KUWAIT: The Ministry of Commerce and Industry announced new regulations for car rental contracts on Thursday, aimed at improving transparency and consumer protection. The new rules include a ban on the use of promissory notes, mandatory comprehensive insurance, and a requirement for both delivery and return of the car to be documented with photographs. The regulations also prohibit vague clauses that could disadvantage consumers.

In a press statement, Ministry Undersecretary Ziyad Al-Najim explained that Ministerial Decision 231/2024, issued by Minister of Commerce and Industry Khalifa Al-Ajeel, aims to streamline car rental contracts by ensuring clear terms and conditions. One of the key provisions is the mandatory inclusion of comprehensive insurance and a requirement for the car’s condition to be documented through photos at both delivery and return.

Al-Najim added that the new decision eliminates the use of promissory notes or any ambiguous financial obligations that could unfairly burden consumers. This move is part of the ministry’s broader effort to enhance consumer protection. The decision also mandates that the lessor deliver the car in sound mechanical condition, meeting all safety standards and equipped with essential accessories like emergency tools and spare tires.

Liability for damage

Prior to delivery, the car’s condition must be documented through video or photos, and any pre-existing damages should be clearly noted in the contract. If any new damage occurs during the rental period, the dealership’s assessment will serve as the official reference for determining the cost. Furthermore, renters are required to return the car in its original condition, accounting for normal wear and tear. They will be responsible for any damages not covered by the dealer’s warranty, including lost keys or documents, based on the dealer’s pricing or relevant authorities. The new rules specify that the rental day is calculated as a 24-hour period starting from when the car is received, and any delays, whether in hours or days, will be accounted for.

In the event of an accident, the renter must obtain approval for repairs from the Ministry of Interior and bear the cost of opening an insurance file, as well as the agreed-upon percentage outlined in the contract. Renters are prohibited from making repairs without the lessor’s written consent. If the car is confiscated by authorities due to the renter’s actions, the renter will be responsible for the daily rental fee during the confiscation period, as well as any damages incurred.

Al-Najim emphasized that the decision requires the lessor to provide the renter with a copy of the contract and any related documents, clearly outlining both parties’ rights and responsibilities. Additionally, the decision prohibits the lessor from requiring renters to sign any promissory notes, security receipts, or other financial documents outside the rental agreement. — KUNA