided by the Rental Service
Most vehicle rental services include a mechanical warranty, which typically covers the following:
- Mechanical Failures: If the vehicle experiences a breakdown due to normal wear and tear, the rental company will cover the repair costs.
- Manufacturer Defects: Any inherent mechanical issue due to faulty parts from the manufacturer is covered.
- Emergency Repairs: If the vehicle breaks down during the rental period due to mechanical issues, the rental service may provide roadside assistance or a replacement vehicle.
2. Exclusions: What is Not Covered?
The warranty does not cover damages due to the renter’s negligence, misuse, or intentional harm, including:
- Accidents Caused by the Renter: If the vehicle is damaged in an accident due to reckless driving, the renter is liable.
- Improper Use: Overloading, driving on restricted or off-road terrains, or using the vehicle for racing is not covered.
- Failure to Report Issues: If a minor issue turns into a major failure because the renter did not report it on time, the repair cost falls on the renter.
- Unauthorized Repairs: Any repair work done without approval from the rental provider will not be reimbursed.
3. Routine Maintenance Responsibilities
Routine maintenance is typically the responsibility of the rental provider and includes:
- Oil Changes: Regular oil changes to ensure engine performance.
- Tire Checks & Replacement: Ensuring proper tire pressure, alignment, and tread depth.
- Brake Inspections: Checking and replacing brake pads if necessary.
- Battery & Fluid Top-Ups: Ensuring the battery, coolant, and transmission fluid levels are adequate.
4. What to Do in Case of Mechanical Failure?
If the vehicle encounters a mechanical issue during the rental period:
- Immediately Contact the Rental Provider – Inform them about the issue.
- Do Not Attempt Repairs Yourself – Unauthorized repairs may void the warranty.
- Follow Provider Instructions – The company may send a mechanic, arrange a replacement vehicle, or guide you on further steps.
- Keep Documentation – If repair costs are incurred (with permission), save all receipts for reimbursement (if applicable).
16. Cancellation Policy
| Cancellation Time | Refund Eligibility |
|---|---|
| Within 24 hours of booking | Full refund |
| Less than 24 hours before rental | Partial refund |
| After rental start | No refund |
1. Cancellation Within 24 Hours of Booking
- Refund Eligibility: Full refund
- Conditions:
- The cancellation must be made within 24 hours from the time of booking.
- The refund is processed without any deductions.
- This applies regardless of the rental start time.
- The refund will be credited to the original payment method within a few working days.
2. Cancellation Less Than 24 Hours Before Rental Start Time
- Refund Eligibility: Partial refund
- Conditions:
- If the cancellation occurs within 24 hours before the rental period starts, only a portion of the amount will be refunded.
- The exact deduction percentage depends on Motoshare’s policies (e.g., processing fees, administrative charges).
- The remaining refundable amount will be credited back to the original payment method.
3. Cancellation After the Rental Period Has Started
- Refund Eligibility: No refund
- Conditions:
- Once the rental period has begun, cancellations are not eligible for any refund.
- This includes scenarios where the vehicle is returned early or unused.
- The full amount is retained as the service has been initiated.