What's the difference between social security bureau and insurance company?

Regarding the difference between social security and commercial insurance, the reply of Shenzhen Social Security Bureau in official website is:

(1) Different implementation methods: Social insurance is enforced by national legislation and belongs to government behavior. All workers who meet the statutory conditions must participate in social insurance in accordance with national laws and regulations; Commercial insurance is a kind of commercial behavior. Insurers and policyholders follow the principle of equality and voluntariness and take out insurance independently.

(2) The purpose of implementation is different: social insurance is the basic right of workers, not for profit, and its starting point is to protect the basic livelihood of workers and maintain social stability; Commercial insurance is the business activity of financial enterprises, and its fundamental purpose is to obtain profits, and on this premise, to give economic compensation according to the insurance contract.

(3) Different characteristics: social insurance is compulsory, mutual aid and welfare; Commercial insurance is voluntary, compensatory and profitable.

(4) Different sources of funds: social insurance premiums are raised according to the unified payment ratio stipulated by the state or local government, and are enforced by the Administration; The commercial insurance premium depends on the type of insurance and the dangerous situation, and shall be borne by the insured.

(5) The government bears different responsibilities: social insurance is the basic right enjoyed by citizens, and the government bears the ultimate responsibility for social insurance; Commercial insurance is restricted by market competition mechanism, and the main responsibility of the government is to supervise commercial insurance according to law and protect the interests of policyholders.

(6) Different types of legislation. Social insurance is the obligation of the state to workers and belongs to the category of labor legislation; Commercial insurance is a kind of financial activity, which belongs to the category of economic legislation.

(7) Different levels of security: social insurance payment is based on the insured's payment years (working years), on-the-job salary level and other conditions, with the premise of ensuring the most basic life; Commercial insurance premium is paid according to the signed economic contract. As long as the insurance conditions are met, the insured can get a high level of protection.

(8) Different implementation subjects and targets: governments at all levels set up special institutions to be responsible for fund raising, payment and management, and their targets are social members within the legal scope; Commercial insurance is operated independently by insurance companies at all levels, and the applicant can be anyone who meets the underwriting conditions.

As can be seen from the above eight points, social security is a kind of "all-inclusive" insurance, which can only guarantee the most basic needs of social members, the "most basic". This is why social security will not reimburse most of the treatment expenses for imported drugs, imported equipment and some serious diseases, and why the pension in social security will be much lower than the salary at work. However, commercial insurance is to protect everyone's living needs. For example, critical illness insurance can guarantee the expenditure of major diseases, accident insurance can guarantee the sudden loss in the face of accidents, and commercial endowment insurance can guarantee the quality of life after retirement. If you still need the quality of life, then there is a need to buy commercial insurance.