Mufti sahab, when purchasing computers,it is possible to purchase extended warranty on the item. This gives the following privileges:
– The buyer can receive support by phone for an extended period of time on the product purchased… e.g without the plan he’d receive support for 90 days … with it he receives support for 3 years
– If the item needs repairs or new parts, the extended warranty will cover the cost of the repairs for an extended period of time.
Is it permissible to purchase such warranty:
1) at the time the item is purchased?
2) after the item has already been purchased?
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
It is permissible to purchase an extended warranty at the time of purchasing the item. In this case, the fee for the warranty will be regarded to be part of the purchase price of the item.
It is not permissible to purchase an extended warranty after purchasing an item as the above interpretation would not be possible in this case.
Purchasing a separate warranty will fall in the category of a conventional insurance. Furthermore, there is an element of uncertainty (gharar) in such a transaction. The item may require repairs in the future or it may not require repairs. If it does require repairs, the extent is unknown. Rasulullah (sallallahu alayhi wasallam) prohibited from a transaction of Gharar.
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah Source