MVD (Motor Vehicles Department) compliance is crucial for car rental services to ensure legal operations and customer safety. Here’s an overview of key compliance requirements for car rental services in India:
1. Vehicle Registration & Permits
• Rental cars must be registered under the commercial category (yellow plate).
• Ensure vehicles have a valid transport permit issued by the RTO.
• Self-drive rental cars require an All India Tourist Permit (AITP) if they are rented across states.
2. Insurance & Road Tax
• Vehicles should have commercial vehicle insurance covering third-party liability.
• Payment of road tax and state permits is mandatory as per the state’s transport regulations.
3. Driver & Customer Verification
• Drivers for chauffeur-driven rentals must have a valid commercial driving license.
• For self-drive rentals, renters should provide a valid driving license and identity proof.
4. Safety & Compliance Standards
• All rental vehicles must undergo regular fitness checks and pollution control certification.
• Installation of GPS tracking, speed governors, and panic buttons is mandatory in some states.
5. Contract & Rental Agreements
• Clearly define rental terms, insurance coverage, liabilities, and penalties.
• Maintain digital records of customer agreements and vehicle logs for compliance audits.
6. Adherence to State-Specific Laws
• Different states have varying requirements for self-drive and chauffeur-driven rentals.
• Some states require special permits for intercity or interstate car rentals.
To legally run a car rental service, you must follow MVD rules for vehicle registration, insurance, taxation, and safety. Ensuring compliance with MVD regulations not only avoids legal issues but also builds trust and safety for customers
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