Question

Azaan has been working for an HDBL life insurance company as a sales representative for more than five years in Sur, Sultanate of Oman. He achieves his targets on time because of his product knowledge, good communication and presentation skills. He regularly attends several workshops on sales and marketing to enhance his marketing and sales skills. HDBL Life Insurance Company is happy with Azaan's performance and gives him a good salary and commission on additional sales. Azaan has several general life insurance products to sell, but the company pushes him to sell the HDBL-19 plan by offering high commission. HDBL-19 plan is a combination of savings and insurance and more profitable for the company. The product promises to protect the family in case of premature death as well as a good return on an investment after retirement. The language used in the agreement paper is hard to understand. Usually, clients trust on Azaan and do not read the agreement thoroughly. Azaan knows that the product is expensive and provides a little protection in case of premature death. Another disadvantage of having this product is a low return on investment after its maturity. Azaan has many other low-priced products that can give more benefits to his clients, but less commission to him. Question 1 i. Azaan cannot earn a commission, if he sells products considering consumers benefits. What should Azaan do? Justify your answers with valid reasons. [3 Marks - Answer in 75-100 Words] ii. Is it ethical for insurance companies to promote expensive policies by hiding the facts? Justify your answer with valid reasons. [4 Marks - Answer in 100-125 Words] iii. Can Azaan justify himself by saying that hiding the facts doesn’t mean lying? Justify your answer with valid reasons. [3 Marks - Answer in 75-100 Words]

Answer 1

Ans:-

i):- On the off chance that we see this case it comprises of different partners as a company, employee, customer, customers families, administrative power, and any individual who is influenced in any capacity by this.

In the event that we dissect this case from all possibilities, at that point it is an instance of ethics and business ethics. On the off chance that we characterize Ethics, it's only spirit.

Business ethics can be said as a lot of rules and strategies than an organization needs to observe or set of decides and rules that administer business and it's manageable turn of events. Ethics is an exceptionally huge subject and covering every single angle isn't workable for any business.if we investigate this case from all viewpoint then it is as :

For the company:-

From the company's perspective, it is totally unscrupulous. The company should consistently think of a product that is customer-situated not company arranged and this is the key for any business to run gainfully in the long term. Today or tomorrow reality will come out and afterward it won't just stain the company's picture however the individuals can likewise sue it for misrepresentation as they are concealing things.

From Azaan perspective:-

For Azaan, it is a two-sided undertaking, on one hand, he needs to procure and care for his family, and besides, he additionally needed to search for his customer's advantage as they trust him. In the event that we examine the case structure Ahmad's perspective, at that point he got the opportunity to sell the product of the company no issues what and in the event that he won't others will without a doubt.

For this situation, he ought to illuminate the customer structure his side and pitch for the product which will procure him benefit as he is an employee who works for an organization from where there is normal weight on him to sell and meet his targets.

For customer prespective:-

On the off chance that we take a gander at this point of view, at that point most likely this is a fragment which is at misfortune. Be that as it may, rather than trusting anybody, they should themselves ask into the strategy investigate the terms and conditions, and afterward buy it.in the present world self nature and self-trust is a higher priority than others.

Azaan ought not swindle his customers by selling them unfruitful products. His customers trust him for his earnestness and genuineness. So he should't let individual increases get in the middle of it. Since the products are disaster protection he ought not let some unimportant individual advantages break the trust that his customers have on him. Being exploitative will get individuals by on more than one occasion however trustworthiness will take them a long way.

ii):- Hiding things in the fine print might be lawful, yet it's tentatively ethical. The insurance business is regularly blameworthy of numerous instances of this, for example, expanding the annual renewal costs after the principal year, or being quite certain about what does and doesn't go under the overabundance. Different clinical techniques are viewed as corrective or superfluous relying upon where you live, so how would you know your insurance supplier will cover a particular activity or method?

Moreover, no one prefers discovering their company is utilizing their cash for goals that conflict with individual conviction. Numerous organizations use under-essayists, auxiliary organizations and different intends to go through cash, make the fantasy of rivalry or basically serve their own advantages.

HDBL life insurance company approached Azaan to sell costly designs for the company's benefit. It might be beneficial yet it isn't ethical and an insurance company ought to never do that.

iii):- Fairness is a basic issue including any dealings you will have with a customer.

Reasonableness is frequently utilized as a rule terms to portray the overall estimation of a specific arrangement. In any case, when applied to money related arranging it hinders you with increasingly explicit necessities. Reasonableness requires unprejudiced nature, scholarly trustworthiness, and divulgence of irreconcilable situations. Basically, reasonableness suggests a standard of managing where you would "do unto others" and you would "have them do unto you."

An essential guideline of reasonableness is exposure. As an expert, you are relied upon to reveal all material data that is pertinent to the customer's circumstance. Instances of material data that ought to be uncovered incorporate (yet isn't constrained to) irreconcilable circumstances, remuneration as well as charges, understanding and instruction, and changes in your business association.

It is normal that you will make such divulgences in a convenient manner. Doing so will allow your customer the chance to assess the data and to settle on an educated choice. Inability to give the data in auspicious design would put the customer off guard - out of line position.

It is suggested that, preceding offering any types of assistance or exhortation, you ought to uncover any potential clashes that may perhaps influence your judgment. In the event that the customer consents to proceed with the relationship resulting to the revelation, they can't later guarantee they were unreasonably preferential.

Azaan can't legitimize himself by saying that hiding realities doesn't mean lying. He should be reasonable and just. He ought to unveil the real factors that ought to be known to the customers.

This case is an ideal case of doing unethical business ethically and prooving everything has two appearances. To maintain a business one needs to move by keeping up balance.it has set down standards and guidelines and tailing it .