Unethical Business Practices

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Unethical practices are prevalent in modern businesses, especially in the service industry. However, the behavior is rampant in the insurance industry and I had a first-hand experience of this a few years ago. In 2019, I was searching for a Comprehensive Health Insurance Product for my family and me when I came across an advert from a local insurance company and it looked promising. Afterward, on 15th December, I contacted one of their agents enquiring about the available covers for diabetics. The agent recommended one which I bought and she advised me to split the cover to enable me to ensure the full sum which I did. Three days later I received an email notifying me that the company had declined the proposal since their underwriting personnel mentioned that was unqualified because of being less than forty years old and suffering from diabetes.

That sounded absurd since I had informed the agent that wanted a plan covering diabetes besides disclosing the personal details before purchasing the package. I reached out to the company and they informed me that they do not have such plans or policies covering diabetes. I immediately requested a refund for the money I had spent and they told me to wait for seven business days.  I waited patiently until 27th December and called the insurance company explaining the concern that they had not refunded my money but they started blaming me claiming I never provided them with any information regarding the whole issue. I was angry and reprimanded them after which they agreed to refund the whole amount, I had paid but they told me to wait until 9th January 2020. However, they never made the payment despite enjoying my money for three weeks.

Later, the agent claimed that the company was not liable to make any payment since I did not sign a physical contract, and based on their terms, they do not honor documents signed online. Although I submitted my email reference number I never any progress despite the company making promises to refund my money within seven days. Afterward, I raised my grievances at two levels but never received any response after which I considered reporting the matter to IRDA but the company would not budge. The insurance company’s customer service agents constantly made excuses such as their payment gateways being down, their card handling agencies experiencing problems, and other illogical reasons until I hang up. This year I have another health insurance cover subject for renewal in December 2020 and I will not renew it once that duration expires.

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Capitalism versus Socialism

Capitalism and socialism shape the social, economic, and political systems across the world. Under socialism, the state undertakes all legal decision making, production as well as the distribution of resources and the citizens depend on the state government to provide for healthcare, food, and employment among other essential services (Thangavelu, 2019). On the other hand, under capitalism, individuals or corporations, instead of the state, own and regulate production factors like labor, natural resources, capital goods, and entrepreneurship (Thangavelu, 2019). In essence, the free market determines the success of capitalism based on supply and demand while the effectiveness of socialism is dependent on the government. 

Countries like Cuba, China, Russia, and North Korea practice socialism while Western countries such as the United States favor capitalism. While the two systems are significant in world politics, they have their advantages and shortcomings. A capitalist economy has the following advantages. First, people have the freedom to choose their preferred products and services which creates competition leading to improved economic status (Thangavelu, 2019). Secondly, there is an efficient economy since companies produce goods and services based on demand creating incentives that reduce costs while avoiding wastes (Thangavelu, 2019). Thirdly, capitalism promotes economic advancement leading to better living standards and increased gross national output. However, capitalism is disadvantageous in that it promotes monopoly by powerful firms who abuse their power and charge higher prices.

Secondly, it promotes social inequality since only a few people own the wealth while the majority remain poor. Thirdly, a capitalist economy is subject to recession due to business decline leading to more unemployment among other social problems. Socialism has the following advantages. First, citizens receive equal treatment from the government through equal wealth distribution (Thangavelu, 2019). Secondly, the government enhances fairness and equality in resource distribution and utilization and thus reduces resource exploitation by private enterprises. Thirdly, socialism eliminates class differences between the rich and the poor due to the equal distribution of wealth. However, a lack of incentives due to government ownership of national resources promotes inefficiencies among workers leading to low production (Thangavelu, 2019). Secondly, socialism leads to increased government failures and inefficient resource allocations as well as discouraging individual investments. 

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