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Motor Law regarding Renting of Private Vehicle


10-May-2023 (In Motor Accident Law)
Dear Sir, From a legal perspective, is it permissible to rent my private vehicle to another person in exchange of some money. That person will be using the vehicle only for personal travel. If the above is not permissible from various angles such as insurance, motor law, can any workaround agreement be made between me and that person to allow this deal ?
Answers (2)

Answer #1
505 votes
You have to seek permission of your insurance company, usually such requests will not be entertained by them. You may have private agreement between you and your prospective another person who is willing to hire your vehicle, any how it is a risky job.
Answer #2
955 votes
From a legal perspective to rent your private vehicle to another person in exchange of some money, amounts to use of your vehicle for the commercial purpose. It is permissive to do so, subject to payment of tax as required under the Motor Vehicle Act. Don't circumvent the law, it is an offence also.

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