Safety and problems

Accident or damage on a rental vehicle: what to do and who actually pays

What to do straight after a rental vehicle accident, how third-party and own damage differ, what the agreement shifts onto you and what to ask before signing.

By CarBikeRent Editorial Team. Published 4 Nov 2026. Updated 4 Nov 2026. Read our editorial standards.

Quick answer

Get help for anyone injured first, then call 112, tell the provider and record everything. Harm to other people and their property falls on the vehicle's third-party insurance, unless a breach such as driving unlicensed or drunk lets the insurer dispute it. Damage to the rented vehicle is decided mainly by your agreement, so you can owe an excess, uninsured repairs or lost rental days. Ask about all of that before you sign.

The first 30 minutes: what to do, in order

If you are reading this at the roadside, start here. Stay calm and work down the list.

  • Stop. Section 132 can require you to stay for a reasonable time, and leaving makes everything worse.
  • Make the scene safe. Switch on hazard lights and move anyone who can walk out of traffic.
  • Call 112, the Ministry of Home Affairs' single emergency number for police, fire and health services.
  • Get medical help for anyone injured. Section 134 requires the driver to take all reasonable steps to do this, unless it is not practicable, such as because of mob fury.
  • Call the provider's emergency number and follow up by message.
  • Photograph the scene before anything moves, if it is safe: vehicles, plates, road, damage and any witnesses.
  • Note names, phone numbers and the other vehicle's number.

Things not to do

Do not agree a cash settlement at the roadside, sign a statement you have not read, or arrange repairs yourself. An unauthorised repair can give the provider or the insurer a reason to dispute the bill.

If someone is hurt: treatment first, paperwork later

Section 134 says a doctor must attend an injured person immediately, without waiting for procedural formalities. The government also notified a cashless treatment scheme for road accident victims on 5 May 2025, according to a ministry reply to the Lok Sabha. Reports of the notification say it covers any victim of a motor vehicle accident on any road, up to ₹1.5 lakh for seven days at a designated hospital, with other hospitals limited to stabilisation.

The reports you must make afterwards

When someone is injured or third-party property is damaged, section 134 sets out two more duties. You must give the police information on demand or, if no officer is present, report it at the nearest police station as soon as possible and within 24 hours at the latest. Written details also go to the insurer: policy number, date, time and place, the people involved, and the driver's name and licence.

As the provider holds the policy, ask it to confirm the insurer has been told, and keep that message. Even in a minor solo fall where those duties may not apply, your agreement will usually require you to report damage, so tell the provider straight away and ask whether it needs a police report. Section 159 has the police prepare an accident information report during an investigation, and a claim may depend on it.

Who pays for what: the four kinds of loss

People ask who pays as if there were one answer. There are four bills, and each works differently. Third-party cover protects other people. It does not repair the vehicle you rented.

Who usually bears each kind of loss
LossUsually falls first onHow it can shift to you
Another person's injury, death or propertyThird-party insurance on the vehicle (sections 146 and 147)A policy breach under section 150(2), such as no valid licence or drink-driving
Damage to the rented vehicleThe provider's own-damage cover, if any, and then your agreementAn excess, uninsured parts, towing, lost rental days
Your own injuriesYou: your health or travel insuranceCheck for motorcycle or licence conditions in your own policy
Theft of the vehicleThe provider's insurer, if the policy covers itTerms about lost keys, unsafe parking or late reporting

When a breach turns a claim against you

Section 150(2) lists the grounds on which an insurer can defend a claim. They include driving by someone not duly licensed, driving under the influence as set out in section 185, and use for a purpose the permit does not allow. In Singh Ram v Nirmala (2018), a motorcycle owner-rider without a valid licence lost his appeal against an order that the insurer pay the victim and recover the money from him. Read what happens without a licence.

Does a rental have to be fully insured?

Section 146 only demands third-party cover. The Rent a Cab and Rent a Motor Cycle schemes go further: both list comprehensive insurance among the things the licensing authority considers before granting a licence. These scheme copies predate later amendments, and not every listing is a scheme operator, so ask to see the policy instead of assuming.

What a rental agreement usually shifts onto you

The agreement decides most of the money after a crash, so read it. Zoomcar's published policy shows how such terms can look: accidental damage up to the limit of your protection plan, full repair costs for intentional or consequential damage, and towing, impound and repair costs after incidents caused by improper use. Other providers word this differently, but these are the clauses to look for:

  • An excess or damage cap: the most you pay for covered damage
  • A full-liability clause for breaking the agreement or the law
  • Loss of use: rent for the days the vehicle is off the road
  • Depreciation or parts the insurer does not pay for
  • Towing, storage and impound charges
  • Use limits: off-road use, racing, unlisted drivers, other states

What this can add up to

Example only, with invented numbers: a repair costs ₹20,000, your agreement sets a ₹5,000 excess, and the vehicle is off the road for four days at ₹1,000 a day in loss of use. If the insurer covers the rest, you owe ₹5,000 + ₹4,000 = ₹9,000. If you broke a term and lost the cap, you could owe the whole ₹20,000 plus the ₹4,000.

Questions to ask before you sign

These take a couple of minutes at the counter, and the answers decide what you could owe. Get them in writing.

  • Is this vehicle comprehensively insured, or third-party only? Can I see the policy?
  • What is the most I can owe for accidental damage?
  • What breaks that limit?
  • Do you charge for lost rental days, and at what rate?
  • Who chooses the garage, and will I see the invoice?
  • Am I covered if another named driver is driving?
  • What is your 24-hour accident number?

If you think the damage bill is wrong

Do not pay on a verbal figure. Ask for the invoice or estimate, photos of the damage and the clause being used, and compare those with your pickup video. If the claim covers old damage or a much higher amount than the invoice, reply in writing and say which items you dispute.

Section 2(46) of the Consumer Protection Act, 2019 names a penalty wholly disproportionate to the loss as an example of an unfair contract term. If the money comes out of your deposit, follow the steps for a withheld deposit, starting with the National Consumer Helpline.

Where this advice has limits

After a serious injury, a death or a police case, this guide is not enough: speak to a lawyer in that state before signing or paying anything. What you have read here is general information, not legal advice, drawn from the sources below as they stood on 4 November 2026. CarBikeRent.com is a comparison site and has no part in the agreement, the insurance or any claim.

Frequently asked questions

The accident was not my fault. Do I still pay the provider?

Possibly at first. Many agreements make you responsible for damage during the rental regardless of fault, and leave any recovery from the other driver to you or the insurer. Check the clause, and keep the police details and the other driver's information.

Can the provider keep my licence until I pay for damage?

Nothing found in the Act gives a private provider that right, and section 130 expects you to produce your licence to the police. Ask for it back in writing. If the provider refuses, ask it to state the reason in writing and raise it with the National Consumer Helpline on 1915.

Do I need an FIR for a small scratch on a rental car?

Not necessarily, as the 24-hour duty in section 134 applies when someone is injured or third-party property is damaged. The provider's insurer may still want a report for a claim, so tell the provider first and ask.

Who pays if a rented bike is stolen?

That turns on the provider's insurance and your agreement. Report it to the police and the provider immediately, hand over the keys you hold, and keep the complaint copy. ONN Bikes' FAQ has a separate entry on theft, which shows these terms exist, so look for yours before you ride.

Sources

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