Self-drive car rental fined: Who is responsible for paying the fine, the renter or the car owner?
Many self-drive car rental owners face difficulties when receiving notification of fines for traffic violations (via automated enforcement systems) from authorities after rental contracts have ended. So, who is responsible in such cases: the car owner or the renter?
The self-drive car rental service has long flourished in Vietnam due to its economic benefits. Demand spikes during holidays and Tet, with many rental agencies experiencing "out-of-stock" situations. Additionally, some car owners who rarely use their vehicles take advantage of these times to rent them out for extra income.
However, this line of work is not without challenges, particularly as authorities increasingly enforce traffic violations through automated systems and impose stricter penalties.
There have been many cases where, after the rental contract ends, car owners unexpectedly receive notifications of traffic fines caused by renters. This situation puts car owners in a dilemma: paying the fine themselves feels unjust, but recovering compensation from the renters is not always straightforward. So how should this be handled?
According to Clause 8, Article 80 of Decree 100/2019/ND-CP, which outlines the procedures for handling traffic violations committed by vehicle owners or operators:
In cases where violations are detected using technical surveillance equipment but authorities cannot immediately stop the vehicle for handling, they will issue a notice requesting the vehicle owner and any relevant individuals or organizations to visit the office to resolve the matter. The vehicle owner is responsible for cooperating with authorities to identify the driver who committed the violation.
- For individual vehicle owners: If they fail to cooperate, cannot provide evidence, or fail to explain that they were not the driver, they will be fined according to the detected violation.
- For organizational vehicle owners: If they fail to cooperate or provide sufficient evidence to identify the violator, they will face a fine twice the amount prescribed for the detected violation, up to the maximum fine. Exceptions apply when the vehicle is proven to have been stolen or used without authorization.
When a rental car incurs a fine, authorities will contact the vehicle owner to address the issue. Even though the owner did not commit the violation, they are required to respond to the notice and cooperate to identify the renter responsible for the infraction.
If the owner provides evidence proving they did not commit the violation and assists traffic police in identifying the violator, they will not be required to pay the fine.
However, if the violator is identified but refuses to pay, the car owner may face issues with vehicle inspection. If the fine remains unpaid past the deadline, traffic police will update the vehicle’s information into the inspection warning system, resulting in the vehicle being denied registration renewal.
If the violator cannot be identified or the car owner lacks evidence (e.g., an insufficiently detailed rental agreement), the car owner will be held accountable for the violation and must pay the fine.
To avoid complications related to traffic fines, car owners should clearly outline in rental contracts the responsibilities of renters in case of traffic violations. This provision provides a legal basis to request reimbursement from renters if fines must be paid on their behalf. If renters refuse to reimburse, owners can pursue legal action to recover the amount.
Additionally, when handing over vehicles, owners can require renters to deposit an amount for a period of 15 days to 1 month. During this time, owners should check for violations using official traffic enforcement websites. If violations are detected during the rental period, the owner can deduct the fine from the deposit. If no violations are found, the deposit should be returned to the renter.
Original article by AutoPro
