THE ROLE OF PERCEPTION OF FAIRNESS, INDIVIDUAL ATTITUDES, MORAL VALUES, AND UNETHICAL BEHAVIOR AND ITS IMPLICATION TOWARDS FRAUD TENDENCY ON INSURANCE CLAIM IN INDONESIA

Abstract

Purpose The purpose of this research is to find whether perception of fairness, individual attitudes, and moral values towards unethical behavior as the factor of someone intention for doing frauds in the case of insurance claim. Method Quantitative method was applied in this research, and the questionnaire as the instrument to collect the data. The questionnaire consists of 25 items of questions spread through online and printed questions. In this research, also used the demographic variables that consist of gender, age, occupation, income, etc, from the respondents who filled the questionnaire. To test the framework and the hypotheses, structural equation modeling applied in this research. Findings This study has found that individual attitude gives the impact towards behavior of somebody, same with moral values from insurance customer. However in the case of insurance frauds, there is one other factor where perception of fairness has a possibility to affects insurance frauds. Originality The existence of customer’s fraud, has been discussed by other researches where mostly come from the western countries, at this point, we see those countries which has quite different thoughts on insurance service and perception. In this research, researcher used the same approach and used in the developing countries as eastern culture in Jakarta and the surroundings.