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Are extended warranties permitted?

Answered as per Hanafi Fiqh by Qibla.com

Answered by Shaykh Faraz Rabbani

Please could you tell us whether it is permissible, when buying a domestic appliance to pay extra for an extended warranty.

Answer:
In the Name of Allah, Most Gracious, Most Merciful

Walaikum assalam wa rahmatullah,

Extended warranties that have specific stipulations are permitted, valid and binding contractual conditions.

This because they do not go against the principles of the Shariah, do not normally lead to dispute, and are customary market practice. [see: Mufti Taqi Usmani, Dars Tirmizi]

The Majalla, the definitive codification of classical Hanafi commercial law, states,

“Item 188. In the case of a sale concluded subject to a condition sanctioned by [f: sound] custom [f: that does not contravene the principles of the Shariah] established and recognised in a particular locality, both sale and condition are valid.”

See answer below, too.

And Allah alone gives success.

Wassalam,

Faraz Rabbani

This answer was indexed from Qibla.com, which used to have a repository of Islamic Q&A answered by various scholars. The website is no longer in existence. It has now been transformed into a learning portal with paid Islamic course offering under the brand of Kiflayn.

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