Open to risks of cars being stolen

READING the reports “Thieves now rent and run” (The Star, Jan 18; online at https://bit.ly/3wevjN9) and “Stuck with loan and fines – but no car” (https://bit.ly/3GNRvmd) reminded me of similar cases reported by another local daily 20 years ago.

I was in the car rental business from the mid-1970s until the mid-2000s, managing many car rental companies for large corporations, both local and foreign.

Customers were carefully screened before the vehicles were handed over to them. Sometimes, mistakes were made, and the cars were never seen again.

The car rental business is as risky as it is rewarding. Large car rental companies insure their entire fleet under third party instead of comprehensive cover, as the premiums saved would be more than enough to pay for the loss of a few cars and repairs for all collision damage annually.

Cars rented from small or roadside operators are largely individually owned. In the event of a road crash, the police report would be made by the owner instead of the customer for insurance purposes.

It is important to know that the standard motor insurance policy does not cover private registered vehicles that are used for hire or reward. It is also against the rules for commercial vehicles to be used for services other than those they are licensed for.

For example, not long after Uber was introduced here in 2014, the enforcement division of the Land Public Transport Commission (SPAD) impounded many private cars and licensed hire-and-drive vehicles that were illegally used for chauffeur-driven ehailing service.

In recent years, many car-sharing platforms have appeared in the local scene, and there is no shortage of car owners handing over their vehicles to be rented out to customers they may not get to meet because bookings are made via mobile apps.

The business model of car-sharing firms is like those in ehailing. They provide an online platform with car owners and customers bearing the risks.

I would never drive an unlicensed rental car as there is no third party cover for property damage, which could exceed RM100,000, and third party injuries could amount to millions of ringgit in compensation for death, permanent disablement and loss of income for life.

Likewise, I would never offer my private car to any car-sharing app, as I could be exposed to many risks, including losing the vehicle. Although I may still be gullible to other things, I will make sure it won’t be for driving an unlicensed rental car or renting out my private car.

YS CHAN

Kuala Lumpur