KUWAIT CITY, Dec 5: Undersecretary of the Ministry of Commerce and Industry Ziad Al-Najem has confirmed the issuance of a decision to restructure car rental contracts. Al-Najem said Minister of Commerce and Industry Khalifa Al-Ajil issued Ministerial Resolution No. 231/2024; which mandates comprehensive insurance coverage and that all terms be specified in the contract, along with documented photos of the car upon receipt and delivery. He explained the new guidelines eliminate the practice of requiring customers to sign bills of exchange, take on unclear financial obligations, or accept vague terms that previously burdened consumers. He elaborated that under the new resolution, lessors are required to deliver the car in a sound and safe technical condition, meeting all safety standards and equipped with essential accessories.

He added all car rental companies, institutions, and offices must ensure the inclusion of the following conditions in their rental contracts with customers: 1. The lessor is obligated to deliver the car in a technically sound and safe condition, ensuring it meets all safety requirements and is equipped with necessary accessories such as emergency tools and spare tires. 2. The condition of the car must be documented before delivery through video or photographs, with detailed notes in the contract specifying any previous damages. 3. The lessee must return the car in its original condition, accounting for normal wear and tear. The lessee will be held responsible for any damages not covered by the warranty, including the loss of the car key or its booklet, based on the agency’s pricing or the relevant authorities’ charges.

In the event of damage, the agency’s valuation of the car will serve as the reference for determining repair costs. 4. The rental day is calculated as 24 hours from the time the car is received, and any delay will be charged based on the additional hours or days. 5. In the event of an accident, the lessee is required to obtain a repair permit from the Ministry of Interior and pay for the insurance file opening fees and any applicable percentages specified in the contract. No repairs are to be made without the lessor’s written approval. If the car is seized by authorities due to the action of the lessee, the latter must continue to pay the daily rental fee during the seizure period and cover any damage to the car that occurs within this period. 6. The lessor is required to provide the lessee with a copy of the contract and any associated documents that clearly outline the rights and obligations of both parties. The contract must not contain vague clauses. It is prohibited to force the lessee to sign trust receipts, bills of exchange, or any other financial documents beyond the scope of the lease agreement

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff