The insurance sector is one of the most growing and highest profit-making sectors in the country. Its contribution to the GDP growth rate is highly dominant. It is important to ensure that the insurers work ethically for the economic as well as the social development of the country. The study is undertaken to analyze the extent of ethics followed by the insurance companies particularly regarding claim settlements from the perspective of the insuring public. A descriptive study based on the secondary source of various insurance cases is undertaken regarding repudiation of claims. The results prove that the insurance companies often take advantage of the lack of awareness among the insuring public regarding insurance regulations. Insurance Regulatory and Development Authority, along with the government, should take more efficient steps to ensure that the insurers work ethically for the betterment of the insuring public. Insurance intermediaries should be highly trained in this regard. However, the study is limited to claim settlement procedures.