Question:

Is it permissible to use A.A. car services?

Some people say it is like renting a house and not staying in there all the time, so you are paying for a service and not using it.

Will the ruling of car motor plan be the same?

What is the Sharíe definition of gambling and interest?

Answer:

1. The AA (Automobile Association) provides essential services to cover any eventuality for;
• On-the-road assistance such as: towing, roadside rescue, roadside security and emergency medical rescue.
• Vehicle maintenance such as: battery services and discounted vehicle inspections.
• Assist services: technical advice and motor related legal advice.

These comprehensive benefits are exclusive to its members and in order to become a member a person is required to pay a fixed fee monthly or annually. After analyzing it from a Fiqhi point of view we conclude that the contract of the aforementioned company is not Shar’iah compliant. First and foremost, there is a possibility that the member does not need to use their services at all while he is a registered member of the company. So, the question would be that what did he pay for in the event where he never happened to receive any services? If we were to consider AA company as an Ajeer Khaas (private employees, that is, persons whose services are retained by one employer only), then it would be possible to justify the payment by saying that AA freed themselves and made themselves available during the contract period, thereby earning the fee. However, from the texts of the Fuqaha we understand that AA cannot be considered as an Ajeer Khaas since they are hiring out themselves to many people in separate contracts and transactions. Since, it is not possible to consider AA as an Ajeer Khaas, many impermissible aspects come into the picture such as: The member does not know (at the time of enacting the contract) as to exactly how much service he will receive (depending on whether or not he gets into a situation where he would need the services) resulting in paying a fee in lieu of an unknown service which is not permissible. Similarly, premiums are paid for certain, but the return is uncertain which is Qimaar (gambling) that is unlawful. The definition of Gharar is also applicable in our scenario because the outcome is unknown. Moreover, it has a strong resemblance with insurance. Therefore, AA (Automobile Association) is not permissible.

The same rule of impermissibility will apply to a motor plan if it is purchased separately. However, if the motor plan comes as an additional benefit when purchasing a new vehicle, then it will be permissible for one to derive benefit from the motor plan because in this case, one is not purchasing the motor plan independently of the vehicle. Rather, it is a fringe benefit or a gift that is being given gratis to the client as part and parcel of the new vehicle that was purchased.

The definition of Ribā: literally means to increase. In Shar’i terminology, it refers to an undeserved excess of wealth that a person imposes on another party in a mutually agreed business transaction.

The definition of gambling, as explained by many jurists (Fuqaha), is to place one’s wealth at stake actually or effectively, in that this wealth may bring more wealth with it or it may be lost completely.

ANSWERED BY: Abdullah Badat
CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B.
Islamic Date:22 Muharram 1440
English Date: 2nd October 2018