Terms and Conditions

I. Insurance and Liability

1.1. Comprehensive Coverage:

The Lessee is covered by a comprehensive and collision insurance policy for the Leased Vehicle. In the event of an accident, the Lessee's liability for vehicle repair costs is limited to a participation fee (deductible).

• Participation Fee: The Lessee is responsible for the first portion of the repair cost, which is the higher of either:
  
  • Sedan: [PHP____ amount]
  • Van: [PHP____ amount]
  • SUV: [PHP____ amount]
  • Or: 1% of the vehicle's total insured value whichever is higher

1.2. Downtime Charges:

• The Lessee is responsible for "Downtime" charges, which are calculated as the prorated daily lease rate for the period the vehicle is unavailable for use due to repairs. This applies regardless of who was at fault for the damage.

1.3. Personal Accident Insurance:

• The Lessee, authorized drivers, and any passengers are covered by a personal accident insurance policy. This policy provides a specified amount for accidental death and medical reimbursement for injuries sustained inside the vehicle.

1.4. Compulsory Third-Party Liability (CTPL):

• The vehicle is covered by a CTPL policy, which provides indemnities for third-party injury or death in accordance with Philippine law.

1.5. Total Loss of Vehicle:

In the event the vehicle is declared a total loss due to theft, "car-napping" or damage of such severity that the cost of repair is deemed uneconomical by the insurance provider, the following terms shall apply:

• The Lessee shall be solely responsible for and agrees to pay the "Devaluation Cost" The Devaluation Cost is defined as the difference between the vehicle's fair market value immediately prior to the event causing the loss and the total amount recovered from the comprehensive insurance claim. The Lessee's liability for this amount is absolute and will be payable to the Lessor upon demand.

1.6. Reporting Requirement for Insurance Claims:

• No official report, no insurance coverage. The Lessee must follow the accident reporting procedures outlined in Section IV. Failure to do so will void all insurance coverage, and the Lessee will be responsible for all related charges and expenses.

II. Payment Terms

All payments are due upon the Lessor's request and are subject to the following conditions:

2.1. Full Payment Upon Booking:

• To confirm a reservation, the Lessee is required to make the full payment for the estimated total lease charges. The booking is not considered confirmed until full payment has been successfully received by the Lessor.

2.2. Cancellation and Refund Policy:

Cancellations of a confirmed booking are subject to the following refund terms, based on the time of notice given prior to the scheduled lease start date and time:

• More than 48 hours notice: A full (100%) refund will be issued.
• Between 24 to 48 hours notice: A 50% refund will be issued.
• Less than 24 hours notice: The payment is non-refundable.

2.3. Overtime and Extension:

• Hours in excess of the agreed daily period will be charged an overtime rate of 10% per hour or a pre-agreed rate of PHP [____Amount] / hour.
• An extension is capped at a maximum of six (6) hours. Beyond that, a full additional days lease rate will apply.

2.4. Mileage Limit:

• The standard trip is limited to 100 kilometers per day within Metro Manila, or a pre-agreed limit of [___________Number] km/day.
• Exceeding this limit will incur a charge of PHP 10.00 per kilometer.

2.5. Delivery and Collection:

The vehicle must be returned to the Lessor's office where it was originally leased.

• Delivery Fee: A minimum charge of PHP 1000 or a pre-agreed rate of PHP [___________Amount].
• Collection or Transportation : A minimum charge of PHP 500 or a pre-agreed rate of PHP [____________Amount].

2.6. Non-Refundable Charges for Unused Periods:

• Payments for unused lease periods after the lease has commenced are non-refundable. This includes, but is not limited to, early returns, number coding days, or periods where the vehicle is on standby (zero odometer reading).

2.7. Late Return Penalty:

• If the Lessee fails to return the vehicle at the end of the lease period, a penalty of 30% of the accumulated charges will be added until the vehicle is returned.

2.8. Late Payment Penalty:

• Non-payment of any outstanding balance (e.g., for overtime, excess mileage) by the due date will incur a penalty of PHP 300.00 per day until the balance is paid in full.

2.9. Payment Method and Currency:

• The Lessee consents to the reservation of credit for all estimated charges and authorizes the Lessor to process all due charges on the Lessee’s credit card.
• Payments made in a foreign currency will be subject to a 1% surcharge on the total amount due.
• All charges are subject to a final audit.

2.10. Returned Checks:

• A fee of PHP 1,000.00 will be charged for any check returned due to insufficient funds, a closed account, or a stop payment order.

2.11. Collection and Legal Fees:

• The Lessee agrees to pay all costs associated with collecting past-due amounts, including attorney's fees and interest at the highest rate permitted by law.
• If legal action is required, the venue for such suits shall be Manila. The Lessee agrees to pay attorney’s fees at a rate of 25% of the total amount due, with a minimum fee of PHP 50,000.00.

2.12. Security Bond / Refundable Deposit

The Lessee shall pay a refundable security bond based on vehicle type:

• Vehicle Type: Sedan / Crossover, Security Bond: PHP 5,000
• Vehicle Type: Van / SUV, Security Bond: PHP 10,000

a. The security bond covers, but is not limited to:

• Traffic/parking violations
• RFID excess usage
• Missing/damaged accessories
• Cleaning / detailing fees
• Other incidental charges not covered by insurance

b. The bond is refundable upon completion of the lease period, after deduction of any applicable charges owed by the Lessee.
c. If charges exceed the bond, the Lessee must settle the balance immediately.

2.13. RFID Toll Card Bond

A vehicle may be issued with an RFID toll card.

a. The Lessee shall provide an RFID Consumable Bond, usually ₱2,000, to cover tollway usage during the lease period.
b. Unused RFID balance is refundable within 3–5 working days after reconciliation.
c. Excess usage beyond the bond amount must be settled immediately.
d. Lost or damaged RFID cards will be charged to the Lessee based on the issuing toll operator’s replacement cost schedule.

2.14. Reservation Fee

a. A reservation fee shall be required to secure booking confirmation, which is standard at PHP 2,500, unless otherwise agreed in the issued quotation.
b. The reservation fee is deductible from the total rental charges.
c. The reservation fee is non-refundable, unless otherwise agreed in writing.

III. Vehicle Use and Restrictions

3.1. Prohibited Uses:

The leased vehicle shall NOT be operated under the following conditions:

• By any unauthorized driver.
• By any driver under 21 years of age or without a valid driver's license.
• By any person who has provided a fictitious name or false information.
• By any person under the influence of alcohol, drugs, or any substance that impairs driving ability.
• To transport hazardous materials (e.g., logs, sand, gravel, flammable liquids).
• For any illegal purpose, including the commission of a felony or transportation of contraband.
• For racing, speed testing, or any activity related to the motor trade.
• To travel to restricted areas, including Banaue, Mountain Province, or other impassable roads.
• To ferry the vehicle off Luzon Island (e.g., via RoRo).
• In a manner that exceeds the vehicle's passenger or weight capacity.
• With disregard for safety laws, such as seatbelt and child restraint regulations.
• If the Lessee fails to secure the vehicle by removing the keys and locking all doors and windows.

3.2. Vehicle-Specific Restrictions:

• Vehicles with engines 1.3L or smaller (e.g., Toyota Vios, Honda City) are prohibited from use in mountainous areas or on steep uphill roads.

3.3. Prohibited Activities:

• Smoking and Pets: Smoking and pets are strictly prohibited inside the vehicle. A cleaning and detailing fee of PHP 3,500 will be charged for any violation to remove odors or repair damage.

3.4. Repairs and Alterations:

• The Lessee is prohibited from making any repairs, replacements, or alterations to the vehicle without the Lessor's prior written consent. The Lessee shall be liable for the cost of all unauthorized repairs and for restoring any alterations.

3.5. Right to Inspect:

• For monthly leases, the Lessor reserves the right to inspect the vehicle at any time and may require the Lessee to present the vehicle upon request.

IV. Accident and Incident Reporting Procedures

In the event of an accident, theft, or vandalism, the Lessee must take the following steps to protect the interests of the Lessor and its insurance provider:

1. Immediately notify the Lessor.
2. Obtain the names, address(s), and contact information of all parties and witnesses involved.
3. Take clear photographs of the incident, including the damage and vehicle plate numbers.
4. Obtain photocopies of the OR/CR, driver's license, and insurance policy of the other party involved.
5. Call the police to secure an official police report.
6. Do not abandon the vehicle; ensure it is properly safeguarded.
7. If injuries occur, secure a medical report and evidence of all medical expenses.
8. Fully cooperate with any investigation or defense of a claim or lawsuit.

4.1. Towing:

• If an accident occurs outside Metro Manila and the vehicle requires towing, the Lessee shall bear the full cost of towing the vehicle to the Lessor's designated repair facility.

V. General Terms and Conditions

5.1. Ownership:

• The vehicle is and shall remain the exclusive property of the Lessor. The Lessee shall not sell, assign, mortgage, pledge, or otherwise encumber this agreement or the vehicle.

5.2. Mechanical Failure:

• The Lessor is not liable for consequential damages arising from mechanical failure or delays. In the case of a breakdown due to normal "wear and tear" the Lessor will endeavor to provide a replacement vehicle, subject to availability.

5.3. Personal Property:

• The Lessor is not liable for any loss or damage to property left, stored, or transported in the vehicle by the Lessee or any other person.

5.4. Missing Accessories:

• Vehicle accessories (stereo, tools, tires, etc.) are not covered by insurance. Any loss or damage to these items shall be paid for by the Lessee, and the cost may be deducted from the security deposit.

5.5. Failure to Return Vehicle:

• If the vehicle is not returned within 24 hours of a written or oral demand from the Lessor, the Lessee will be considered in unlawful possession of the vehicle. The Lessor will be authorized to report the vehicle as stolen and seek a warrant for the arrest of anyone in possession of it.

5.6. Governing Law:

• This agreement shall be governed by the laws of the Philippines. Any alterations to these terms are void unless made in writing and signed by both parties.

5.7. Identification Requirement and Document Handling

• The Lessee shall be required to present a valid government-issued identification card (ID) for verification purposes prior to the release of the leased vehicle. The Lessor shall not require, and the Lessee shall not be obligated, to surrender his/her passport as a condition of the lease. Any provision requiring the withholding of the Lessee’s passport is deemed void and unenforceable under applicable laws. In lieu thereof, a valid government-issued ID (e.g., UMID, TIN, or similar) may recorded for identification purposes and reasonably withheld as collateral for any outstanding obligations.