Is this ethical for insurance companies like Win Win Life to promote expensive policies by hiding the facts? If yes, explain the supporting ethical theory. If no, suggest an alternative ethical theoretical approach that can be applied as a solution.
Ben has been a fine student at college and his family consisting of widowed mother and a sister were optimistic of Ben being placed in a high pay job. Hailing from a small town like Bhopal, his religion has been considered a minority keeping him challenged in getting placed in government jobs in the state despite his excelling performance in placement tests.
Beena is just 2 years younger than Ben and she has completed her master’s in management has been facing the same challenges as her brother. She is of a marriageable age which worries their mother of her future. Only if Ben is employed will the family be saved.
Having spent most of their father’s earnings in education, the family was finding it difficult to meet the ends and the COVID-19 situations have shattered any scope of being placed anytime soon.
As a life saver, WinWin Life a private life insurance company has hired Ben as a sales representative. He has been working in that company for more than a year now. Although a good communicator and presenter, he has never skipped an opportunity to enhance his marketing and sales skills. The company is happy with his performance and compensates him well including commission on the policies he sells.
Even though Ben sells many policies, the life and endowment plan has been his lucky pick that gives him handsome commission on its sales and profits to the company. The policy promises to protect the family at premature death of insured and good return on retirement.
As the insurance language and jargons are beyond ease, his customers blindly trusts Ben and do not even read the agreement thoroughly. Ben is aware that the policy is expensive and only provides a little protection in case of premature death. He is aware that product is also a low
The company pushes its salespeople with commissions as this policy is high profit segment for the company. Ben could sell other cheaper policies with more benefits to his clients that offer greater protection and return but his commissions would be too low. And his family will suffer if he thinks good for others and the management will not agree to this step.
As an ethical observer,
b) Is this ethical for insurance companies like Win Win Life to promote expensive policies by hiding the facts?
-
- If yes, explain the supporting ethical theory.
- If no, suggest an alternative ethical theoretical approach that can be applied as a solution.
Step by step
Solved in 2 steps
