Allowing someone to rent or borrow your motorcycle might seem like an easy way to earn extra income, but owners who let unlicensed riders onto public roads risk prosecution, vehicle seizure and potentially serious insurance complications. This issue came into focus following enforcement operations by JPJ, which uncovered motorcycles registered to Malaysians but ridden by foreign nationals without valid driving licences.
In early October, Penang JPJ seized 74 motorcycles ridden by foreign nationals without valid licences during Ops PeWA. Some riders were reportedly renting motorcycles from local owners for around RM200 a month.
The question for motorcycle owners is straightforward – if you hand over your keys to someone who has no valid licence, how much trouble could you get into? Under Section 26(1) of the Road Transport Act 1987, it is an offence to ride a motor vehicle on a road without a valid licence for the relevant class. It is also an offence to employ or permit an unlicensed person to ride it.
A conviction under Section 26(2) can carry a fine of RM300 to RM2,000, imprisonment of up to three months, or both. This means owners cannot escape responsibility by arguing the rider was the one caught by JPJ and knowingly renting out a motorcycle to someone without the required licence could expose the owner to prosecution as well.
Section 109 of the Act also addresses the responsibility of registered owners for offences committed by drivers, subject to the provision’s terms and applicable defences. JPJ indicated it intends to pursue both riders and owners in cases involving motorcycles rented to unlicensed foreign nationals, with senior enforcement director Datuk Muhammad Kifli Ma Hassan instructing state JPJ directors to engage deputy public prosecutors and recommend higher penalties for repeat offenders.
The immediate consequence for owners could be losing access to their motorcycles. Under Section 64 of the Act, JPJ is empowered to seize vehicles in specified circumstances, including to prevent the continuation of an offence. The 74 motorcycles seized in Penang illustrate how an informal rental arrangement can quickly become a costly problem.
For someone collecting RM200 a month in motorcycle rental, the income may be modest compared with the potential expense of recovering a seized motorcycle, dealing with legal proceedings and paying associated costs. The same risks apply when a motorcycle is lent rather than rented, if the owner permits an unlicensed person to ride it on a public road.
The consequences could be more serious if the rider causes a crash involving injuries or property damage. A valid road tax and insurance policy do not automatically guarantee protection in every situation.
Coverage depends on the policy’s terms, the circumstances of the accident and the applicable law. An insurer may dispute a claim or, where legally permitted, seek to recover payments made.
Owners should therefore check with their insurers before allowing another person to use their motorcycles, particularly under a paid rental arrangement. Private-use insurance should not automatically be assumed to cover commercial rental activity.
Before handing over the keys, owners should verify that the rider holds a valid licence for the motorcycle’s class, confirm that the vehicle’s road tax and insurance are current, and establish whether the intended use is covered by the policy. Keeping a written record of the renter’s identity, licence details, rental period and agreement can also help establish the terms of the arrangement.
However, paperwork does not make it lawful to permit an unlicensed person to ride with the principle applying to Malaysian and foreign riders alike. A rider’s nationality does not determine whether they are legally entitled to operate a motorcycle; the relevant question is whether they hold a valid licence for that class of vehicle.
JPJ’s recent operations show that authorities are paying attention to motorcycles registered under local names but used by unlicensed riders. For motorcycle owners, the lesson is simple, check the licence before handing over the keys. A few hundred ringgit in monthly rental income may not be worth the potential legal, financial and insurance complications if something goes wrong.
PDRM should more often cracked down all this illegal bikes, its really annoying and irritating….should also impose heavy penalties including jail.
.. that there are also other paultan.org articles which show that the cops are actually serious in dealing with these errant 2-wheel road menace.
https://searssabrina.netlify.app/2025/10/14/gombak-police-inspects-124-students-riding-bikes-93-summons-issued-in-two-hour-op-in-rawang/
https://searssabrina.netlify.app/2026/01/02/kl-police-seize-motorcycles-with-tayar-sotong-no-rear-brakes-loud-exhaust-in-ops-samseng-jalanan/
…. that many of these bikers have low incomes, and therefore, the confiscation of their bikes & being issued with summons & fines by the authorities for breaking the law are more like punches in their faces than slaps on their wrists. In addition, someone going by the name “berhati2 dijalanraya” has written in this comment section that, if running the red light leads to an accident or a fatality, offenders can be charged under Section 41(1) for reckless or dangerous driving, which carries heavier mandatory prison terms and heftier fines, in accordance to the Road Transport Act 1987.
sial punya gomen. motor need roadtax insurance for what? its not that they are liable for any road accidents involving them. they are king.