What is the ruling on the money earned by the questioner from his project after he hid his car and claimed it was stolen to collect the insurance money, then returned the amount to the company after his project succeeded, knowing that his intention was to borrow and not to defraud?

Commercial insurance is prohibited because it is based on gambling (maysir) and uncertainty (gharar). Fraud against insurance companies is impermissible because it constitutes consuming wealth unlawfully and deceit, and whoever commits it must repent.

Regarding the ruling on money earned from a project using unlawfully acquired funds, scholars have differed concerning the growth resulting therefrom. The preponderant opinion is that the profit should be divided equally between the one who took the money (the business owner) and the one from whom it was taken (the company), by analogy with mudarabah.

Since this company does not truly own the money, as it results from prohibited insurance contracts, the half that would belong to the company must be spent on general Muslim welfare, such as for the poor, the needy, hospitals, and schools.