Application of insurance and social insurance

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Social security and commercial insurance handled by financial insurance companies are different in principle, mainly in five aspects: First, the basic attributes are different. Social insurance is an administrative compulsory social undertaking with universality, security and social welfare. The main body of social insurance is the government, which bears the ultimate responsibility when the social insurance fund fails to meet its expenses. Commercial insurance is oriented to enterprises, and its business is a kind of business activity of financial enterprises, which has the nature of profit and compensation. Second, the objects and functions are different. The object of social insurance is all workers, and its function is to protect the basic needs of workers when they temporarily or permanently lose their ability to work or lose their jobs. The objects of commercial insurance are mainly people who voluntarily participate, and the insured can get certain economic compensation according to the compensation when the accident happens. Once the insurance premium cannot be paid, it will not be replenished. Third, the implementation principle is different. Social insurance implements the principles of compulsion, overall planning and mutual assistance, and some projects also implement the principles of linking labor contribution with labor remuneration, linking rights and obligations or reciprocity. On the other hand, commercial insurance implements the principles of voluntariness, profitability and insurance reciprocity linked to insurance premiums. Fourth, financing and payment are different. Social insurance costs are shared by individuals, units and the state. According to the unified rate stipulated in the social insurance policy. The cost of commercial insurance is borne by the insured himself, and the insurance rate depends on the risk situation. The fifth difference is the different types of legislation. Social insurance is an important part of national social policy and labor policy, and it is a basic right given to citizens by the Constitution, so it belongs to the category of social legislation. Commercial insurance is the business activity of financial enterprises and a part of economic and social policies. The rights and interests of the insured and the insured are protected by the economic contract law and belong to the category of economic legislation. Social insurance is compulsory, and it is the right and obligation of every employee to participate in social insurance, while commercial insurance is voluntarily chosen by employees. Commercial insurance can be used as a supplement to social insurance.