The rental firms, being the owners of the vehicles for hire, have Compulsory Third Party (CTP) insurance for their cars.
This provides both owners and renters protection against legal obligation when a vehicular accident results in injuries or death to pedestrians, cyclists or other motorists and passengers.
It does not cover damages to the rental car or other people’s property or vehicle. When a person rents a car, his rental car excess is the one that covers vehicle damage.