Renting private vehicles to others for money or any other form of compensation is punishable under the Motor Vehicle Act.
Following the horrific accident and death of five medical students in Kerala’s Alappuzha, concerns and confusion have arisen regarding lending private vehicles to friends and relatives. The accident occurred on December 2 when their vehicle skidded and hit a Kerala State Road Transport Corporation (KSRTC) bus. The vehicle belonged to the brother of one of their friends.
After the incident, a Motor Vehicle Department official had stated that it was illegal to lend vehicles to friends and vehicles as there were media reports of an alleged financial transaction between the vehicle owner and students. This led to confusions as sharing vehicles is common among friends and relatives.
On December 24, Kerala MVD put a video on their Facebook page, explaining the law behind it.
The warning issued by the MVD:
Renting private vehicles to others for money or any other form of compensation is punishable under the Motor Vehicle Act. The Motor Vehicle Department can cancel the registration of such private vehicles, under section 55 of the Motor Vehicle Act, 1988.
However, It is not illegal for the family members of the private vehicle owner to use the vehicle regularly. Similarly, giving the vehicle to friends and relatives in an emergency situation, without involving any compensation is also legal. However, vehicles with eight or more seats should not be used this way.
According to Dilu AK, Regional Transport Officer (RTO), Alappuzha, if the private vehicle is an eight seater or above the Kerala MVD has to collect an affidavit from the owner, which ensures the vehicle is only used by the immediate family, before it is registered. This practice began in the year 2000 after a directive by the public transport commissioner.
It is illegal to regularly drop off people in airports, railway stations or any tourist destination and to give advertisements for vehicle rent in the media or other platforms.
The law does not favour private vehicles to be used as rental cars. However, under the Motor Vehicle Act, there is an option for vehicles to be rented out under the ‘rent a cab’ provision. For this, vehicle owners must obtain the appropriate license as per the rent-a-cab scheme, 1989, and for renting motorcycles, the rent-a-motorcycle scheme 1997.
For renting cars: The owner or the company needs to have an All India Permit (AIP), with not less than 50 and other related facilities.
For renting motorcycles: The owner must register at least 5 vehicles as transport vehicles. Additionally, these vehicles must display their registration number on a black background with yellow letters.
The legally approved rented vehicles have fitness certificates, permits and insurance that also cover the protection of the customer.