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What is the ruling on receiving compensation from an insurance company for a car accident caused by another insured party? And is it obligatory to dispose of a portion of this money if it leads to improvements in the car that were not directly caused by the accident? And is it permissible to dispose of ill-gotten wealth by using it in a building dedicated to memorizing the Holy Qur'an?

1 min readAlso available in العربية

It is permissible for the injured party to receive compensation for damages from an insurance company, because they are not responsible for money earned by others if it is given to them in exchange for their rightful entitlement through legitimate means.

If the repair includes parts that were previously damaged as part of what the accident affected, or if their repair is consequential to the repair of what the accident affected, then there is no harm in that.

It is permissible to dispose of ill-gotten wealth by donating it for the construction or maintenance of a Quran memorization center, or similar endeavors that serve the general welfare of Muslims.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy