Damage, loss and deposit protocol
Purpose: a fair, evidence-based process for claims about loss, theft or damage, and for returning Deposits. It is designed to stop arbitrary deductions and late claims. Parties: the Customer and the Partner. Clexen's role is only to share records and help the parties talk. Clexen does not decide claims, hold money or guarantee payment.
Acceptance trigger: forms part of the Standard Rental Conditions (Document 06, section 11), so it binds both parties on Choice or Quote.
1. Principles
- Evidence first. A claim rests on the Handover and Return Records, the photos, the log sheets and the repair documents.
- Actual loss only. Recovery is limited to the reasonable cost of repair or replacement, less fair wear and tear, depreciation and any insurance recovery. This is consistent with sections 73 and 74 of the Indian Contract Act 1872.
- Prompt and transparent. Strict time limits apply. Every deduction from a Deposit is explained in writing.
2. What counts as fair wear and tear
The following is fair wear and tear and is not chargeable:
- gradual deterioration from normal, careful use within the manufacturer's limits and the agreed hours;
- consumable parts reaching the end of their normal life, such as filters, brake pads, ordinary tyre wear and wire ropes within their discard criteria;
- minor scuffs consistent with normal site work.
The following is not fair wear and tear, and is chargeable:
- damage from overloading, misuse, collision or unauthorised operators;
- damage from operating against the load chart or on unsuitable ground provided by the Customer;
- contaminated fuel supplied by the Customer;
- theft caused by inadequate site security;
- missing accessories.
The following is not chargeable to the Customer:
- damage caused by the Partner's Operator acting on their own judgement, or by latent defects;
- damage that happens during transport by the Partner.
3. Claim procedure
| Step | Who | Time limit | What |
|---|---|---|---|
| 1. Report | Whoever discovers it | Immediately | Tell the other party; photograph it; secure the Equipment; inform police for theft or serious accidents |
| 2. Notice of claim | Partner | Within 48 hours of the Return Record, or of discovery during the hire | Written notice with photos, description, Handover and Return comparison |
| 3. Joint inspection | Either party may request | Within 3 Business Days of notice | Inspection at Site or the Partner's yard; Customer may attend or nominate a surveyor at its cost |
| 4. Estimate | Partner | Within 7 Business Days of notice | Itemised estimate or quotation from an authorised service centre, with part numbers and labour hours |
| 5. Response | Customer | Within 7 Business Days of estimate | Accept, accept in part with reasons, or dispute with reasons |
| 6. Settlement | Both | Within 15 days of response | Pay the agreed amount, or deduct it from the Deposit with a written statement; actual repair invoices to follow |
| 7. Dispute | Either | After step 5 | Document 06, section 16: negotiation, then arbitration. Clexen will share its records on request |
A Partner who misses the step 2 deadline for damage visible at Return cannot later claim for it, unless the Customer prevented inspection.
4. How the amount is worked out
- Repairable: the reasonable repair cost (parts plus labour) at fair market rates.
- Lost hire time: rent for the repair period, limited to the minimum billing for one month or the actual repair time, whichever is less. Recoverable only if the Partner shows it actually lost a hire, or could not supply a committed order.
- Total loss or theft: the fair market value of the Equipment immediately before the loss, based on age, condition and a valuer's or insurer's assessment, less salvage and any insurance recovery.
- Insurance: if the Partner's policy covers the loss, the Partner claims under it. The Customer bears only the agreed deductible (if any) and uninsured amounts caused by its breach. The Customer cooperates with the insurer.
5. Deposits
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A Deposit is optional. Its amount, form (bank transfer, cheque, bank guarantee) and conditions must be written in the Quote.
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It is paid only to the Partner's business bank account. Clexen never holds or collects Deposits.
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The Partner gives a receipt for the Deposit.
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Within 15 days of the Return Record, the Partner refunds the Deposit, less:
- unpaid rent;
- amounts accepted or established under section 3.
The Partner gives a written statement with each deduction and its evidence.
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A Deposit may not be withheld for a claim that is only disputed. The Partner may hold back only the disputed amount, and only while the dispute process in section 3 is followed in good faith.
6. Clexen's records
On either party's request, and subject to Document 10, Clexen will share what it holds:
- the Request;
- the Chosen Quote;
- messages exchanged through Clexen;
- dates;
- any Handover or Return Record uploaded.
Clexen does not certify their accuracy.
Annex: Damage claim notice (template)
To: Customer company, site in-charge · Copy: support@clexenrentals.com Clexen request no.: ____ · Equipment / reg. no.: ____ Date of Return Record / discovery: ____ Description of loss or damage: ____ Evidence attached: Handover photos no. __; Return photos no. __; log sheet dates __; other __ Proposed joint inspection: date ____ at ____ We will send an itemised estimate within 7 Business Days. Deposit held: INR ____; amount held back pending this claim: INR ____ (no more than the estimated claim). Name, designation, signature, date