ETHICS IN ADVISORY & MEDICAL PROFESSION i.e. INSURANCE

04/19/23JAMNALAL BAJAJ INSTITUTE OF MANAGEMENT STUDIES, MFM-III1

Presented ByJASASKAR BOSE – 10SEEMA LOBO – 49DEEPAK KAMATH – 34VIJAY KUMAR – 48ANIL MAHATO – 50KANHIYA MISHRA -56

ETHICS:

04/19/23JAMNALAL BAJAJ INSTITUTE OF MANAGEMENT STUDIES, MFM-III2

What is Ethics ?Business Ethics is a Management Discipline

Since 1960 , Social Responsibility MovementAt Par with Other Management disciplinesEthics From B-schools

Qualities Society Views as Ethical:Honesty , IntegrityResponsibilityRespect & Courage

Insurance Reforms- IRDA

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Promoting and regulating organizations connected with Insurance and Reinsurance

Improving efficiency while conducting businessEstablishing code of conduct for the players in

insurance Determining the specification of accounts and

the manner in which the funds should be invested

Laying down prudential norms for life and non life insurers

The Six Step Insurance Planning Process

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Establishing and defining the clientGathering Client Data, including GoalsAnalyzing and evaluating the financial statusDeveloping and presenting Financial planning

recommendations and alternativesImplementing the Financial Planning

recommendationsMonitoring the Financial Planning

recommendations

Ethics in Insurance – Present Scenario

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o Need to address unethical practiceso Insurance Operators need to devote more

resources to the issue of ethicso Operators should operate by the rules laid

down by trade bodies and regulatory authorities

o Collective resolve by all parties is a must

Insurance and Ethics

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Man’s attempt to insure anything is LimitedIncorrect Notion “Oh! Now I don’t have to

worry”Gap between Customer Expectations and

Genuine Insurable RiskSometimes disappoints, frustrates CustomersInsurance has played an important role for

development of World Economies but at times failed to be a good corporate citizen

Formalized way for people to come together to help each other

Code of Ethics – Insurance Marketing

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1. To perform his / her duties in high esteem.2. To give utmost priority to the client's

interest.3. Not to disclose client's confidential and

personal information4. To ensure prompt and sincere service to the

client and his or her family.5. To use appropriate methods in convincing

clients to protect their insurable interest.

Code of Ethics – Insurance Marketing Cont …

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6. To make truthful and accurate presentations.7. To improve his / her knowledge of life insurance

through constant study.8. To set a plan and work accordingly.9. To maintain fair relations with colleagues.10. To strictly follow the concerned laws and

regulations.11. To obtain proposals only on the lives of persons

who fits in the physical, moral and financial standard defined by the Company.

12. To be loyal to the Organization.

IRDA – Code of Conduct --- Do’s

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Identification of marketing staff and the insurance agency.

Match the needs of his / herBring to the notice of his / her client the

implication of various questionsDisclose to the insurer all relevant information.Inform the prospect about acceptance or

rejection of the proposal .Assist the policy holder in various matters

IRDA – Code of Conduct --- Don’ts

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Solicit or procure insurance business without holding a proper authorization

Induce the prospect to submit wrong information.Offer different terms and conditions other than

offered by the insurer.Receive a share of the policy proceeds from the

beneficiary.Compel any person to terminate an insurance

contract with any insurer Remain or become a director of any insurer

carrying on insurance business in India.

CONCLUSION

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• Growth in Private sector of over 39 % share in 5 Years

• Transparency and clarity in products offered

• Good Ethics makes Good Business and lack of ethics has serious consequences / cost

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“It is easy to find successful businessmen, but not so easy to find men who put character above business”

- Orison Swett Marden 1908