[The ruling on compensations when they are issued in the names of other people]

The answer – and from Allah is success – is that the situation differs:
1 – If the entity that is giving aid intends by its aid the needy and those harmed, without specifying individuals, and the person who applies is among the needy and intends, by his application, to apply for himself and not for the names he recorded in his application, then in this case he owns what he has received of the aid. We only said this because what he has taken is like a public right; thus he is more entitled to what he has received, and he only took what he took by his own work and effort: he is the one who went and came, jostled, waited, wrote, registered, toiled, and so on, whereas those who demand it from him had no effort, no work, no going, no coming, and so on.
2 – If the entity that gives the aid has assigned a specific quantity to the tribe of so-and-so, and a quantity to the tribe of so-and-so, and a quantity to the tribe of so-and-so, and has made a specified quantity for each of them according to their number, then if one or two people from the tribe come and apply in the name of the tribe until they receive the specified quantity or most of it, they are not entitled to what they have received; because they have received a specific right whose owner has been determined.
After that, the best of all solutions when a dispute occurs is that the two parties reconcile: the one in whose name (the aid) was registered is given a share, and the one who applied is given a share, according to what the mediator reconciling between the two parties sees.
A dispute of this sort was brought before me, and I resorted to reconciliation.

Source: Min Thimār al-ʿIlm wa al-Ḥikmah vol.2