LMA Rental Service Agreement Terms and Conditions
Please find below our Standard Terms and Conditions of Hire as well as information relating to our rental car insurance. If you have any queries please do not hesitate to contact elysa.lmaenterprise@gmail.com or 027-407-3721 for more information.
Terms and Conditions of Hire
This agreement is made between the Owner and the Hirer whose particulars are set out in the Rental Agreement.
1. Vehicle Description
The owner will let, and the hirer will take on hire, the motor vehicle described in the Rental Agreement (hereinafter referred to as “the vehicle”).
2. Duration of Hire
(a) The term of hire is for the period stated in the Rental Agreement.
(b) If the vehicle is left at any location other than the branch location, termination of the hire occurs when the vehicle is inspected at the time of collection. The hirer remains responsible for the vehicle until this inspection and collection are complete.
(c) If the hirer wishes to terminate the hire before the agreed date and time, the owner is not obliged to provide a refund for the unused portion of the hire period. Refunds may be granted in cases of extenuating circumstances or on compassionate grounds, at the sole discretion of the owner.
3. Persons Who May Drive the Vehicle
(a) The vehicle may only be driven during the hire period by:
The hirer; and
Any additional drivers named in the Rental Agreement,
provided they hold a current, full driver’s licence appropriate for the vehicle at the time of driving.
(b) The owner may check the validity and currency of any driver’s licence used in connection with this agreement.
4. Payments by the Hirer
(a) The hirer must pay the hire charge at the rate set out in the Rental Agreement.
(b) The hirer is responsible for all costs incurred by the owner in recovering any outstanding charges under this agreement.
(c) The hirer authorises the owner to charge all amounts payable under this agreement to the hirer’s account, and payment must be made within 7 days of receiving the invoice.
(d) Any refund due will be paid by the owner using a method reasonably determined by the owner.
5. Insurance Charge
In addition to the hire charge, the hirer must pay the insurance charge at the rate set out in the Rental Agreement. Details of the insurance cover are provided in Clause 11 (Insurance & Indemnity).
6. Distance Charge (if applicable)
If a distance charge applies, the hirer must pay at the rate specified in the Rental Agreement.
7. Fuel
The hirer must pay for all petrol or other fuel used in the vehicle during the hire period (oil is excluded).
If the vehicle is returned without a full fuel tank, the hirer will be charged the cost of refuelling plus an administration fee of $20.
8. Hirer’s Vehicle Maintenance Obligations
The hirer must ensure that during the hire period:
(a) The water in the radiator and battery is maintained at the proper level.
(b) The oil is maintained at the proper level.
(c) The tyres are kept at the correct pressure. Punctures and tyre repairs are the hirer’s responsibility.
9. Hirer’s General Obligations
(a) The hirer must take all reasonable care when handling and parking the vehicle, and ensure it is securely locked when not in use.
(b) The hirer is liable for:
All parking, traffic, and road toll infringements.
Any impoundment, towage, and storage fees; and
Associated costs and administration fees (up to $40 per infringement, toll, or offence).
The hirer must provide any information reasonably requested by Police or the owner in relation to such infringements.
(c) No animals may be carried in the vehicle, except certified guide dogs (documentation required).
(d) The hirer must pay all costs if the vehicle is refuelled with the incorrect fuel type, including:
The cost of correct fuel,
Towing (if required), and
Repairs to any engine, fuel, ignition system, or drive train damage caused.
Insurance & Indemnity
1. Insurance Provided
The owner provides insurance cover for the vehicle and third-party property damage, subject to the terms, conditions, and exclusions below.
The hirer and any authorised driver are covered for loss or damage to the vehicle, its accessories, or spare parts, including towing and salvage costs and any consequential loss of revenue incurred by the owner.
The hirer and any authorised driver are covered up to $1,000,000 for liability for damage to any property (including injury to animals) belonging to other persons, where such damage arises from the use of the vehicle.
The hirer is responsible for paying the insurance excess and any costs not covered under this policy.
2. Insurance Exclusions
Insurance cover will not apply, and the hirer will be fully liable for all costs where:
(a) Driver-related conditions
The driver is under the influence of alcohol or drugs that impair driving ability.
The driver is disqualified from holding, or has never held, a valid driver’s licence for the vehicle type.
The driver is not the hirer or an authorised person named in the rental agreement.
(b) Vehicle condition & use
The vehicle is operated in an unsafe or unroadworthy condition that the hirer/driver knew or should have known about, and which caused or contributed to the damage or loss.
The vehicle is operated in any race, rally, speed test, pace notes, or similar event, or on a closed road or non-public roadway.
The vehicle is operated outside the agreed hire period or any approved extension.
(c) Reckless, careless, or wilful damage
The vehicle is wilfully or recklessly damaged, or lost, by the hirer, any authorised driver, or anyone driving under the hirer’s authority.
The vehicle sustains damage due to negligence, misjudgement of height/clearance, or a single-vehicle accident (including undercarriage and roof damage).
(d) Prohibited locations and activities
The vehicle is driven on any of the following roads: Ball Hut Road (Mt Cook), Skippers Canyon Road (Queenstown), 90 Mile Beach (Northland), any unsealed private road, or is submerged in water (including crossing rivers, streams, creeks, or fords).
The vehicle, including its accessories, is damaged due to incorrect fitting of snow chains, ski/snowboard racks, or bicycle carriers.
(e) Legal/accident circumstances
The hirer or authorised driver is charged with an infringement offence as a result of an accident — in such cases, the hirer’s liability will not be less than the standard insurance excess.
3. Legal Provisions
Section 11 of the Insurance Law Reform Act 1977 applies to these exclusions as if this clause were a contract of insurance.
If the hire is for business purposes, the Consumer Guarantees Act 1993 does not apply, and the owner will not be liable for any consequential or indirect loss arising from the hire.
Nothing in this agreement limits any other statutory rights or remedies available to the hirer under the Consumer Guarantees Act 1993, except as stated above.
10. Hirer’s Liability
10.1 General liability
The hirer acknowledges that they are liable for loss or damage up to the amount stated under “Hirer’s Liability” in the Rental Agreement. This liability applies to each and every claim.
The hirer is absolutely liable for:
(a) All damage to the vehicle, including (but not limited to):
Windscreens and glass
Tyres
Damage from break-in, vandalism, theft, or attempted theft
Fire damage
Towing and recovery costs
(b) Loss of use of the vehicle by the owner for the period it is off the road for repair.
(c) Damage to third-party property.
(d) Any underbody or overhead damage.
(e) Any other damage, including that caused by hail, storms, earthquakes, or other natural disasters, up to the amount specified in the Rental Agreement.
Note:
A separate insurance excess applies to each and every claim.
Windscreen damage or breakage also carries an excess.
All such amounts will be collected as part of the total amount due under this agreement.
11. Rejection of Insurance
If the hirer rejects the insurance provided by the owner:
(a) The hirer hires the vehicle entirely at their own risk for any loss or damage to the vehicle and any consequential loss suffered by the owner.
(b) The hirer acknowledges that they have no insurance cover under this agreement for any damage, injury, or loss caused to any person or property.
(c) The hirer remains fully liable to the owner for all loss or damage to the vehicle and any consequential loss.
(d) Where the hirer nominates their own insurance, they must supply proof of the policy, proof of payment, and confirm the policy’s currency before the hire commences.
12. Owner’s Obligations
The owner will:
(a) Supply the vehicle in a safe and roadworthy condition.
(b) Be responsible for all ordinary and extraordinary running costs during the hire period, except where this agreement specifies that such costs are payable by the hirer.
Note: In accordance with Clause 7, the cost of petrol or other fuel (but not oil) used during the hire period is the responsibility of the hirer.
13. Mechanical Repairs and Accidents
(a) If the vehicle is damaged, breaks down, or requires repairs or salvage:
The hirer must notify the owner immediately by telephone or email, providing full details, photos, and any relevant third-party information.
Notification must be made on the same day the issue occurs, or as soon as practicable if outside business hours.
(b) The hirer must not arrange or undertake any repairs or salvage without the owner’s prior approval, except where:
Immediate action is required to prevent further damage to the vehicle or to other property.
(c) The hirer must ensure that no person:
Interferes with the odometer or speedometer, or
Adjusts or repairs any part of the engine, transmission, braking, or suspension systems, except in an emergency.
4. Use of Vehicle
14.1 Permitted use
The hirer must not use, or allow the vehicle to be used, for the carriage of passengers for hire or reward unless:
The vehicle is hired with the owner’s knowledge for use in a passenger service licensed under Part VII of the Transport Act 1962, or
The service is exempt from licensing under that Act.
14.2 Prohibited uses
The hirer must not:
(a) Sublet or hire the vehicle to any other person.
(b) Permit the vehicle to be operated without the owner’s authority, and only then by an authorised driver named in this agreement.
(c) Operate the vehicle, or allow it to be operated, in circumstances that constitute an offence under Section 58 of the Transport Act 1962 (driving with excess breath or blood alcohol, or under the influence of alcohol or drugs).
(d) Operate the vehicle, or allow it to be operated, in any race, speed test, pace notes, rally, or contest, or on any closed road or non-public roadway.
(e) Use the vehicle to propel or tow any other vehicle.
(f) Operate the vehicle, or allow it to be operated, in breach of the Transport Act 1962, the Traffic Regulations 1976, or any other Act, regulation, or bylaw relating to road traffic.
(g) Transport more passengers or more goods than allowed by the vehicle’s certificate of loading.
(h) Drive or allow the vehicle to be driven by any person who does not hold a current and appropriate driver’s licence for the vehicle.
(i) Take the vehicle outside of the hire area specified in the Rental Agreement.
(j) Smoke or vape in the vehicle, or allow passengers to smoke or vape in the vehicle.
14.3 Cleaning charges for smoking
If the hirer or any passenger smokes or vapes in the vehicle, a minimum cleaning charge of $200 will apply.
15. Return of the Vehicle
15.1 Relocation fee
(a) A relocation fee will apply if the vehicle is left at any location other than the branch address from which it was hired.
(b) All costs incurred to return the vehicle to its original branch will be charged to the hirer.
(c) If the vehicle is returned earlier than the agreed return date, the daily hire rate may be recalculated based on the shorter hire period. Any rate adjustment is at the sole discretion of the owner/operator.
15.2 Vehicle condition on return
(a) The hirer must return the vehicle at the end of the hire period in the same clean and tidy condition it was in at the start of the hire.
(b) If the vehicle is returned in an unclean condition, a cleaning surcharge may apply.
(c) No refund of any bond or deposit will be made until the vehicle has been cleaned and inspected for damage.
15.3 Responsibility until inspection
If the vehicle is left at any location other than the branch address, the hire will be considered ongoing until the vehicle is collected, inspected, and the hire is formally terminated. The hirer remains responsible for the vehicle until this point.
15.4 Additional charges
The owner/operator may process additional charges, surcharges, or administration fees in connection with this agreement.
16. Immediate Return of Vehicle – Default or Damage
16.1 Owner’s right to terminate hire
The owner may terminate the hire and take immediate possession of the vehicle if:
(a) The hirer breaches any term of this agreement, or
(b) The vehicle is damaged in any way.
Termination under this clause does not limit or affect any other rights the owner or hirer may have under this agreement or in law.
16.2 No obligation to replace or refund
(a) In the event of damage to the vehicle or an accident, the owner is under no obligation to:
Supply a replacement vehicle, or
Provide a refund for the unused portion of the hire term.
(b) The decision to provide a replacement vehicle is entirely at the owner’s discretion and subject to vehicle availability.
16.3 Where accident is not the hirer’s fault
If the accident is confirmed to be not the fault of the hirer or any nominated driver:
The owner may, at their sole discretion, provide a replacement vehicle once liability has been confirmed.
Provision of a replacement vehicle will remain subject to availability.