K.E.

S Shroff College of Arts &

Commerce
A Project On
Business Ethics Followed in any of the insurance
company
Under the Guidance of
Ms. Minal Parekh
Academic Year
2010-11

Prepared By
Name

Roll No.

Ankesh Shrivastav

19

Viral Kava

20

Prakash Makwana

22

Sandip Parmar

26

Pratik Prajapati

30

Dhaval Shah

36

Vivek Singh

43

Hardik Shah

44

What is Ethics?
Ethical issue are one of the great
significance in the financial service
industry.
It lay down norms as rules.
It prescribe the standards.
Insurance is intangible and
inseparable.
In insurance there is heavy reliable
on personal selling.

Insurance & Ethics

Changing high premium.
Delaying payment of valid claims.
Set up high quality service
standards, but does not follow it.
Sales people have to deal with
ethical conflicts.
Introducing policies which do not
match the requirements of
policyholders.

Ethics in insurance today

Compliance with ethics and best
practices should govern market
strategies and operations.
A business that is based on trust,
Strict adherence to ethics of the
profession by underwriters, brokers,
loss adjusters, and agents

Principles of business ethics

Avoid Profiteering
Avoid exploitation of consumers
Encourage healthy competition
Ensure accuracy
Regular tax payment
Proper accounts-keeping
Fair treatment to employees
Keep stakeholders informed
Accept social responsibility

CODE OF ETHICS
To perform his / her duties in high esteem.
To give utmost priority to the client's interest
Not to disclose client's confidential and
personal information
To use appropriate methods in convincing
clients to protect their insurable interest.
To make truthful and accurate presentations.
To improve his / her knowledge of life
insurance through constant study.

IRDA has formulated a Code of

Conduct "Do's" & Dont
Do's

Dont

1. Identification of marketing staff

and the insurance agency - certificate
of License to be shown to the
prospect on demand.
2. Match the needs of his / her client
with various products available with
his insurer.
3. Work out the premium to be
charged so that his / her prospect is
able to weigh the economic or
financial implication of the proposal
on his / her resources.
4. Disclose to the insurer all relevant
information.
5. Assist the policy holder in matters
of
Claim settlement,
Effecting nomination/assignment,
Revival, change of address,

1. Solicit or procure insurance

business without holding a proper
authorization.
2. Induce the prospect to omit to
disclose the material information in
the proposal form.
3. Induce the prospect to submit
wrong information in the proposal
form or in the documents submitted
to the insurer for acceptance of the
proposal.
4. Behave in discourteous manner.
5. Interfere with any proposal
introduced by any other insurance
marketers.

Ethics in insurance: Building relationships

through trust

There are many ways to build trust through

ethics, the most fundamental being the way
the product is designed.
It should offer complete clarity and
transparency and the literature supporting the
product should not over-promise the benefits or
understate the risks.
Ethics is an attitude that needs to touch every
aspect of the customer relationship
"Ethics is an exclusive human concern without
any superhuman authority to back it..

Business Ethics is now a Management

Discipline:

Business ethics has come to be considered a

management discipline, especially since the birth
of the social responsibility movement in the
1960s.
Many researchers, business schools and
managers have recognized this broader
constituency, and in their planning and
operations have replaced the word "stockholder"
with "stakeholder," meaning to include
employees, customers, suppliers and the wider
community.
For example, organizations realized that they
needed to manage a more positive image to the
public and so the recent discipline of public

INSURANCE - The indication of reforms

Promoting and regulating professional
organizations connected with insurance &
reinsurance.
Improving the efficiency while conducting the
insurance business.
Establishing a code of conduct for players in
insurance.
Determining the specification of accounts, and
the manner in which funds are invested.
Laying down prudential norms for investment for
both life and general insurance companies.

HDFC STANDARD LIFE INSURANCE

COMPANY LIMITED
CODE OF CONDUCT AND ETHICS

HDFC STANDARD LIFE INSURANCE COMPANY

LIMITED
CODE OF CONDUCT AND ETHICS

Policies regarding employee conduct and

discipline at LIC

Obligation to maintain secrecy

Participation in Demonstration
Private trading
Part time work
Acceptance of Gift

Gross Misconduct in Insurance

Sector
Engaging in any trade or business
outside the scope of his duties.
Unauthorized disclosure of
information.
Drunkenness or riotous or disorderly or
indecent behavior on the premises.
Willful damage.
Giving or taking a bribe.

 Thanking you