Illegal To Lend Car To Friends, Relatives? Transport Commissioner Explains!

The Motor Vehicle Department of Kerala, and its officials often create headlines. This time, they are in the news for making a clarification/explanation regarding using a kin’s vehicle. The Transport Commissioner Ch. Nagaraju, while talking to Mathrubhumi, went vocal about the legalities of lending our cars to friends or relatives. He seems to have some interesting points to make.

He says that there is no legal complications involved in borrowing a friend’s car in an emergency situation. However, we cannot do the same with vehicles with seating capacities of eight or more. In other words, small cars can be borrowed ‘occasionally’. However, using private vehicles that someone else owns, on a regular basis would be considered illegal. Emergencies will always be respected though.

Now you might wonder if it is right to use the vehicle that your parents or family owns. Well, you can do that. Private vehicles are registered for use by the owners and their families. There is no string of law preventing the family members from using those. However, the case is not the same for friends and relatives.

According to our laws, handing over a private vehicle for a reward is a criminal offence. This means you cannot lend out private registered vehicles as taxis or rent-a-car inventory. In another instance, the Transport Department reportedly made a statement that finding a private vehicle with someone who is not the owner’s family will be considered an act involving monetary gains even if there are none, and due charges will be filed against the accused. This seems to be an attempt to null out the instances of people casually borrowing cars and SUVs owned by their kin.

What About The Insurance Coverage?

In the event of an accident occurring when the vehicle is not being driven by its owner/ family, the insurance company could refuse to provide compensation. To make a successful claim, it would be required to prove that the journey was for the owner’s purpose and that the car was not being rented out. Most policy providers have strict criteria to prevent misuse of claims on private vehicles.

What Happens To Permit And Fitness Of White Plate Taxis?

The transport commissioner says that it is easy to detect a private vehicle being used by someone else for monetary gains ( in other words, rentals) This practice itself is a violation of permit conditions and could attract a fine of Rs 6000. Charges can be filed for permit and fitness violations against the RC owner. In case of violations being repeated, the fine amount would be doubled as well. It could even lead to the cancellation of registration for up to 6 months. Violating this could lead to the registration being completely revoked and vehicle getting impounded.

MVD’s Inspections To Unsettle Public Peace?

For anyone asking this question, the Motor Vehicles Department has made it very clear that their checks will not unsettle public peace or cause inconvenience. The goal will be confined to curbing illegal taxis alone. It is no secret that there are individuals renting out private registered vehicles. This move is targetted at them and not at ordinary citizens. The department will respect borrowing a vehicle from a friend or relative in the event of an emergency. No fine will be imposed in such cases.

Is Rent-A-Car Business Legal In Kerala?

Yes, it is. There are several licensed companies operating fleets in the state. IndusGo, EVM Wheels etc are examples. In case you are looking for a self drive car, make sure to go with one of these ‘legal’ companies. This will also ensure proper insurance coverage for your journeys. The number plates of these cars will have Yellow letters against a Black background.

Why Is Kerala Transport Department On High Alert Now?

This extra caution is in the wake of the recent crash in Alappuzha that killed six medical students, after their Chevrolet Tavera ran into a KSRTC bus. Further investigations revealed that this vehicle was overspeeding and was in fact, an illegal rental- a private car hired for rent!

Source: Mathrubhumi