Bike and Car Renting Laws in West Bengal

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Posted on | by pritesh K

West Bengal has implemented specific regulations governing bike and car rental services to ensure safety, compliance, and environmental responsibility. Below is a comprehensive overview of these regulations, including policies, terms, conditions, and other pertinent details.

1. Introduction

The Government of West Bengal has recognized the growing demand for rental vehicles, both two-wheelers and four-wheelers, for personal and commercial use. To address this demand while ensuring public safety and environmental sustainability, the state has established a framework of laws and guidelines for bike and car rental services.

Table of Contents

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

2. Policies

  • Electric Vehicle Adoption: In line with environmental objectives, the West Bengal government mandates the use of electric vehicles (EVs) for all administrative functions. Rental agencies are encouraged to incorporate EVs into their fleets to align with this policy.
  • Operational Approvals: All bike and car rental services must obtain official clearances from the state government to operate within West Bengal. This ensures that only authorized entities provide rental services, maintaining quality and safety standards

1. Electric Vehicle (EV) Adoption Policy

The West Bengal government has a clear directive to promote environmentally friendly transportation.

Steps to comply:

  1. Government Mandate:
    • All government-related administrative transportation must use Electric Vehicles (EVs).
    • Rental agencies are encouraged to add EVs to their fleet.
  2. Rental Agency Compliance:
    • If you operate a rental service, consider including electric bikes and cars to align with the government’s environmental goals.
    • This may help in securing future incentives, approvals, or financial benefits from the government.

2. Operational Approvals for Bike and Car Rentals

All rental businesses must obtain official approvals from the West Bengal government before starting operations.

Steps to obtain approval:

  1. Business Registration:
    • Register your bike or car rental service as a legal business entity.
    • Obtain a Trade License from the local municipal authority.
  2. Transport Department Clearance:
    • Apply for an operating permit from the West Bengal Transport Department.
    • Submit documents such as:
      • Business registration certificate
      • Vehicle registration details
      • Insurance documents
      • Pollution clearance certificates (especially for fuel-based vehicles)
  3. Police & Safety Clearance:
    • Provide driver verification details (if applicable).
    • Obtain a No Objection Certificate (NOC) from local law enforcement.
  4. Compliance with Quality and Safety Standards:
    • Ensure that all vehicles meet safety norms set by the state government.
    • Conduct regular maintenance and vehicle inspections.
    • Maintain proper records of rentals and customer details for security reasons.
  5. Insurance Requirements:
    • All rental vehicles must have comprehensive insurance covering:
      • Accidents
      • Third-party liability
      • Vehicle damage and theft
  6. Digital & Payment Integration:
    • If your rental service operates online, ensure proper compliance with digital payment regulations.
    • Enable secure booking and payment systems.
  7. EV Incentives & Benefits (Optional):
    • If your fleet includes electric vehicles, check for state subsidies or incentives for EV adoption.
    • Apply for charging station setup permissions if you plan to provide charging facilities.

3. Terms and Conditions

  • Rental Agreements: All rentals require a formal agreement outlining the responsibilities of both the renter and the service provider. This includes usage terms, payment details, and liability clauses.
  • Usage Restrictions: Renters must adhere to all applicable traffic laws and regulations. Any violations during the rental period are the sole responsibility of the renter.

1. Rental Agreement

  • Every renter must sign a formal rental agreement before using the vehicle.
  • The agreement will outline:
    • The responsibilities of both the renter and the service provider.
    • The duration of the rental period.
    • The terms of usage and permitted areas for driving.
    • Payment details, including security deposit and refund policies.
    • The renter’s liability in case of damage, theft, or accidents.

2. Eligibility Criteria

  • The renter must be at least 18 years old for bike rentals and 21 years old for car rentals.
  • A valid driving license is mandatory.
  • Renters must provide valid ID proof (Aadhaar, Passport, Voter ID, or any government-approved ID).
  • Only the registered renter is allowed to drive the vehicle (no third-party usage).

3. Usage Restrictions

  • The vehicle must be used only for personal and non-commercial purposes.
  • Renters must adhere to all traffic laws and regulations.
  • Any traffic violations, challans, or fines during the rental period will be the sole responsibility of the renter.
  • The vehicle should not be used for racing, stunts, illegal activities, or off-roading.
  • The maximum distance limit per rental (if applicable) must be followed.

4. Payment & Security Deposit

  • Renters must pay the rental fee upfront before taking the vehicle.
  • A refundable security deposit is required, which will be refunded after returning the vehicle in proper condition.
  • If the vehicle is returned late, additional charges will apply as per the agreed rental rate.
  • Any damage to the vehicle will be deducted from the security deposit or charged separately.

5. Fuel Policy

  • The vehicle will be provided with a certain level of fuel.
  • The renter must return the vehicle with the same level of fuel or pay the difference.
  • If the vehicle is returned with less fuel than provided, refueling charges will apply.

6. Vehicle Condition & Maintenance

  • Renters must inspect the vehicle before taking it and report any existing damages.
  • Any new damages caused during the rental period will be the renter’s responsibility.
  • The vehicle should be returned in the same condition as provided.
  • The renter must not attempt any repairs on the vehicle; instead, they should inform the service provider in case of issues.

7. Cancellation & Refund Policy

  • Cancellations made before the booking start time may be eligible for a refund (based on the cancellation policy).
  • If a cancellation is made after the rental period has started, no refund will be provided.
  • Refunds for security deposits will be processed within 3-7 working days after vehicle inspection.

8. Insurance & Liability

  • All vehicles come with basic third-party insurance.
  • In case of an accident, the renter must inform the service provider immediately.
  • The renter will be responsible for any damages beyond insurance coverage.
  • If the vehicle is stolen or lost during the rental period, the renter will be liable for full compensation.

9. Termination of Agreement

  • The service provider reserves the right to terminate the rental agreement if:
    • The renter violates any terms or conditions.
    • The renter is found driving under the influence of alcohol or drugs.
    • The vehicle is used for illegal purposes.

10. Contact & Support

  • In case of any issues or emergencies, renters should contact the Motoshare customer support team.
  • A dedicated helpline number will be provided for assistance.

4. Eligibility Criteria

  • Age Requirements: Renters must be at least 18 years old for two-wheelers and 21 years old for four-wheelers.
  • Driving License: A valid driving license appropriate for the vehicle category is mandatory. For foreign nationals, an International Driving Permit (IDP) along with the original license is required.

1. Age Requirements

  • Two-Wheelers (Bikes & Scooters): The renter must be at least 18 years old.
  • Four-Wheelers (Cars & SUVs): The renter must be at least 21 years old.

2. Driving License Requirements

  • For Indian Citizens:
    • A valid driving license issued by the Indian government is mandatory.
    • The license must be appropriate for the category of the vehicle (two-wheeler or four-wheeler).
  • For Foreign Nationals:
    • A valid original driving license from their home country.
    • An International Driving Permit (IDP) is required along with the original license.
    • The IDP must be valid for the duration of the rental period.

5. Documents Required

  • For Indian Nationals:
    • Valid driving license
    • Aadhaar card or Passport
    • Recent passport-sized photograph
  • For Foreign Nationals:
    • Original passport with valid visa
    • International Driving Permit (IDP)
    • Recent passport-sized photograph

For Indian Nationals:

  1. Valid Driving License
    • Must be a government-issued driving license.
    • Should be valid and not expired.
    • Both two-wheeler and four-wheeler rentals require the appropriate category license.
  2. Aadhaar Card or Passport
    • Aadhaar card for identity and address verification.
    • If Aadhaar is not available, a Passport can be provided as an alternative.
  3. Recent Passport-Sized Photograph
    • A clear and recent passport-sized photograph is needed.
    • The photograph should be in color with a plain background.

For Foreign Nationals:

  1. Original Passport with Valid Visa
    • The passport must be original and valid.
    • The visa should be valid for the duration of the rental period.
  2. International Driving Permit (IDP)
    • An International Driving Permit is mandatory for renting and driving in India.
    • It must be valid and issued by the home country’s driving authority.
  3. Recent Passport-Sized Photograph
    • A fresh passport-sized photograph is required.
    • It should be clear and meet standard passport photo requirements.

6. Payment Procedures

  • Security Deposit: A refundable security deposit is required at the time of rental. For bikes, the deposit is ₹3,000; for scooties, it’s ₹2,000. This deposit covers potential damages or traffic violations.
  • Rental Charges: Payments can be made via cash, credit/debit cards, or digital wallets. Advance payment for the rental period is typically required.

1. Security Deposit Requirement

  • A refundable security deposit is mandatory before renting any vehicle.
  • Deposit Amounts:
    • Bikes: ₹3,000
    • Scooties: ₹2,000
  • This deposit acts as security against:
    • Any potential damages to the vehicle.
    • Traffic violations incurred during the rental period.

2. Payment Methods

  • Customers can pay using multiple payment options:
    • Cash
    • Credit/Debit Cards (Visa, MasterCard, RuPay, etc.)
    • Digital Wallets (Google Pay, Paytm, PhonePe, etc.)

3. Advance Rental Payment

  • The full rental amount must be paid in advance before the vehicle is handed over.
  • The rental charges depend on the selected vehicle type and rental duration.

4. Deposit Refund Process

  • After the vehicle is returned and inspected, the security deposit is refunded.
  • The refund will be processed if:
    • The vehicle is returned in good condition without damages.
    • There are no pending traffic fines or rule violations.
  • Refund Mode:
    • Cash refunds for cash deposits.
    • Bank transfers or digital refunds for online payments.
    • Refunds usually take 1-3 business days to reflect, depending on the mode of payment.

7. Inclusions and Exclusions

  • Inclusions:
    • One helmet per two-wheeler rental, as mandated by safety regulations.
    • Basic insurance coverage for the vehicle.
  • Exclusions:
    • Fuel costs are borne by the renter.
    • Interstate taxes, if applicable, are the renter’s responsibility.
    • Parking and toll charges incurred during the rental period.

Inclusions (What is included in the rental)

  1. Helmet (For Two-Wheeler Rentals)
    • One helmet is provided per two-wheeler rental.
    • This is a mandatory requirement for safety regulations.
    • Additional helmets can be requested (may be subject to extra charges).
  2. Basic Insurance Coverage
    • The rental vehicle comes with basic insurance.
    • This usually includes third-party liability coverage.
    • It does not cover personal injuries or damages caused by negligence.

Exclusions (What is NOT included in the rental)

  1. Fuel Costs
    • The renter is responsible for fuel expenses.
    • Vehicles are typically provided with a certain fuel level; renters must return them at the same level.
    • Any additional fuel required must be refilled by the renter.
  2. Interstate Taxes
    • If the vehicle is taken to another state, applicable interstate taxes must be paid by the renter.
    • These taxes vary by state and must be settled at border checkposts.
  3. Parking and Toll Charges
    • Any parking fees incurred during the rental period are the renter’s responsibility.
    • Toll charges for highways or expressways must be paid by the renter at toll booths.
    • If an electronic toll collection system (FASTag) is available, the tolls will be deducted, and the renter must reimburse the charges.

8. Renter’s Liability

  • Damage Responsibility: Renters are liable for any damage to the vehicle during the rental period. Costs will be deducted from the security deposit, and any excess amount will be billed to the renter.
  • Traffic Violations: All fines or penalties resulting from traffic violations are the renter’s responsibility.

1. Damage Responsibility

  • The renter is responsible for any damage caused to the vehicle during the rental period.
  • The security deposit will be used to cover the cost of repairs.
  • If the repair cost exceeds the security deposit, the renter must pay the remaining amount.
  • Renters must report any damages immediately to the rental company.
  • The rental company will assess the damage and provide a repair cost estimate.
  • Repairs will be carried out by authorized service providers.
  • If the vehicle is damaged due to a third-party accident, the renter must provide a valid police report.

2. Traffic Violations

  • The renter is responsible for any fines or penalties incurred during the rental period.
  • This includes, but is not limited to:
    • Speeding tickets
    • Parking violations
    • Driving in restricted zones
    • Red light violations
  • The renter must pay the fine directly to the traffic authorities.
  • If the rental company receives a fine notification, the fine amount plus an administrative fee may be charged to the renter.
  • Unpaid fines may result in legal action or a ban on future rentals.

3. Security Deposit & Liability Process

  • The renter provides a security deposit before taking the vehicle.
  • If no damages or fines occur, the full deposit is refunded.
  • If there are damages, repair costs will be deducted from the deposit.
  • If there are fines, they must be cleared before the deposit is refunded.
  • The rental company may provide a breakdown of all deductions before finalizing the refund.

4. Insurance & Coverage

  • Some rental agreements may include insurance coverage for damages.
  • Renters should check the policy to understand what is covered.
  • Insurance does not cover negligence, reckless driving, or unauthorized use of the vehicle.
  • Any claim under insurance must follow the company’s procedures.

5. Reporting & Communication

  • Renters must immediately report any accidents, damages, or fines.
  • Failure to report incidents may result in additional charges.
  • The rental company will provide instructions on how to proceed in case of damage or violations.

9. Vehicle Maintenance and Repairs

  • Routine Maintenance: Rental agencies are responsible for regular maintenance and ensuring vehicles are in good working condition before renting out.
  • Breakdown Assistance: In case of mechanical failure, agencies must provide prompt assistance or a replacement vehicle.

1. Routine Maintenance

Routine maintenance ensures that all rental vehicles are in excellent working condition before being rented out.

Step 1: Regular Inspection

  • Conduct a pre-rental and post-rental inspection.
  • Check for any visible damage, tire pressure, fluid levels, and lights.
  • Ensure the vehicle is clean and properly sanitized.

Step 2: Oil and Fluid Checks

  • Regularly check and change engine oil, transmission fluid, brake fluid, and coolant.
  • Follow manufacturer recommendations for oil change intervals.
  • Top up windshield washer fluid as needed.

Step 3: Tire Maintenance

  • Inspect tires for wear and replace them if the tread is low.
  • Rotate tires periodically to ensure even wear.
  • Maintain proper tire pressure to improve fuel efficiency and safety.

Step 4: Battery Check

  • Test battery health and replace if it shows signs of weakness.
  • Clean battery terminals to prevent corrosion.
  • Ensure the alternator is charging correctly.

Step 5: Brake System Inspection

  • Check brake pads and discs for wear.
  • Replace brake pads if worn out to ensure safety.
  • Flush and replace brake fluid as recommended by the manufacturer.

Step 6: Engine and Transmission Health

  • Monitor engine performance and unusual noises.
  • Change transmission fluid at manufacturer-recommended intervals.
  • Ensure there are no leaks from the engine, transmission, or differential.

Step 7: Lights, Wipers, and Electronics

  • Ensure all lights (headlights, brake lights, indicators) are working.
  • Replace faulty bulbs immediately.
  • Check windshield wipers for wear and replace them when needed.

Step 8: Interior and Exterior Care

  • Keep the interior clean, ensuring seats, seat belts, and air conditioning are in working condition.
  • Regularly wash and wax the vehicle to maintain paint and avoid rusting.

Step 9: Emission and Environmental Checks

  • Ensure compliance with local emission standards.
  • Conduct pollution checks and obtain necessary certifications.

Step 10: Keep a Maintenance Log

  • Maintain detailed records of each vehicle’s maintenance history.
  • Track servicing dates, repairs, and part replacements.

2. Breakdown Assistance

If a rental vehicle breaks down, providing quick assistance is crucial for customer satisfaction.

Step 1: Set Up a Customer Support Helpline

  • Provide customers with a 24/7 emergency contact number.
  • Ensure they have clear instructions on what to do in case of a breakdown.

Step 2: Initial Troubleshooting

  • Instruct the customer to check basic issues (e.g., battery, fuel level, tire pressure).
  • Guide them on simple fixes like restarting the car or changing a spare tire.

Step 3: Dispatch Roadside Assistance

  • Partner with a roadside assistance service to provide on-call support.
  • Send a mechanic to the customer’s location for minor repairs.

Step 4: Provide a Replacement Vehicle

  • If the vehicle cannot be repaired on-site, arrange for a replacement vehicle.
  • Ensure the replacement vehicle is delivered as quickly as possible.

Step 5: Tow and Repair the Broken Vehicle

  • If necessary, arrange for the vehicle to be towed to the nearest service center.
  • Conduct a thorough inspection and repair before reintroducing it into the rental fleet.

Step 6: Communicate with the Customer

  • Keep the customer informed about the repair status or replacement process.
  • Offer compensation (if applicable) for major inconveniences.

3. Preventive Measures to Avoid Frequent Repairs

  • Use high-quality parts and fluids to extend vehicle life.
  • Train staff to conduct thorough inspections before and after rentals.
  • Implement a strict policy on reckless driving by renters.
  • Install GPS tracking to monitor vehicle performance and detect potential issues.

10. Return Policy

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

1. Timely Return

  • The rented vehicle must be returned at the agreed-upon time and location as mentioned in the rental agreement.
  • Any late return beyond the scheduled time may result in additional charges.
  • Customers are advised to notify Motoshare Online in advance if there is any unavoidable delay in returning the vehicle.

2. Vehicle Condition

  • The vehicle must be returned in the same condition as it was at the time of rental, except for normal wear and tear.
  • Any damage, dents, or mechanical issues caused due to improper use or accidents will be the responsibility of the renter.
  • Customers must ensure the vehicle is clean and free from excessive dirt or spills before returning it.

3. Fuel Policy

  • The vehicle should be returned with the same fuel level as provided at the time of rental.
  • If the fuel level is lower, additional fuel charges may apply based on the fuel difference.

4. Late Return Charges

  • If a customer returns the vehicle late, they may be charged an extra fee per hour or per day as per the rental terms.
  • A grace period of (X minutes/hours) may be allowed (if applicable), after which late fees will be applied.

5. Inspection at Return

  • A Motoshare Online representative will inspect the vehicle at the time of return for any damages, scratches, or missing parts.
  • If any issues are found, the renter may be liable for repair costs.

6. Deposit Refund (if applicable)

  • If a security deposit was taken, it will be refunded after vehicle inspection, provided there are no damages, penalties, or extra charges.
  • Refunds may take X business days to process, depending on the payment method.

7. Early Return Policy

  • If a renter returns the vehicle before the scheduled time, a partial refund (if applicable) will be processed as per the rental terms.
  • Some rental packages may have a no-refund policy for early returns.

8. Reporting Issues

  • If the renter experiences any mechanical issues or breakdowns, they must report it immediately to Motoshare Online.
  • Unauthorized repairs are not allowed without prior approval.

9. Penalty for Violations

  • Any traffic fines, toll charges, or violations during the rental period will be the responsibility of the renter.
  • Smoking, drinking, or carrying illegal substances in the vehicle is strictly prohibited and may lead to additional fines or rental termination.

11. GST Rates for Vehicle Rental Services

  • Taxation: Goods and Services Tax (GST) is applicable on vehicle rental services. The current GST rate is 18% for both bike and car rentals.

1. Applicability of GST on Vehicle Rentals

  • GST is applicable to vehicle rental services, including bike and car rentals.
  • The current GST rate is 18% (9% CGST + 9% SGST or 18% IGST).

2. GST Registration Requirement

  • Mandatory Registration: If the rental service provider’s annual turnover exceeds ₹20 lakh (for most states) or ₹10 lakh (for special category states).
  • Voluntary Registration: Businesses can opt for GST registration even if their turnover is below the threshold to avail input tax credit.

3. GST Rate Structure for Vehicle Rental Services

Type of Rental ServiceGST RateGST Type
Self-Drive Car/Bike Rentals18% (9% CGST + 9% SGST)Forward Charge
Chauffeur-Driven Rentals18% (9% CGST + 9% SGST)Forward Charge
Luxury Car Rental Services18% or 28% (for certain luxury cars)Forward Charge
  • Self-Drive Rentals: Charged at 18% GST.
  • Chauffeur-Driven Rentals: Includes driver charges; taxed at 18% GST.
  • Luxury Vehicles: If categorized as a luxury vehicle, GST can be 28%, depending on engine capacity.

4. Input Tax Credit (ITC) on Vehicle Rentals

  • Businesses registered under GST can claim ITC on GST paid for vehicle rentals, provided:
    • The rental service is used for business purposes.
    • The invoice is properly documented.
  • ITC is not allowed if the vehicle is used for personal purposes.

5. GST on Reverse Charge Mechanism (RCM)

  • If a business rents a vehicle from an unregistered supplier, GST must be paid by the recipient under Reverse Charge Mechanism (RCM) at 18%.

6. GST Invoicing Rules for Vehicle Rental Services

A proper GST invoice must include:

  • GSTIN of Supplier & Recipient
  • Invoice Number & Date
  • Description of Service (e.g., “Self-drive car rental for 3 days”)
  • Taxable Value & GST Amount
  • Breakdown of CGST, SGST, or IGST

7. Filing GST Returns for Vehicle Rental Services

  • Monthly or Quarterly GST Return Filing:
    • GSTR-1 (Outward Supplies)
    • GSTR-3B (Tax Payment & ITC Claim)
    • GSTR-9 (Annual Return)

8. Place of Supply Rules (IGST vs CGST/SGST)

  • Same State Rental: CGST (9%) + SGST (9%) applies.
  • Inter-State Rental: IGST (18%) applies.

9. GST Exemptions & Special Cases

  • If a vehicle rental service is provided to the government or a specified non-profit organization, it may qualify for GST exemption under certain conditions.
  • Employee Transport Services provided by employers may be exempt in some cases.

10. Penalties for Non-Compliance

  • Late Filing Penalty: ₹50 per day (₹25 CGST + ₹25 SGST) for normal filers.
  • Wrongful ITC Claim: 100% penalty of the tax amount.
  • Failure to Register for GST (if applicable): 10% of tax due or ₹10,000 (whichever is higher).

12. Insurance and Mechanical Warranty

  • Insurance Coverage: Basic insurance is included, covering third-party liabilities. Renters may opt for additional coverage at extra cost.
  • Mechanical Warranty: Rental agencies must ensure that all vehicles are mechanically sound and provide necessary warranties against mechanical failures not caused by the renter.

1. Insurance Coverage

Motoshare should provide basic insurance to ensure safety and compliance. Here’s how to structure it:

Step 1: Include Basic Insurance

  • Coverage Type: Third-party liability insurance (covers damage to other vehicles or property).
  • Responsibility: The rental agency (Motoshare) should include this in the base rental cost.
  • Coverage Limit: Define the maximum liability coverage (e.g., ₹2,00,000 for damages).

Step 2: Offer Additional Insurance Options

  • Collision Damage Waiver (CDW): Covers damage to the rental vehicle.
  • Personal Accident Insurance (PAI): Covers medical expenses for the renter and passengers.
  • Roadside Assistance Insurance: Covers towing and on-road repairs.
  • Comprehensive Insurance: Covers theft, fire, and natural disasters.
  • Pricing Structure: Charge extra for each additional coverage (e.g., ₹100-₹500 per day depending on the coverage).

Step 3: Insurance Exclusions

  • Damages caused due to reckless driving or intoxication.
  • Loss of personal belongings.
  • Unauthorized driver usage (if someone other than the renter drives the vehicle).
  • Driving outside permitted areas.

Step 4: Claim Process

  • In case of an accident: The renter should report within 24 hours.
  • Required Documents: FIR, photos of the accident, driving license, rental agreement.
  • Insurance Processing Time: Define a period (e.g., 7-14 days for claims settlement).

2. Mechanical Warranty

To ensure that vehicles remain in good condition, Motoshare must establish clear mechanical warranty policies.

Step 1: Pre-Rental Vehicle Inspection

  • Conduct a mandatory inspection before handing over the vehicle.
  • Check for engine performance, brakes, tires, oil levels, battery condition.
  • Provide the renter with an inspection checklist for transparency.

Step 2: Mechanical Warranty Coverage

  • Covers engine, transmission, battery, brakes, suspension, and fuel system failures.
  • Rental agencies must cover all repair costs for failures not caused by the renter.
  • Warranty does not cover damages due to negligence (e.g., off-road driving, lack of oil change).

Step 3: Renter’s Responsibility

  • Regular fuel check and proper vehicle handling.
  • Reporting any mechanical issues immediately.
  • Returning the vehicle in the same condition.

Step 4: Roadside Assistance for Mechanical Failures

  • Motoshare should provide free roadside assistance in case of unexpected breakdowns.
  • Offer replacement vehicles if repairs take more than a certain time (e.g., 3-5 hours).

Step 5: Handling Mechanical Failures

  • Renter should call customer support and report the issue.
  • Motoshare will send a mechanic or tow the vehicle.
  • If repairable, fix it immediately; otherwise, arrange for a replacement vehicle.

Step 6: Exclusions in Mechanical Warranty

  • Flat tires, lost keys, battery drain due to user negligence.
  • Accidents due to rash driving.
  • Misuse, such as racing or unauthorized modifications.

3. Documentation & Agreement

  • Rental Agreement must clearly outline insurance and mechanical warranty terms.
  • Renters must sign an agreement accepting these conditions before renting.
  • Display insurance coverage options during the booking process.

4. Additional Charges for Extended Protection

  • Offer premium mechanical coverage for a small daily fee.
  • Charge a deposit that covers minor damages (refundable if no issues are reported).
  • Clearly define repair and claim costs if the renter is found responsible.

13. Additional Charges

  • Fuel Cost: Renters are responsible for refueling. Vehicles are provided with a full tank and should be returned similarly.
  • Interstate Taxes: If the vehicle is driven across state borders, any applicable taxes are to be paid by the renter.
  • Parking and Toll Charges: All such expenses during the rental period are the responsibility of the renter.

1. Fuel Cost

  • The vehicle is provided with a full tank of fuel at the start of the rental.
  • The renter must refill the tank before returning the vehicle.
  • If the vehicle is returned with less fuel, the renter will be charged for the missing fuel as per the provider’s rates.

2. Interstate Taxes

  • If the renter drives the vehicle across state borders, additional state taxes may apply.
  • The renter is responsible for paying these taxes at the state checkpoints.
  • Any penalties due to unpaid interstate taxes will be charged to the renter.

3. Parking and Toll Charges

  • Any parking fees incurred during the rental period must be paid by the renter.
  • Any toll charges (e.g., expressways, national highways, etc.) are to be borne by the renter.
  • If the vehicle has an electronic toll payment system, charges will be deducted from the renter’s deposit or billed separately.

14. Exclusions

  • Unauthorized Usage: Using the vehicle for activities like racing, towing, or any illegal purposes is prohibited and voids insurance coverage.
  • Subletting: Renters are not allowed to sub-rent the vehicle to another party.

1. Unauthorized Usage

These are activities that are strictly prohibited when using the rented vehicle:

1.1. Illegal Activities
  • Using the vehicle for any criminal activities or illegal purposes is not allowed.
  • Violating traffic laws, smuggling, or transporting illegal goods is strictly prohibited.
1.2. Racing & Speeding
  • Racing, speed trials, drifting, or stunt driving are not allowed.
  • The rental company has the right to take action if the vehicle is used for reckless driving.
1.3. Towing & Carrying Excess Load
  • The vehicle cannot be used for towing, pulling trailers, or carrying a weight beyond its capacity.
  • Overloading the vehicle may result in damage, penalties, or insurance voidance.
1.4. Insurance Voidance
  • If a renter engages in any unauthorized activity, the insurance coverage will not apply.
  • The renter will be fully responsible for any damage or legal consequences.

2. Subletting

This means that the renter cannot give the vehicle to someone else for renting or use.

2.1. No Transfer of Rental Rights
  • The person who rented the vehicle must be the only one using it.
  • Giving the vehicle to another person (even a friend or family member) for rental or business purposes is not allowed.
2.2. Legal Consequences
  • If a renter sub-rents the vehicle, they will face penalties or legal action.
  • The rental company has the right to terminate the contract immediately.
2.3. Liability in Case of Damage
  • If an unauthorized person damages the vehicle, the renter is fully responsible for all costs.
  • Insurance will not cover damage caused by a third party using the vehicle without permission.