Franchise charging insurance to their customers
Q: 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…
A: 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:
Checked & Approved:
