Paying a premium for an accounting crime

Purpose - This study aims to look at how the intention of a person when facing a dilemma to choose a good outcome (utilitarian) or a good and ethical process regardless of the outcome (deontological) by raising the case of PT. Asuransi Jiwasraya (Jiwasraya). Design/methodology/approach - This study was conducted using a literature study method where researchers will analyze through previous research and news related to ethics, psychology and Jiwasraya cases. Findings - In the Jiwasraya case, it can be said that the deontology principle has been violated, but the utilitarian principle also cannot provide benefits to the parties who should benefit, namely, the premium payers and the owners of third parties funds. In terms of intentions, at first, Jiwasraya’s management may intend to save and provide benefits to customers and the public who deposit funds at Jiwasraya (utilitarian principle). However, over time, managers choose to “allow” conditions to occur and even begin to engage in activities to take advantage of certain parties and groups by taking policies that are not by the rules (violating deontological principles) for personal gain. Research limitations/implications - This study only discusses the Jiwasraya case through financial and accounting reports. Future studies can continue this research by looking at the Jiwasraya case through the law and legislation to obtain a complete picture. Practical implications - With this research, it is hoped that the authors can better understand that the dilemma the author faces is rooted in the limitations of the abilities as humans; the ethics will influence all intentions for the choices the authors make. Originality/value - This research uses case studies that occurred in Indonesia, the discussion is carried out using a utilitarian and deontological approach that has never been discussed regarding the Jiwasraya case before.