Laws needed to regulate peer-to-peer rental business

PETALING JAYA: With an abundance of in-app and other peer-to-peer car rental business opportunities, the government needs to regulate the industry to safeguard the interests of all involved.

Peer-to-peer car rental is a business model where owners lease their vehicles for them to be rented so they can make some extra money on the side. However, what many do not know is – it is illegal.

Technically, a car bought with a loan belongs to the bank until the owner finishes servicing the loan.

“Unfortunately, many think the car belongs to them so they can do whatever they want, including modifying the vehicle.

“Actually no, they cannot do that,” explained Vehicle Theft Reduction Council of Malaysia coordinator Mas Tina Abdul Hamid.

“Some families have extra cars so they want to rent them out. However, if the car is stolen, although there is an insurance policy, the insurers will not cover it, including if there is an accident,” she said.

She said peer-to-peer car rental was not new and has been practised in many developed countries.

“Malaysia, I think, is also moving towards that. There’s an initiative for this peer-to-peer because there’s a gap,” she said.

“The insurance industry and Bank Negara have discussed this but the initiative is yet to be finalised and legalised.

“I think the Land Public Transport Agency is also looking into the rules and regulations. But laws need to be passed in Parliament,” she said.A car theft victim, who wished to be known as Zack, learnt this the hard way.

His car was stolen after he rented it to a man in Kuala Lumpur but he was shocked to learn it had reached Narathiwat in Thailand in just under 12 hours.

Zack, who was lucky enough to be able to retrieve his car with the help of his friends, said he was shocked by the investigating officer’s reaction.

“I had all the details about the renter, where he lives and even his identification card.

“But the police officer asked me to withdraw my case to avoid any issues with my insurers. He told me it was wrong for me to rent out my personal car,” he said.

Zack said the officer told him that his agreement, which included a clause that he may report the renter should they go against the agreement, was worthless.

“I am still traumatised because the main car key is still with the thieves. I had to spend another RM2,500 to change my car key,” he said.