Main differences between social insurance and commercial insurance

Main differences between social insurance and commercial insurance

1. The realization purpose is different.

Social insurance is the basic guarantee for social members when necessary, not for profit; Commercial insurance is the commercial operation of insurance companies, aiming at profit;

2. Different implementation methods.

Social insurance is compulsory according to national legislation, while commercial insurance follows the principle of "freedom of contract" and is voluntarily insured by enterprises and individuals;

3. Realize the difference between subject and object.

Social insurance is raised, managed and distributed by special institutions set up by the state, targeting social members within the legal scope; Commercial insurance is managed by insurance companies, and the applicant can be anyone who meets the underwriting conditions;

4. Different protection levels.

Social insurance provides the most basic protection for the insured, which is higher than the social poverty line and lower than 50% of the average social wage, with a low degree of protection; The level of protection provided by commercial insurance depends entirely on the agreement of both parties and the amount of premium paid by the insured. As long as the insured meets the insurance conditions and has a certain ability to pay, he can get a high level of protection.