What are the similarities and differences between social security and commercial insurance?

Legal analysis: there are essential differences between social insurance and commercial insurance;

First, the nature is different. Social insurance is enforced by national legislation, which belongs to government behavior, is a welfare undertaking and is non-profit. Commercial insurance is a kind of commercial behavior, and the relationship between the insurer and the insured is completely voluntary. Having the nature of taking profit as the purpose;

Second, the purpose is different. Social insurance is not for profit, its starting point is to protect the basic livelihood of workers, maintain social stability and promote economic development. The fundamental purpose of commercial insurance is to obtain profits, but only on this premise can the insured be given economic compensation;

Third, the sources of funds are different. Social insurance is borne by the state, employers and individuals. Commercial insurance is entirely borne by the insured person;

Fourth, the level of treatment is different. Starting from stabilizing society, social insurance focuses on the protection of long-term basic life, and should be adjusted and gradually improved with the rise of prices. Commercial insurance focuses on one-time economic compensation.

Fifth, the government has different responsibilities. Social insurance is a basic right enjoyed by citizens. The government has the ultimate responsibility to society. Commercial insurance is restricted by market competition mechanism, and the government mainly supervises commercial insurance according to law to protect the interests of investors.

Contact person:

1, the complementarity between social insurance and commercial insurance is mainly reflected in the complementarity of coverage. Commercial insurance only provides protection for those who have the financial conditions to participate in insurance, and the financial burden of the insured is relatively heavy. Social insurance is universal and open to all workers, especially those who cannot bear the economic burden of commercial insurance.

2. Social insurance and commercial insurance are mutually restrictive. In the case of certain insurance resources, the development of one of social insurance and commercial insurance will often bring pressure to the other and even restrict the development of the other.

3. Social insurance and commercial insurance learn from each other in management technology and promote each other. Social insurance and commercial insurance can learn from each other in management technology and investment experience, thus contributing to their healthy development.

Legal basis: Social Insurance Law of People's Republic of China (PRC) Article 1 This Law is formulated in accordance with the Constitution in order to standardize the social insurance relationship, safeguard the legitimate rights and interests of citizens to participate in social insurance and enjoy social insurance benefits, enable citizens to enjoy the fruits of development and promote social harmony and stability.

People's Republic of China (PRC) Insurance Law Article 2 Insurance as mentioned in this Law refers to the commercial insurance behavior in which the applicant pays the insurance premium to the insurer according to the contract, and the insurer is liable for the property losses caused by the possible accidents agreed in the contract, or when the insured dies, is disabled or sick, or reaches the age and time limit agreed in the contract.