Bike and Car Renting Laws in Dadra & Nagar Haveli and Daman & Diu

Uncategorized
Posted on | by pritesh K

The Union Territory of Dadra & Nagar Haveli and Daman & Diu adheres to the Motor Vehicles Act, 1988, and the Central Motor Vehicles Rules, 1989, which govern vehicle rentals, including bikes and cars. While there are no specific local laws exclusively for bike and car rentals.

Table of Contents

1. Eligibility and Documentation

To rent a bike or car in Dadra & Nagar Haveli and Daman & Diu, the following criteria and documents are typically required:

  • Age Requirement: Minimum age of 18 years.
  • Driving License: A valid driving license appropriate for the vehicle category.
  • Identification Proof: Government-issued ID (e.g., Aadhaar card, Passport).
  • Address Proof: Utility bills, rental agreement, or any official document indicating residential address.

Before renting a bike or car, you must meet the following eligibility conditions:

  • Age Requirement: The renter must be at least 18 years old.
  • Valid Driving License:
    • You must possess a valid driving license appropriate for the vehicle category.
    • The license should be issued by a recognized transport authority in India.
  • Identification Proof:
    • You need to provide a government-issued ID for identity verification. Acceptable IDs include:
      • Aadhaar Card
      • Passport
      • Voter ID
      • PAN Card (as an additional proof)
  • Address Proof:
    • You must provide a valid address proof to confirm your place of residence. Acceptable documents include:
      • Utility Bill (Electricity, Water, Gas)
      • Rental Agreement
      • Bank Statement
      • Passport

2. Required Documentation

To successfully rent a bike or car, prepare the following documents:

✅ Driving License (Original & Copy) – Must be valid and match the vehicle type.
✅ Government-issued ID (Original & Copy) – Aadhaar, Passport, or Voter ID.
✅ Address Proof (Original & Copy) – Utility bill, rental agreement, etc.
✅ Security Deposit – Some rental providers may ask for a refundable deposit.

3. Rental Agreement & Terms

Once you meet the eligibility and documentation requirements:

  1. Read the rental terms carefully – Check fuel policy, insurance coverage, and penalties for late return.
  2. Sign the rental agreement – This includes terms of use, duration, and any additional charges.
  3. Inspect the vehicle – Check for existing damages and take pictures before renting.
  4. Receive the vehicle – The rental company will hand over the bike or car after verification.

2. Terms and Conditions

Rental agreements generally include the following terms:

  • Rental Duration: Specified period for which the vehicle is rented.
  • Security Deposit: Refundable deposit to cover potential damages or violations.
  • Usage Limitations: Restrictions on mileage, geographical boundaries, and prohibited activities.
  • Fuel Policy: Guidelines on fuel usage and refueling requirements.

1. Rental Duration

  • The rental period must be clearly specified in the rental agreement.
  • The rental starts from the date and time of vehicle pickup and ends at the agreed return date and time.
  • Extensions beyond the agreed period may require prior approval and additional charges.
  • Late returns without prior notice will incur penalty charges per hour or day.

2. Security Deposit

  • A refundable security deposit is required at the time of booking.
  • The deposit amount depends on the type of vehicle rented.
  • The deposit is refunded after returning the vehicle in proper condition.
  • Deductions may be applied in case of damages, missing accessories, traffic fines, or policy violations.

3. Usage Limitations

  • Mileage Restrictions: A daily or total mileage limit may apply. Extra kilometers will be charged additionally.
  • Geographical Boundaries: The vehicle is to be used only within specified city limits or designated areas. Crossing state or country borders may be prohibited or require special permission.
  • Prohibited Activities: The vehicle must not be used for racing, illegal activities, towing, or carrying hazardous materials.
  • Authorized Drivers: Only the person(s) listed in the rental agreement is allowed to drive the vehicle.

4. Fuel Policy

  • The vehicle is provided with a certain fuel level and must be returned with the same fuel level.
  • Refueling charges apply if the vehicle is returned with less fuel than provided.
  • Fuel expenses during the rental period are the responsibility of the renter.

5. Insurance and Liability

  • Basic insurance coverage may be included, but renters are advised to check the coverage details.
  • Any damages beyond normal wear and tear may be chargeable.
  • Renters must report accidents, theft, or damages immediately to the rental company.

6. Booking and Cancellation

  • Bookings can be made online or through the Motoshare platform.
  • Cancellations may be subject to a fee, depending on the cancellation policy.
  • No-show or last-minute cancellations may not be eligible for a refund.

7. Maintenance and Breakdown Assistance

  • Renters are expected to maintain the vehicle in proper condition.
  • In case of a breakdown, contact the rental company immediately for assistance.
  • Unauthorized repairs or modifications to the vehicle are strictly prohibited.

8. Traffic Rules and Fines

  • The renter is responsible for following all traffic rules and regulations.
  • Any fines, penalties, or legal violations during the rental period are the responsibility of the renter.
  • Parking fees and toll charges must be paid by the renter.

9. Vehicle Return

  • The vehicle must be returned to the agreed location at the scheduled time.
  • Any damage or missing parts must be reported upon return.
  • The rental company will inspect the vehicle before refunding the security deposit.

3. Inclusions and Exclusions

Rental services may offer various inclusions and exclusions:

  • Inclusions:
    • One Helmet: Mandatory provision of a helmet for bike rentals.
    • Basic Insurance: Coverage for the vehicle as per regulatory requirements.
    • Roadside Assistance: Support in case of mechanical breakdowns.
  • Exclusions:
    • Fuel Cost: Typically borne by the renter.
    • Interstate Taxes: Applicable if the vehicle is taken outside the Union Territory.
    • Parking Charges: Responsibility of the renter.
    • Toll Taxes: To be paid by the renter as incurred.

1. Inclusions (What is Included in the Rental Service)

These are the benefits that come with the rental without extra charges.

1.1 One Helmet
  • For bike rentals, one helmet is mandatory and provided free of cost.
  • Ensures safety compliance and follows government regulations.
  • Additional helmets may be available at an extra cost (depends on rental service policies).
1.2 Basic Insurance
  • Covers damage to the vehicle as per regulatory requirements.
  • Typically includes third-party liability coverage.
  • Does not cover intentional damage, negligence, or unauthorized usage.
  • For comprehensive insurance, check if an additional fee applies.
1.3 Roadside Assistance
  • Helps in case of mechanical breakdowns during the rental period.
  • Includes towing services, minor repairs, and battery jump-start assistance.
  • May be available 24/7, but some services could have a limited free coverage area.
  • User must call customer support for assistance when needed.

2. Exclusions (What is Not Included in the Rental Service)

These are costs or responsibilities that the renter must bear separately.

2.1 Fuel Cost
  • The renter is responsible for fuel expenses.
  • Vehicles are typically provided with a minimum fuel level, and renters must return them as per policy.
  • Fuel prices vary by location, and renters must refill at their own cost.
2.2 Interstate Taxes
  • If the vehicle is taken outside the Union Territory (UT) or state, additional taxes may apply.
  • These are known as border permits or road tax, which the renter must pay.
  • Charges vary depending on the state regulations.
2.3 Parking Charges
  • The renter must pay for parking wherever applicable (e.g., malls, public parking areas, hotels).
  • Any fines or penalties for illegal parking are also the renter’s responsibility.
2.4 Toll Taxes
  • The renter must pay for toll taxes incurred while driving on highways or expressways.
  • If the vehicle is equipped with FASTag, the renter must ensure sufficient balance.
  • Some rental services may deduct toll charges from the security deposit if necessary.

4. Renter’s Liability and Vehicle Maintenance

  • Renter’s Liability: The renter is liable for any traffic violations, damages due to negligence, and must ensure the vehicle is used in compliance with local laws.
  • Vehicle Maintenance: Routine maintenance is the responsibility of the rental company; however, the renter should report any issues promptly.

1. Renter’s Liability

A. Responsibility for Traffic Violations

  1. The renter must obey all local traffic laws and regulations while using the vehicle.
  2. If the renter receives any traffic ticket or fine during the rental period, they are responsible for paying it.
  3. Failure to pay fines may result in additional penalties or legal consequences.

B. Liability for Damages Due to Negligence

  1. The renter is responsible for any damage caused to the vehicle due to reckless driving or negligence.
  2. Negligence includes:
    • Driving under the influence of alcohol or drugs.
    • Using the vehicle for illegal activities.
    • Allowing unauthorized persons to drive the vehicle.
    • Overloading or misusing the vehicle.
  3. The renter must bear the cost of repair or compensation for damages caused by negligence.

C. Compliance with Local Laws

  1. The renter must ensure the vehicle is used within the legal boundaries of the city/state/country.
  2. The vehicle should not be driven in restricted areas or outside the permitted geographical region mentioned in the rental agreement.
  3. The renter must have a valid driving license and adhere to age restrictions set by the rental company.

2. Vehicle Maintenance

A. Rental Company’s Responsibility

  1. The rental company is responsible for routine maintenance and servicing of the vehicle.
  2. This includes:
    • Regular oil changes, brake inspections, and tire replacements.
    • Ensuring the vehicle is in roadworthy condition before handing it over to the renter.
    • Providing assistance in case of a mechanical failure due to regular wear and tear.

B. Renter’s Responsibility to Report Issues

  1. If the renter notices any mechanical or technical issue during the rental period, they must report it immediately to the rental company.
  2. Failure to report issues that lead to further damage may result in the renter being held liable.
  3. The renter should not attempt to repair the vehicle themselves unless authorized by the rental company.

C. Emergency Maintenance or Repairs

  1. If the vehicle breaks down unexpectedly, the renter should contact the rental company for guidance.
  2. In case of minor repairs (e.g., tire puncture), the renter may get it fixed but must keep receipts for reimbursement (if applicable).
  3. The renter should avoid using unauthorized garages or mechanics to prevent further complications.

5. Payment Procedure and Taxes

  • Payment Methods: Renters can pay via cash, credit/debit cards, or digital wallets, as accepted by the rental service.
  • GST Rate: As per the Goods and Services Tax regulations, vehicle rental services attract a GST rate of 18%.

1. Payment Methods

Renters can choose from multiple payment options:

a. Cash Payment

  • Renters can pay the rental fee in cash at the time of pickup or return.
  • A receipt should be provided for cash payments.

b. Credit/Debit Cards

  • Accepted cards: Visa, MasterCard, RuPay, and others supported by the rental service.
  • The renter must ensure sufficient funds in their account before the transaction.
  • A transaction receipt should be provided.

c. Digital Wallets (UPI, Paytm, Google Pay, PhonePe, etc.)

  • Renters can pay using UPI-based payments or digital wallets.
  • Payment confirmation should be verified before handing over the vehicle.

d. Online Bank Transfer (NEFT/IMPS/RTGS)

  • Renters can transfer the rental amount directly to the company’s bank account.
  • The rental service should confirm the payment before providing the vehicle.

2. Security Deposit (If Applicable)

  • Some rentals may require a security deposit, refundable upon safe return of the vehicle.
  • The deposit can be paid via any of the accepted payment methods.

3. GST (Goods and Services Tax) on Vehicle Rentals

  • GST Rate: As per Indian taxation laws, vehicle rental services attract 18% GST.
  • The tax is calculated on the total rental amount, including any additional charges.
  • The invoice should clearly mention:
    • Base Rent Amount
    • GST (18%) Calculation
    • Total Amount Payable

Example Calculation:

DescriptionAmount (INR)
Base Rental Price₹1,000
GST @ 18%₹180
Total Payable₹1,180

4. Invoice Generation

  • After payment, the rental service should generate a proper GST invoice.
  • The invoice should contain:
    • Business Name & GSTIN (if registered)
    • Invoice Number
    • Renter’s Name & Contact Details
    • Vehicle Details (Model, Number Plate, Rental Duration)
    • Payment Breakdown (Base Fare, GST, Total)

5. Refund & Cancellation Policy

  • Full Refund: If canceled before a certain time (as per policy).
  • Partial Refund: If canceled after the booking but before pickup.
  • No Refund: If canceled after pickup or no-show.

6. Late Payment or Non-Payment Handling

  • A penalty may be charged for late payments.
  • If payment is not received, legal action or vehicle repossession may be considered.

6. Agreement and Termination

  • Rental Agreement: A formal contract outlining all terms, conditions, and responsibilities, to be signed by both parties.
  • Termination: Conditions under which the agreement can be terminated by either party, including penalties for breach of contract.

A. Rental Agreement

The rental agreement is a legally binding document that defines the terms of the rental service between the owner and the renter. It should include the following:

  1. Basic Details
    • Name, address, and contact details of both parties (Owner & Renter).
    • Vehicle details (Type, Model, Registration Number, etc.).
    • Rental start and end date.
  2. Terms of Use
    • The permitted usage of the vehicle (e.g., private use, commercial use).
    • Geographical limits (if applicable).
    • Restrictions on subleasing or transferring the rental.
  3. Rental Charges and Payment Terms
    • Rental amount (daily, weekly, or monthly).
    • Payment mode (Cash, Bank Transfer, UPI, etc.).
    • Late return charges or penalties.
  4. Security Deposit
    • Amount to be deposited before renting the vehicle.
    • Conditions under which the deposit is refundable or non-refundable.
  5. Insurance and Liability
    • Type of insurance coverage (if any).
    • Responsibility for damages, accidents, or theft.
    • Any additional charges for damage not covered by insurance.
  6. Maintenance and Repairs
    • Who is responsible for regular maintenance?
    • Rules regarding mechanical failures or breakdowns.
  7. Documentation Required
    • Renter’s valid ID proof (Aadhar Card, Passport, Driver’s License).
    • Copy of a valid driving license.
    • Any additional documents required as per local laws.
  8. Agreement Acknowledgment
    • Both parties sign and agree to the contract.
    • Copies are kept by both the owner and the renter.

B. Termination of Agreement

The agreement can be terminated under certain conditions, with proper notice and penalties where applicable.

  1. By the Owner (Rental Provider)
    The owner can terminate the agreement if:
    • The renter violates the contract terms.
    • The vehicle is used for illegal activities.
    • The renter fails to make payments on time.
    • The vehicle is found damaged beyond permissible limits.
    • The renter provides false information/documents.
  2. By the Renter
    The renter can terminate the agreement if:
    • The vehicle is not in the promised condition.
    • There are issues with vehicle performance.
    • The owner violates contract terms.
    • There is an emergency situation requiring early return.
  3. Notice Period for Termination
    • A specific notice period (e.g., 24 hours, 3 days) should be mentioned.
    • If terminated early, a penalty may apply based on the agreement.
  4. Penalties for Breach of Contract
    • Deduction from the security deposit.
    • Additional charges if damages exceed the security deposit.
    • Legal action in case of fraud or illegal activities.
  5. Final Vehicle Inspection
    • The owner inspects the vehicle for damages before accepting the return.
    • Any extra charges (if applicable) must be paid by the renter.
  6. Refund Process
    • If all conditions are met, the security deposit is refunded within the agreed timeframe.
    • Refund deductions should be clearly communicated.

7. Additional Considerations

  • Mechanical Warranty: Rental companies are responsible for ensuring vehicles are in good working condition.
  • Returning the Vehicle: The vehicle should be returned in the same condition as rented, at the agreed location and time.

1. Mechanical Warranty

The rental company must ensure that all vehicles are in good working condition before they are rented out. Below are the key steps to follow:

1.1 Pre-Rental Inspection

  • Perform a full vehicle inspection before renting it out.
  • Check the engine, brakes, battery, tires, and fluid levels.
  • Ensure all lights, indicators, and wipers are working.
  • Take photos or videos of the vehicle’s condition before handing it to the customer.

1.2 Regular Maintenance

  • Follow a scheduled servicing plan for all rental vehicles.
  • Change engine oil, inspect brakes, and check all mechanical parts regularly.
  • Keep records of all maintenance and repairs done on each vehicle.

1.3 Emergency Support

  • Provide a 24/7 emergency helpline for customers in case of breakdowns.
  • Offer roadside assistance for issues like flat tires, dead batteries, or accidents.
  • Have a replacement vehicle policy if a rental vehicle becomes unusable.

1.4 Warranty Terms

  • Clearly mention in the rental agreement who is responsible for any mechanical failure.
  • If the failure is due to normal wear and tear, the rental company covers repairs.
  • If damage is due to the renter’s negligence, they must bear the repair costs.

2. Returning the Vehicle

The customer must return the vehicle in the same condition as it was rented. Follow these steps to ensure a smooth return process:

2.1 Agreed Location & Time

  • The vehicle must be returned at the specified location (rental office or designated drop-off point).
  • Customers should return it on or before the agreed time to avoid late fees.

2.2 Vehicle Condition Check

  • Perform a post-rental inspection to compare the vehicle’s condition before and after use.
  • Check for any new scratches, dents, or damages.
  • Inspect the fuel level, as per the rental agreement (full tank return policy, if applicable).

2.3 Cleaning & Hygiene

  • The customer must return the vehicle in a clean condition (inside and outside).
  • If the vehicle is excessively dirty, a cleaning fee may be charged.

2.4 Late Return & Extension Policy

  • If a customer is late, additional charges may apply per hour or per day.
  • If they need an extension, they should inform the rental company in advance to avoid penalties.

2.5 Security Deposit Refund

  • If there are no damages or violations, the security deposit should be refunded immediately.
  • If damages are found, the repair cost will be deducted before the refund.