Business and Dealings

Saved up disability grant

Q: I would be grateful if you can answer the following query for me.

If a man was receiving disability benefit from the government and over the years some was spent and some was left as savings, what should be done with this money from an Islamic perspective.

  1. Once he has received this money is he the sole owner and at liberty to spend as he wills. e.g. Can he go hajj with this money he saved?
  2. Does he have to pay zakat on this money after a year if there is any surplus of this money?
  3. If he was to die and he left a large amount of money then what should the children's of this man do with this money?
  4. Who has more rights and responsibility over this money the sons or daughters?
  5. If a son found out that there is a possibility of that money being hoarded after the demise of this man would it be wrong to inquire about it from the people concerned?

How to dispose of interest

Q: I have an amount in a savings account and I am getting interest for it. Is it Haraam? I never used it but whenever I receive interest, I used to give
it to poor people what ever I received. Is it accepted in Islam? Will there be any benefit? Is it haraam for the poor people whoever receives interest amount from us?

Extended warranty

Q: I intend to purchase a car that has a warranty. The dealer offered to extend the warranty by 5 years for an additional amount of R3000. The warranty covers towing and fixing if the car breaks down and replacement of parts. I notice that the policy is with an insurance company. Is this acceptable?

Interest Transactions

Q: Are any of the following Interest Transactions?

  1. If a person says "Buy this item for me when you go to the supermarket, it costs R40,but I will give you R50 tomorrow?
  2. Loan me R40, I will give you R50 tomorrow, the extra R10 is a gift?
  3. A person gives me R50 and says "Go buy this item for me, it costs R40 and you can keep the change?
  4. If the person insists on giving the extra amount even when I tell him that it is Interest, what should I do with that money?