Is it haraam, like a normal contract of insurance, even though the person taking out the contract will not receive CASH if something happens, but will recieve a SERVICE e.g. help with changing a tyre, recharging of battery, towing service, etc?
Answer:
These types of contracts have been the subject of many muftis of our country. Some are of the opinion that such contracts are permissible. Our personal and humble opinion is that this contract is analogous to insurance and not permissible.
and Allah Ta’ala Knows Best
Ml. Imraan Vawda
FATWA DEPT.