The Undersecretary of the Ministry of Commerce and Industry, Ziad Al-Najem, has announced a landmark decision to overhaul car rental contracts in Kuwait. Minister of Commerce and Industry Khalifa Al-Ajil has issued Ministerial Resolution No. 231/2024, mandating strict guidelines to protect consumer rights.

This decision emphasizes comprehensive insurance coverage, explicit contractual terms, and the inclusion of documented vehicle conditions at the time of receipt and delivery. The reforms aim to eliminate consumer burdens caused by vague terms, unclear financial obligations, and the practice of requiring customers to sign bills of exchange.

Key Conditions Under the New Car Rental Guidelines

Obligations of Car Rental Companies

• Delivery of Technically Safe Vehicles
  Rental companies must provide cars in a sound and safe technical condition, adhering to all safety standards. Vehicles must include essential accessories like emergency tools and spare tires.
• Documenting Car Condition
  The car's condition must be documented through videos or photographs before delivery. Contracts should clearly note any existing damages to ensure transparency.
• Lessee’s Responsibility
  The lessee is accountable for returning the vehicle in its original condition, accounting for normal wear and tear. Damages beyond warranty coverage, such as lost keys or booklets, will incur costs based on agency pricing or relevant authority charges.

Financial and Accident-Related Clauses

• Rental Period Calculation
  A rental day is defined as 24 hours from the time of car receipt. Delays are subject to additional hourly or daily charges.
• Accident Procedures
  Lessees must obtain a repair permit from the Ministry of Interior in case of an accident. Repair costs, insurance fees, and specified percentages are borne by the lessee as per contract terms.
• Vehicle Seizure
  If a car is seized by authorities due to the lessee's actions, the lessee is obligated to pay the daily rental fee during the seizure period. Any damage incurred during the seizure period is also the lessee's responsibility.

Transparent and Fair Contracts

• Contract Clarity
  Rental contracts must clearly outline the rights and obligations of both parties. Vague clauses or additional financial documents such as trust receipts or bills of exchange are strictly prohibited.
• Provision of Contract Copies
  The lessor is required to provide the lessee with a copy of the rental contract and any related documentation.

Enhancing Consumer Confidence in Car Rentals

The new regulations signal a significant step toward consumer protection in Kuwait’s car rental industry. By ensuring transparency, fairness, and accountability, these measures are designed to enhance trust and reliability in the sector.