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01 March 2024

RTA bars car rental companies from keeping passport or identity card of renter

[Image via Shutterstock]

By Wam

The Roads and Transport Authority, RTA, has announced new stipulations for issuing permits for car rental business in Dubai.

"No private documents relating to the renter shall be retained such as the passport or identity card," said Nasir Al-Haj, Director of Commercial Transport Activities, RTA’s Licensing Agency.

"The new conditions aim to improve the business practices of this sector, curb offences and risks, and define the roles and responsibilities of parties associated with this sector," he added.

The regulations provide for allocating designated car permits for rentable cars without impacting public parking, complying with the regular service timing as specified in the manuals, and defining the rights and obligations of the renting party by the renting office.

The conditions state that the insurance agreement made between the car rental company and the insurer shall apply in the event of any accident sustained by the vehicle.

Conditions call for issuing a copy of the vehicle handing over document to the renter showing any damages, if any, before taking receipt of the vehicle.

Stipulations also include refunding the financial deposit to the renter within 30 days from the date of handing back the vehicle to the office in the same payment method.

The Licensing Agency has to be notified in case the business outlet is relocated, and the electronic car rental system has to be activated once the relocation is completed.

"The office is obliged to replace the ageing vehicles as per instructions of the RTA," he noted.

Al-Haj indicated that the revised conditions stipulate that the car rental office has to be approved by the Department of Economic Development, DED, and comply with the applicable procedures set by the department.

The car rental office shall submit a list of disowning the vehicles in the event of abolishing the license. In case of relinquishing the license, the company shall submit an evidence of owning the minimum number of vehicles in the traffic folder before relinquishment.

He concluded that the manufacturing year of the used vehicle shall correspond to the same year of applying for registration.

 "The office is obliged to provide at least 10 vehicles during the initial year in the head office and 3 vehicles in each branch," he said, adding that in case an entity owns vehicles exceeding Dh600,000 in value, the head office shall have at least five vehicles. Finally, the renter is obliged to complete the form manually or online.