Fatwa #1010912 November 2003South Africa

Is the taking out of a contract with the AA (Automobile Association) of South Africa permissible?

Question

Is it haraam, like a normal contract of insurance, even though the person taking out the contract will not receive CASH if something happens, but will recieve a SERVICE e.g. help with changing a tyre, recharging of battery, towing service, etc?

Answer

These types of contracts have been the subject of many muftis of our country. Some are of the opinion that such contracts are permissible. Our personal and humble opinion is that this contract is analogous to insurance and not permissible.

and Allah Ta'ala Knows Best

Ml. Imraan Vawda
FATWA DEPT.

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