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Extended Warranty for Cell Phones: What You Need to Know

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: I have a question regarding a specific circumstance that involves extended warranty. When buying a cell phone is it permissible to by extended warranty in the following circumstances:

1. Pay $10 a month and if you lose or break your phone you can get a new one. Plus every six months you can Reade in your old phone pay the difference and get a new one.

2. Pay $100 for two year plan that only includes manufacture defects over that period. If you don’t use it you get $100 back as in store credit after 2 years.

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A: 

1. This is not permissible. It comes under the ambit of the Islamic definition of gambling.

2. This is permissible. You may also refer to other ulama.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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