Defining Islamic guidelines for extended warranties: Fatwa analysis and practical applications

Mat Jubri@Shamsuddin, Mustafa (2025) Defining Islamic guidelines for extended warranties: Fatwa analysis and practical applications. Journal of Emerging Economies and Islamic Research, 13 (1). pp. 1-15. E-ISSN 2289-2559

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Abstract

This study addresses the challenge of defining comprehensive Islamic guidelines for extended warranties, a topic marked by inconsistent practices and conflicting scholarly opinions. Focusing on fatwa analysis and practical applications, the research bridges the gap between Islamic principles and modern market needs. The study employs a qualitative methodology, conducting extensive library research on academic literature and analyzing 28 fatwa rulings from 1999 to 2024. Findings reveal a spectrum of scholarly opinions, with consensus on standard warranties included in original sales, but divergence on separately purchased extended warranties. The research identifies key parameters for Shariah compliance, including integration with the original sale contract, transparency of terms, and avoidance of excessive uncertainty (gharar) and gambling-like elements (maysir). Practical applications are proposed, including takaful-based models and service-oriented warranties focusing on periodic maintenance. These align with Islamic principles of cooperation (ta'awun) and consumer protection while addressing market demands. The study emphasizes the importance of purchase timing and suggests integrating extended warranties into initial product pricing as a viable approach in Islamic finance. Additionally, it explores the potential of sustainability-focused warranty structures to align with Islamic ethics and contemporary environmental concerns, offering a framework for the practical implementation of Shariah-compliant extended warranties in various market contexts.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Extended warranties, Islamic finance, Fatwa analysis, Shariah compliance, Practical applications
Subjects:	BPK Islamic law. Shari'ah. Fiqh K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP490 Furūʻ al-fiqh. Substantive law. Branches of law. > KBP3190 Economic law K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP490 Furūʻ al-fiqh. Substantive law. Branches of law. > KBP639 Muʻāmalāt
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fiqh and Usul al-Fiqh Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User:	Dr. Mustafa Mat Jubri @ Shamsuddin
Date Deposited:	13 Jan 2025 15:45
Last Modified:	13 Jan 2025 15:46
URI:	http://irep.iium.edu.my/id/eprint/118037

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