Franchise charging insurance to their customers

2 Jul 2024 · 26 Dhuʻl-Hijjah 1445 AH1 min readEnglish

Question

We have a tyre business which is a Dunlop franchise, they have this tyre insurance for the customers. Any damage to the tyre and they send a replacement after doing their tests. They charge us R10 per tyre for this which I pass onto the customer.

I add it to the cost and then add my markup. I tried getting out of this but it’s compulsory from their side.

How should I handle this… Is it permissible?

Should I add my markup first then the R10. Because my intention is not to make money on the insurance…

Answer

If Dunlop charges you a fixed price inclusive of the R10 which they regard to be for their insurance, it will be permissible for you to buy the tyre since you are paying for the tyre, and not for the insurance. Hence, it is permissible for you to add your markup and sell it to the customer.

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

Answered by: Mufti Zakaria Makada
Checked & approved by: Mufti Ebrahim Salejee (Isipingo Beach)

View original Compare with other Darul Iftas

Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/34877
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-34877

Question

Answer

People also ask

Related fatawa