Fatwa ID: 23414
Title: Buying the warranty for repair or replacement sold with the equipment
Category: Financial Transactions
Scholar: Dr.Salah Al-Sawy
Date: 07/30/2008
Question

Peace be upon you. When buying electronic equipment, like computers, for instance, the manufacturer or sales representative offers a warranty for repair or replacement for a year or longer at a certain price. What is the ruling on buying this type of warranty? May Allah bless you and make you of benefit to others. Peace be upon you.
Answer

In the name of Allah, the Beneficent, the Merciful,

 

All praise is due to Allah and may peace and blessing be upon the Messenger of Allah, upon his household, his companions and whoever follows him. To proceed:

 

It is not permissible to do that with a separate contract due to the invalidity of commercial insurance contracts, since they are based on gross uncertainty. However, if that is included with the product in one deal and it is not singled out with an independent contract, then there would be no sin in it, because things can be forgiven in consequence that would not be forgiven independently, especially considering the dire need for these goods in this day and age.

 

And Allah Almighty is the Most High and He knows best.