In a self-drive car rental situation where the lessee exceeds the permitted passenger capacity of the vehicle, who is liable for the fine: the lessor or the lessee?

Scenario: In a self-drive car rental situation where the lessee exceeds the permitted passenger capacity of the vehicle, who is liable for the fine: the lessor or the lessee?

According to the provisions of Clause 2, Point b and Point d, Clause 10, Article 20 of Decree No. 168/2024/ND-CP dated December 26, 2024 of the Government stipulating penalties for administrative violations against regulations on traffic order and safety in the road traffic sector; point deduction and restoration of driving licenses, a driver of a car carrying passengers in excess of the permitted number may be subject to a fine ranging from VND 400.000 to VND 600.000 per excess passenger, with a maximum fine not exceeding VND 75.000.000. In the event that the number of passengers exceeds the permitted seating capacity by 50% to 100%, the driver will have 04 points deducted from their driving license. If the number of passengers exceeds the permitted seating capacity by more than 100%, the driver will have 10 points deducted from their driving license.

Concurrently, pursuant to Clause 5, Article 32 of Decree No. 168/2024/ND-CP, individual vehicle owners who entrust their vehicles to another person for operation (through means such as lease, loan, etc.) and said person commits a violation, may be subject to a monetary fine ranging from VND 800.000 to VND 1.200.000 per excess passenger, with a maximum total fine not exceeding VND 75.000.000. In the event the vehicle owner is an organization, they may be subject to a monetary fine ranging from VND 1.600.000 to VND 2.400.000 per excess passenger, with a maximum total fine not exceeding VND 150.000.000.

Furthermore, in accordance with the provisions of Clause 8, Article 47 of Decree No. 168/2024/ND-CP, in cases where an administrative violation is detected through the use of professional technical equipment and the competent authority is unable to immediately stop the vehicle for processing (commonly referred to as “remotely detected fine”), the competent authority shall initially issue a notification requiring the vehicle owner to appear for the resolution of the violation.

• In the event that the vehicle owner fails to cooperate with the competent authorities, or fails to provide evidence or an explanation demonstrating that they were not the individual operating the vehicle at the time the violation occurred, they shall be subject to penalties for the detected violation.
• Conversely, if the vehicle owner provides evidence demonstrating that they did not commit the violation and cooperates with the competent authorities in identifying the responsible party, they shall not be liable for fines issued based on remotely detected fines for that specific violation.

Consequently, when a lessee operates a vehicle carrying passengers exceeding the prescribed limit, both the vehicle owner and the driver may be subject to administrative penalties. Specifically, the driver shall be penalized for the act of operating the vehicle with excess passengers, while the vehicle owner shall be penalized for the act of entrusting the vehicle to another individual who then commits a violation. Furthermore, the vehicle owner also risks being penalized if they are subject to a remotely detected fine for the offense of carrying excess passengers and fail to cooperate with the competent authorities or provide evidence demonstrating that they were not the individual operating the vehicle at the time of the violation.