New Car Rental Regulations: Comprehensive insurance and consumer protection enhanced

In a regulatory move aimed at consumer protection, the Undersecretary of the Ministry of Commerce and Industry, Ziad Al-Najem, announced a reorganization of car rental contracts.

The new regulations mandate comprehensive insurance, clear contract requirements, photo documentation during car handover, and prohibit signing vague financial obligations or blank monetary agreements, ensuring greater transparency for consumers.

Al-Najem emphasized that under the new decision, lessor must provide vehicles in safe, secure, and technically sound conditions, meeting all safety standards and equipped with essential amenities.

Moreover, Al-Najem added that all car rental companies, institutions, and offices must be committed to include the lease contracts with customers through the following conditions.

1. The lessor is obliged to deliver the car in a safe and secure technical condition that meets all safety requirements, and equipped with the necessary luxuries such as emergency tools and spare tires.
2. The condition of the vehicle must be documented before delivery by video or photography and recording notes in the contract, specifying any previous damages.
3. The renter must return the car in its original condition, accounting for normal wear and tear. They are responsible for damages outside the agent’s warranty, including costs for lost keys or documents, as per agency or authority pricing. In case of damage, the agency’s assessment will serve as the official cost reference.
4. The rental day is calculated at 24 hours starting from the time of receipt of the car, and the duration of the delay is calculated, whether in hours or days.
5. In case of an accident, the renter must obtain a repair permit from the Ministry of Interior, pay insurance file fees, and cover the agreed-upon percentage specified in the contract. Repairs must not be made without the lessor’s written consent. If the car is impounded by authorities due to renter-related reasons, the renter is responsible for the daily rental fees during the impound period and any damages incurred.
6. The lessor must provide the renter with a copy of the lease agreement and all related documents, clearly outlining the rights and obligations of both parties. The inclusion of vague clauses is prohibited, and the renter cannot be compelled to sign promissory notes or any financial documents outside the scope of the lease agreement.

Source: Al Rai