Bike and Car Renting Laws in Meghalaya

Posted on February 19, 2025February 19, 2025 | by pritesh K

Table of Contents

1. Introduction

In an effort to boost tourism and provide convenient transportation options, the Government of Meghalaya has established a framework for bike and car rental services. These regulations aim to ensure safety, standardize operations, and protect the interests of both service providers and users.

1. Licensing Requirements:

Aggregator License: Entities intending to operate as taxi aggregators or bike-taxis must obtain a license from the Licensing Authority. This applies to individuals, firms, or companies.
Application Process: Applicants must submit a written application in the prescribed format, accompanied by necessary documents and fees. The application should include proof of company registration, GST registration, financial statements, and details of the proposed fleet.

2. Vehicle Standards:

Fitness and Documentation: All vehicles must possess valid fitness certificates, insurance, and Pollution Under Control (PUC) certificates. They should also operate under permits granted under relevant provisions of the Motor Vehicles Act, 1988.
Safety Features: Vehicles are required to have GPS or GPRS-based tracking devices, first aid kits, and emergency communication systems. For bike-taxis, crash helmets for both rider and pillion are mandatory.

3. Driver Qualifications:

Licensing and Background: Drivers must hold valid licenses for the respective vehicle types and have a clean criminal record. They should also possess adequate knowledge of local routes and traffic regulations.
Uniform and Conduct: Drivers are expected to wear uniforms approved by the Licensing Authority and maintain a polite and courteous demeanor with passengers.

4. Operational Guidelines:

Fare Structure: Aggregators are required to display fare rates and provide fare estimators on their platforms. They can charge waiting charges, flag-down charges, and night charges as approved by the Transport Department.
Grievance Redressal: A mechanism must be in place for receiving and addressing passenger feedback and complaints. This includes maintaining a 24×7 control room and providing helpline numbers inside vehicles.

5. Permit and Registration:

Vehicle Registration: Vehicles used for commercial purposes must be registered as transport vehicles under the Motor Vehicles Act, 1988. This includes obtaining the necessary permits for operation within the state.
Permit Categories: Various permit categories exist, such as All India Permit, National Permit, and State Carriage Permit, each with specific conditions and fees.

6. Compliance and Enforcement:

Inspections: The Licensing Authority, through designated officers, may conduct inspections to ensure compliance with the regulations. Non-compliance can lead to suspension or cancellation of the license.
Penalties: Aggregators and drivers found violating the regulations may face penalties, including fines and suspension of operations.

2. Policies

Registration and Licensing: All rental service providers must be registered with the Meghalaya Transport Department and possess a valid license to operate.
Vehicle Standards: Vehicles offered for rent must adhere to safety and emission standards as prescribed by the state authorities.
Insurance: Comprehensive insurance coverage for all rental vehicles is mandatory, covering both the vehicle and the occupants.

1. Registration and Licensing

Step 1: Ensure that all rental service providers are registered with the Meghalaya Transport Department.
- This includes completing any necessary paperwork, paying registration fees, and fulfilling the requirements set by the department.
Step 2: Obtain a valid operating license from the Meghalaya Transport Department.
- This license confirms the legality of the business and ensures the provider meets all regulatory requirements for renting out vehicles.
Step 3: Keep a copy of the registration and license on hand for verification. This may be required during inspections or as part of routine checks.

2. Vehicle Standards

Step 1: Ensure that all rental vehicles meet state safety standards.
- This may include checking for functioning brakes, lights, mirrors, and seat belts, and ensuring the vehicle’s overall roadworthiness.
Step 2: Make sure vehicles comply with emission standards set by the Meghalaya government.
- Vehicles should have valid pollution control certificates and meet prescribed emission limits.
Step 3: Perform regular maintenance and safety checks on all rental vehicles.
- This includes periodic inspections, oil changes, tire checks, and other essential maintenance to ensure the vehicle remains in good condition.

3. Insurance

Step 1: Ensure all rental vehicles have comprehensive insurance coverage.
- This coverage should protect the vehicle against damage, theft, or accidents.
Step 2: Verify that the insurance also covers the occupants of the vehicle.
- This may include medical coverage for any injuries that occur during an accident or mishap.
Step 3: Keep updated records of the insurance policies for each vehicle.
- This documentation should be available for review by the authorities or customers upon request.

3. Terms and Conditions

Rental Agreement: A formal rental agreement must be signed between the service provider and the renter, detailing the terms of use, rental duration, and liabilities.
Usage Limitations: Vehicles are to be used strictly within the geographical boundaries of Meghalaya unless explicit permission for interstate travel is granted by the service provider.
Prohibited Activities: Using rental vehicles for illegal activities, racing, or subletting to another individual is strictly prohibited.

1. Rental Agreement:

Step 1: Both parties, the service provider (company) and the renter, must review the terms and conditions outlined in the rental agreement.
Step 2: The renter and service provider must sign the formal rental agreement.
Step 3: The rental agreement should specify:
- The duration of the rental period.
- Usage guidelines for the vehicle.
- Liabilities and responsibilities of both parties in case of damages, theft, or accidents.
- Rental charges and payment methods.

2. Usage Limitations:

Step 1: The rental vehicles are intended for use only within the geographical boundaries of Meghalaya.
Step 2: If the renter needs to travel outside Meghalaya (interstate travel), they must request permission from the service provider beforehand.
Step 3: The service provider will review the request and decide whether interstate travel is permissible, based on vehicle condition, insurance, and other factors.

3. Prohibited Activities:

Step 1: The renter is prohibited from using the rental vehicle for any illegal activities such as smuggling, theft, or engaging in criminal acts.
Step 2: Racing or using the vehicle for competitive driving is prohibited.
Step 3: The renter cannot sublet or transfer the vehicle to another individual or entity without prior approval from the service provider.
Step 4: In case of violation of any prohibited activities, the renter will be held liable for damages, and the agreement will be terminated immediately.

4. Eligibility Criteria

Age Requirement: Renters must be at least 18 years old to rent a bike and 21 years old to rent a car.
Driving License: A valid driving license appropriate for the vehicle category is mandatory.
Identification Proof: Government-issued identification, such as Aadhar card, Voter ID, or Passport, is required at the time of rental.

1. Age Requirement

Bike Rentals: Renters must be at least 18 years old to rent a bike.
Car Rentals: Renters must be at least 21 years old to rent a car.

2. Driving License

Renters must hold a valid driving license.
The driving license should be appropriate for the vehicle category:
- A bike rental requires a valid two-wheeler license.
- A car rental requires a valid four-wheeler license.

3. Identification Proof

Renters must provide government-issued identification at the time of rental for verification.
- Accepted identification types:
  - Aadhar Card
  - Voter ID
  - Passport

5. Documents Required

For Individuals:
- Valid Driving License
- Government-issued Photo ID
- Recent Passport-sized Photograph
For Corporates:
- Company Registration Certificate
- Authorization Letter for the Individual Renting
- Official ID Card of the Representative

For Individuals:

Valid Driving License
- Ensure that the driving license is valid and not expired.
- The license must be issued by a government authority and should match the person renting the vehicle.
Government-issued Photo ID
- This can be a passport, Aadhaar card, voter ID, or any other government-issued identification with a photograph.
- Make sure the photo ID is clear and readable.
Recent Passport-sized Photograph
- Provide a clear and up-to-date passport-sized photo.
- Ensure the photograph is well-lit and follows the standard format for passport-sized photos.

For Corporates:

Company Registration Certificate
- A copy of the certificate of incorporation or registration of the company.
- This document verifies the legal existence of the business entity renting the vehicle.
Authorization Letter for the Individual Renting
- A letter from the company authorizing the individual to rent the vehicle on behalf of the company.
- The letter should be signed by an authorized representative of the company.
Official ID Card of the Representative
- The official ID card of the representative renting the vehicle.
- This can include a company-issued ID card or any other identification that verifies the person’s role in the company.

6. Rental Agreement Components

Vehicle Details: Make, model, registration number, and condition report.
Renter Details: Full name, address, contact information, and identification proofs.
Rental Terms: Duration, rental rates, security deposit, and payment terms.
Liabilities and Responsibilities: Damage policies, maintenance responsibilities, and usage restrictions.

1. Vehicle Details

Make: The brand or manufacturer of the vehicle (e.g., Honda, Toyota).
Model: The specific model of the vehicle (e.g., Civic, Corolla).
Registration Number: The official number plate or vehicle registration ID.
Condition Report: A detailed description of the vehicle’s current condition, including any existing damage, scratches, or maintenance issues.

2. Renter Details

Full Name: The complete name of the person renting the vehicle.
Address: The permanent residential address of the renter.
Contact Information: A valid phone number and email address for communication.
Identification Proofs: Government-issued identification such as Aadhar card, passport, or driving license to verify the renter’s identity.

3. Rental Terms

Duration: The time period for which the vehicle will be rented (e.g., one day, one week, or monthly).
Rental Rates: The agreed-upon cost of renting the vehicle per day, week, or month.
Security Deposit: The refundable amount paid upfront to cover any damages or violations during the rental period.
Payment Terms: Details regarding how the renter will pay (e.g., upfront payment, payment via credit card, bank transfer, etc.).

4. Liabilities and Responsibilities

Damage Policies: The rules regarding who is responsible for damages that may occur to the vehicle during the rental period.
Maintenance Responsibilities: Clarifying who is responsible for regular maintenance, fuel, or any breakdowns during the rental.
Usage Restrictions: Any restrictions on the use of the vehicle, such as prohibited areas (off-roading), driving under the influence of alcohol, exceeding a certain distance, or allowing others to drive the vehicle.

7. Inclusions and Exclusions

Aspect	Inclusions	Exclusions
Fuel Cost	Generally excluded; vehicles are provided with a certain fuel level, and renters are expected to refuel at their own expense.	Fuel consumed during the rental period.
Interstate Taxes	Excluded; renters must bear any interstate taxes if applicable.
Parking Charges	Excluded; renters are responsible for any parking fees incurred.
Toll Taxes	Excluded; renters must pay any toll charges during the rental period.
Mechanical Warranty	Included; service providers ensure vehicles are in good working condition and address any mechanical failures not caused by renter negligence.
Helmet Provision	Included; at least one helmet is provided with bike rentals.	Additional helmets may be available at extra cost.

1. Fuel Cost

Inclusion:
- Generally, fuel is not included in the rental cost.
- Vehicles are provided with a certain fuel level.
Exclusion:
- Renters are responsible for refueling the vehicle at their own expense during the rental period.
- Any fuel consumed during the rental is the renter’s responsibility.

2. Interstate Taxes

Exclusion:
- Renters must bear any applicable interstate taxes if they drive the vehicle across state lines.

3. Parking Charges

Exclusion:
- Renters are responsible for any parking fees incurred during the rental period.

4. Toll Taxes

Exclusion:
- Renters must pay any toll charges they incur during their rental period.

5. Mechanical Warranty

Inclusion:
- Vehicles are serviced to ensure they are in good working condition.
- Service providers will address any mechanical failures that are not caused by renter negligence (e.g., wear and tear, manufacturer issues).
Exclusion:
- Renters are responsible for paying for repairs if the mechanical failure is due to their negligence or misuse of the vehicle.

6. Helmet Provision

Inclusion:
- At least one helmet is provided with bike rentals.
Exclusion:
- If additional helmets are needed, they may be available at an extra cost.

8. Payment Procedure

Security Deposit: A refundable security deposit is required at the time of rental.
Rental Charges: Payment for the entire rental duration must be made upfront.
Payment Modes: Acceptable payment methods include cash, credit/debit cards, and approved digital wallets.

Security Deposit:

A refundable security deposit is required at the time of renting the item (bike/car).
The deposit will be returned to the customer after the rental period, provided the rented item is returned in good condition without damage or loss.

Rental Charges:

The full rental charges for the entire rental duration must be paid upfront.
The rental charges are based on the type of vehicle, rental period (hourly, daily, weekly, etc.), and other factors.

Payment Modes:

Cash: Payment can be made in cash at the time of renting.
Credit/Debit Cards: Accepted for payments during the booking process or at the time of rental.
Approved Digital Wallets: Digital wallets such as Paytm, Google Pay, or other approved options can be used for payment.

9. Goods and Services Tax (GST) Rates

Bike Rentals: 18% GST is applicable.
Car Rentals: 18% GST is applicable.

Step 1: Identify the service

The GST applies to the rental services of bikes and cars provided to customers.

Bike Rentals: The GST rate is applicable to bike rentals.
Car Rentals: The GST rate is applicable to car rentals.

Step 2: Determine the GST rate

For both bike and car rentals, the applicable GST rate is 18%.

Bike Rentals: 18% GST is applicable.
Car Rentals: 18% GST is applicable.

Step 3: Understand GST Calculation

The GST is calculated as a percentage of the rental price charged to the customer.

For example, if the rental cost for a bike or car is ₹1000:

GST Calculation:
- 18% of ₹1000 = ₹180

Therefore, the customer will pay ₹1000 for the rental and ₹180 as GST, making the total amount ₹1180.

Step 4: GST Collection and Payment

As a rental service provider, you need to collect the 18% GST from your customers along with the rental fee.
You must pay the collected GST to the government as part of your tax filing process.

Step 5: GST Invoices

A GST-compliant invoice should be provided to customers, which includes:
- Rental service charges (base price).
- GST amount (18%).
- Total amount (base price + GST).

Step 6: GST Return Filing

You must file periodic GST returns (monthly/quarterly) detailing the GST collected from customers and remit it to the government.

10. Renter’s Liability

Damage to Vehicle: Renters are liable for any damage caused to the vehicle due to negligence or misuse.
Traffic Violations: Any fines or penalties arising from traffic law violations during the rental period are the renter’s responsibility.

1. Damage to Vehicle:

Responsibility: The renter is responsible for any damage caused to the rented vehicle during the rental period.
Negligence or Misuse: If the vehicle is damaged due to the renter’s negligence (such as improper handling or carelessness) or misuse (using the vehicle in ways not intended, like off-roading if not allowed), the renter is fully liable.
Insurance or Deductible: The renter may be required to cover the cost of repairs or deductibles, depending on the insurance policy associated with the rental.
Assessment of Damage: The vehicle’s condition should be thoroughly assessed before and after the rental period, with documentation (photos/videos) to avoid disputes regarding the damage.

2. Traffic Violations:

Responsibility for Fines: The renter is responsible for any traffic law violations committed during the rental period. This includes speeding, parking tickets, running red lights, or any other breach of traffic laws.
Payment of Penalties: If any fines or penalties are issued during the rental period, the renter must pay them directly. The rental company may charge an additional fee for processing the violation on behalf of the renter.
Notifications: The rental company will notify the renter of any fines or violations that occur, either during or after the rental period.
Liability for Legal Actions: If the violation leads to further legal actions (such as a court appearance), the renter is responsible for handling those situations and covering any associated costs.

11. Vehicle Repair and Maintenance

Routine Maintenance: The service provider is responsible for all scheduled and routine maintenance.
Breakdown Assistance: In case of mechanical failure not caused by the renter, the service provider will offer roadside assistance or a replacement vehicle.

1. Routine Maintenance

The service provider should ensure that the vehicles are in good working condition through scheduled and routine maintenance.

Step-by-step:

Inspection: Perform regular inspections to check the condition of key vehicle components (engine, tires, brakes, etc.).
Scheduled Maintenance: Set up regular maintenance intervals (e.g., every 5,000 kilometers or 6 months) for oil changes, tire rotations, brake inspections, etc.
Records: Keep detailed records of all maintenance and repairs done on the vehicle.
Notification to Renters: Notify the renters if any maintenance is due or if there is a service requirement during their rental period.

2. Breakdown Assistance

If the vehicle breaks down and the issue is not caused by the renter (e.g., mechanical failure), the service provider should step in to provide immediate assistance.

Step-by-step:

Immediate Contact: The renter should immediately contact the service provider or roadside assistance hotline in case of a breakdown.
Diagnosis: The service provider will diagnose the problem over the phone or via a mobile app and determine if immediate roadside assistance or vehicle replacement is necessary.
Roadside Assistance: If possible, a roadside assistance team will be dispatched to fix minor issues such as flat tires, battery jump-starts, or other quick fixes.
Replacement Vehicle: If the issue cannot be resolved on the spot, the service provider will offer a replacement vehicle.
Vehicle Pickup: If a replacement vehicle is provided, arrangements should be made to tow or collect the broken vehicle.
Return or Refund: If the vehicle breakdown is severe, and the renter decides not to continue the rental, the service provider may offer a partial refund or free rental time for the inconvenience.

3. Documentation and Transparency

The service provider should maintain transparency by ensuring all actions are documented.

Step-by-step:

Incident Report: For every breakdown or maintenance service, an incident report should be created detailing the nature of the issue, the action taken, and the final resolution.
Customer Communication: Keep the renter informed at all stages, ensuring they know what is happening and what is expected.
Feedback Mechanism: After the issue is resolved, provide the renter with an option to give feedback on their experience with the breakdown assistance.

12. Vehicle Return Policy

Timely Return: Vehicles must be returned at the agreed-upon time and location. Late returns may incur additional charges.
Condition: The vehicle should be returned in the same condition as at the time of rental, barring normal wear and tear.

1. Timely Return:

Agreed Time and Location: Ensure that the vehicle is returned at the exact time and location specified in the rental agreement.
Late Returns: If the vehicle is returned late, additional charges may apply. These charges are often calculated based on the length of the delay and the rental agreement.

2. Condition of Vehicle:

Same Condition: The vehicle should be returned in the same condition as when it was rented. This means it should be clean and free from damage.
Normal Wear and Tear: Normal wear and tear, such as slight tire wear or minor scratches, is expected and will not result in additional charges. However, damage that goes beyond regular use may result in charges for repairs or replacement.
Cleaning: Depending on your policy, the vehicle may need to be returned cleaned or in the condition it was provided (no dirt, trash, etc.).

13. Exclusions

Personal Accident Insurance: Renters are advised to have their own personal accident insurance, as it is not covered by the rental agreement.
Unauthorized Usage: Use of the vehicle for commercial purposes, racing, or by an unauthorized driver is prohibited and may lead to penalties.

1. Personal Accident Insurance:

Responsibility of the Renter: Renters are advised that they should have their own Personal Accident Insurance in place.
Non-Coverage: This type of insurance is not included as part of the vehicle rental agreement.
Recommendation: Renters are encouraged to either purchase personal accident insurance or check if their existing insurance policy covers them for accidents while driving a rental vehicle.

2. Unauthorized Usage:

Prohibited Uses: The rental vehicle must not be used for:
- Commercial purposes (e.g., using the vehicle for delivery or as a taxi).
- Racing or speed tests (such as using the vehicle in competitive events or speed trials).
- By an unauthorized driver (anyone who is not listed on the rental agreement).
Consequences: Violating this policy can lead to:
- Penalties imposed on the renter.
- Termination of the rental agreement.
- Liability for damages in case of an accident or vehicle misuse during unauthorized usage.