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tilvin

Giving for hire - Legal agreement

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Guys, need some information regarding giving a car for hire something like Uber or Pickme. This is for my freind. He is planning to give one of his car for Uber hire commission based to a driver. The driver will keep the vehicle in driver's home in the night. In this prevailing situation what legal precautions my friend can take?. Because who will be traveling in the vehicle my friend can't control. So what legal documents he can prepare? Is it from lawyer or police reports? Just for information. Please help.

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You really should talk to a lawyer about this. At the minimum, I would imagine the following would be needed:

1. Rent-a-car (not hiring) insurance for the car. This must include SRCC and terrorism covers. Hiring insurance is acceptable only if the owner is driving the car

2. GS/Police reports of the driver and copies of NIC, DL etc.

3. A legal agreement with the driver. This should clearly state that the driver is prohibited from taking hires outside of Uber or Pickme. I was travelling in a cab just yesterday, when the driver told me a horror story. Apparently, this guy had befriended a man whom he met during an uber hire. After his first hire, the passenger had taken his number and has frequently called him for ad hoc hires, outside of uber. Recent developments in the country had made him shit in his pants, when he remembered some of the places that he went, during these ad hoc hires.

Your friend must also inspect the car regularly. There was an incident some time ago, where the entire engine of a bus was stolen (and replaced by an old engine), when it was hired out.

 

 

 

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You really should talk to a lawyer about this. At the minimum, I would imagine the following would be needed:
1. Rent-a-car (not hiring) insurance for the car. This must include SRCC and terrorism covers. Hiring insurance is acceptable only if the owner is driving the car
2. GS/Police reports of the driver and copies of NIC, DL etc.
3. A legal agreement with the driver. This should clearly state that the driver is prohibited from taking hires outside of Uber or Pickme. I was travelling in a cab just yesterday, when the driver told me a horror story. Apparently, this guy had befriended a man whom he met during an uber hire. After his first hire, the passenger had taken his number and has frequently called him for ad hoc hires, outside of uber. Recent developments in the country had made him shit in his pants, when he remembered some of the places that he went, during these ad hoc hires.
Your friend must also inspect the car regularly. There was an incident some time ago, where the entire engine of a bus was stolen (and replaced by an old engine), when it was hired out.
 
 
 
Is rent a car insurance different from hire pur hase? I am first time hearing. Since one driver is going to drive do we need that?

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On 5/16/2019 at 12:15 PM, tilvin said:

Is rent a car insurance different from hire pur hase? I am first time hearing. Since one driver is going to drive do we need that?

Sent from my SM-J610F using AutoLanka.com mobile app powered by Tapatalk
 

There's no hire-purchase insurance

There are many types of insurance. For your purpose, hiring or rent-a-car insurance is applicable. 'Hiring' means the owner or insurance policy holder will drive the vehicle as a taxi. Rent-a-car means a third party drives the vehicle.

If you hand over the vehicle for a third party for a commercial purpose, and if an accident takes place, the insurance company can refuse to pay you, if you have hiring insurance.

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There's no hire-purchase insurance
There are many types of insurance. For your purpose, hiring or rent-a-car insurance is applicable. 'Hiring' means the owner or insurance policy holder will drive the vehicle as a taxi. Rent-a-car means a third party drives the vehicle.
If you hand over the vehicle for a third party for a commercial purpose, and if an accident takes place, the insurance company can refuse to pay you, if you have hiring insurance.
Thanks bro....

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As the owner of the vehicle, you must also take precautions to ensure the driver does not commit any offences using the vehicle. You can request the driver to submit a police report or the driver could give you a written letter that he was not involved in any crimes previously. There are some specific laws (like section 40 of the Forests Ordinance) which result in automatic confiscation of the vehicle. Using the vehicle to transport drugs, firearms, explosives or to commit offences under the Prevention of Terrorism Act are likely to result in the seizure of the vehicle. The owner will then have to go to Court and satisfy the Judge that he took all reasonable precautions to prevent the commission of a crime. If the owner fails, the vehicle will be confiscated to the State. The owner will end up without a car and under obligation to pay the balance lease. Sorry to present a bleak picture but this is how things happen in Court. It would be better if you consult a lawyer to decide what precautions you need to take that will, if brought to Court, to prevent the commission of a crime. A legal agreement drawn by a lawyer between the owner and the driver will enhance your credibility when investigated by the authorities. 

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