No to renting out personal automobiles

PETALING JAYA: Non-public automobiles which are rented out to be used by others may be seized by the Street Transport Division (JPJ).

It is because renting out personal automobiles for business use is prohibited, dangerous and breaches the phrases of the insurance coverage coverage, the Land Transport Company (Apad) stated.

“Automotive rental corporations have to use for a licence via Apad.

“Whether it is for tourism functions, they’ve to use for a licence from the Tourism, Arts and Tradition Ministry,” stated Apad director-general Datuk Azlan Shah Al Bakri.

He was commenting on The Star’s unique report on a brand new modus operandi by automotive thieves who lease personal automobiles, particularly luxurious automobiles, which are leased to automotive rental corporations.

They then disable the automobiles’ GPS and make away with the automobiles, usually promoting them throughout the border in Thailand or stripping them down for components.

Police are powerless to behave in opposition to the thieves as a result of it’s thought-about a breach of rental contract and never a theft. The victims had been informed to provoke civil fits in opposition to the thieves.

“If the automobiles usually are not registered underneath Apad, then it’s unlawful enterprise and the JPJ can seize any car that’s being rented out,” Azlan Shah stated, including that the automobiles had been additionally thought-about as sewaan haram (unlawful leases), taxi haram (unlawful taxi) or kereta sapu (unlawful constitution service).

He stated licensed automotive rental companies had to purchase their very own business automobiles and never act as a intermediary by leasing personal automobiles to be rented out.

“We’ve got platforms that permit individuals to lease their automobiles out, however they need to observe Apad’s necessities.

“Nevertheless, there are some points that renters disagree on such because the distinction in insurance coverage prices and Puspakom inspection,” Azlan stated.

He suggested the general public to not lease out their personal automobiles to unlicensed rental firms, including that there was the next variety of unlicensed firms than licensed ones.

Some automotive house owners, he stated, even straight rented out their automobiles to others like college college students.

It is a dangerous observe as there will likely be no insurance coverage protection ought to something occur.

Azlan stated Apad was additionally wanting into peer-to-peer automotive sharing laws and was at the moment within the proof of idea (POC) section.

There are 4 automotive rental platforms concerned on this section, specifically Trevo, Klezcar, Wahdah and Xcess.

Peer-to-peer automotive rental is a enterprise mannequin the place house owners lease their automobiles to be rented in order that they’ll make some more money on the aspect.

“The businesses (working the platforms) ought to observe the rules, together with shopping for insurance coverage masking the drivers, passengers and third get together.

“The federal government is not going to management the worth of insurance coverage premium or the quantity of protection.

“That is solely a POC. Legal responsibility is solely on the businesses,” Azlan stated.

The POC was first incepted on Aug 1, 2020, and has been prolonged for a 3rd time till July 31 this yr.

Azlan stated any additional extension could be as much as the JPJ and the Transport Ministry.

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