What is the difference between insurance (Life, car, health) and the warranties that are offered by companies on products (Computer, printer, Fridge, Washing Machine, Dryer)? Usually the company offers a warrant for 1 year without any charge, we can extend the warranty for another 3 years by paying more money upfront.
The issue with insurance is that if someone is compelled to take it then scholars allow it, otherwise, they don’t allow it. The exact meaning of being compelled is that it’s necessary from the government, or the person can’t afford to fulfill a basic requirement of life without it such as medical treatment. A person can’t afford a medical treatment in this part of the world; rather it’s expensive only because of the insurance system, which makes cost of living expensive. This is one of the main reasons why insurance is prohibited. However, if someone needs medical attention and it can’t be done without insurance then one can take insurance, otherwise stay away from it. Similarly, taking insurance for driving is important, without which one would be violating the law of the land. So, to have insurance only where it’s needed is fine. Sometimes companies offer warranty on machines, which is a form of gift or grant inclusive of the contract of reparation. In another words if something goes wrong or if the car needs some repairing the company would shoulder the expenses. This is not insurance rather a form of tribute from the company. Hence it would be allowed.
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