Question
Are domestic repair schemes permissible? For example, where one pays £10 a month and when the machine breaks down all costs are covered. Similarly, paying monthly installments for healthcare when the government health systems are failing.
Answer
A domestic repair scheme is a form of insurance, and generally Islam does not permit insurance on account of the riba factor. However, if a service agreement is entered into in terms of which the company will service the machine and also do repairs over a fixed period of time, then this is permissible. But just to have a vague agreement that only covers incidental damage indefinitely, this is not permissible.
As regards healthcare, some Ulema have give permission for people who have chronic illnesses or mother who will need maternity care to take out health insurance schemes. One may act on this
Allah Ta’ala knows best
Mufti Siraj Desai
Darul-Uloom Abubakr