A new era for car rental sectors

  • 12/21/2021
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Moving and traveling between different regions and countries has been linked to benefiting from the basic services provided to the visitor, including car rental services in particular. With the increasing demand for car rental services and the influx of many beneficiaries to rental offices of various sizes, some rental offices suffer from the beneficiary’s procrastination in paying or even their lack of commitment to vehicle insurance procedures and requirements. The beneficiary sometimes complains about the poor quality of the rental cars and even some of the intransigence of some offices and institutions in collecting their dues and charging this beneficiary with additional unexplained or stated fees. Therefore, a new phase and modern era will begin in the car rental sector as the Public Transport Authority confirmed the official start of implementing the first phase on July 25, 2021, of the decision to compel car rental facilities to issue all rental contracts through the “Leasing Contracts” service in the Naql electronic portal, where these licensed car rental entities will issue a unified contract that meets all the legal requirements and clauses, to contribute significantly to preserving the rights of the lessor and the lessee and clarifying the duties of each. On the other hand, this electronic transformation of contracts will enhance the beneficiary’s confidence in the quality of services provided to him and also protect rental companies from any procrastination that may cause disruption to the working and operating mechanism. This unified contract will contribute to alleviating the burden on the relevant judicial authorities resulting from disputes and claims in particular, whether for payment or compensations raised by either party, the beneficiary, and the rental legal entities regardless of their size. In order for establishments and companies of this sector to benefit from the e-contract service for vehicle rental, it must be ensured that the following conditions are met, which is that the rental representative should be a Saudi national, and the age of the vehicle should not exceed five years from the year of manufacture, and it is not permissible to rent more than one vehicle per person. It is also a requirement that the vehicle’s driving license is valid, as well as the vehicle’s periodic technical inspection certificate be valid, and the type of vehicle insurance coverage must be comprehensive. As a result, car rental contracts will be considered executive bonds at the enforcement courts as contracts documented in evidence and will be ready for direct execution. • Dimah Talal Alsharif is a Saudi lawyer and legal consultant. Twitter: @dimah_alsharif Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News" point-of-view

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