What is the ruling on extending car warranties that begin after the factory warranty expires, and are provided by other companies for a specific fee, knowing the permissibility of selling these extensions and earning a commission, and is my work in following up and managing these repairs permissible?
It is not permissible to sell warranty and maintenance services through a separate contract, due to the presence of (excessive uncertainty/risk) and gambling therein, as it is a type of forbidden commercial insurance. The Prophet, peace and blessings be upon him, forbade sales involving gharar. However, if the warranty is part of the commodity when it is sold, then there is no harm in it, because gharar that is secondary is overlooked. Therefore, it is not permissible to independently sell an extended warranty or to act as an intermediary for it. However, there is no harm in working in receiving maintenance requests and submitting reports for cars, even if these reports include those who purchased an independent warranty, provided that one does not assist in the establishment of this warranty.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 19153
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
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