The insurance policies are inclusive of certain conditions which ensure the ethicality and efficiency of the same. The common insurance principles include principle of causa proxima or nearest cause, loss minimization, subrogation, contribution, indemnity, insurable interest, and uberrimae fidei or utmost good faith (Carroll & Buchholtz, 2006). The main objective of these principles is to provide the people with the protection from any future uncertainties and financial security. It is also the responsibility of the insured people to use the concerned financial cover adequately and in an ethical manner. Seeking opportunities for profits through false statements may lead to distrust among the company and insured individual as it is the straight violation of the terms and conditions. The insurance principles are considered to work best in the situation where both the company and insured person have a strong interaction and relationship in between them. Both the company and individuals must be ethical and well aware of their duties and responsibilities.
Business ethics emphasize on examining policies and conduct and promoting adequate policies and conduct within an organization at both individual and organizational level. Business ethics today are considered to be one of the most significant aspects within a company as it helps in encouraging each of the employees towards professionalism and social well being, which eventually leads to stringer base of customers and competitive advantages. The concept of business ethics is new as in 19th century; business ethics was a set of beliefs incorporated with secular asceticism, in accordance to which the employees focused much more on delayed gratification, rational planning, frugality, self reliance, and hard work (Carroll & Buchholtz, 2006). Today, the business ethics is more about aligning the business activities in accordance with the preferences and demands of the associated stakeholders and legal provision to avoid the occurrence of tensions of controversies. Shift in societal values seem to have played the most significant rules to the increased interest in the concerned topic of business ethics.