What's the difference between commercial insurance and social insurance?

Commercial five insurance and social security five insurance are two different insurance systems, which are obviously different in definition, coverage, payment method and purpose.

I. Definition and coverage

Five types of commercial insurance: five types of commercial insurance purchased by enterprises independently according to their own needs and budgets, usually including commercial endowment insurance, commercial medical insurance, commercial industrial injury insurance, commercial unemployment insurance and commercial maternity insurance. The scope, degree and specific terms of these insurances shall be agreed by insurance companies and enterprises, and shall be implemented in accordance with the contract.

Five social insurances: refers to five basic insurances in the social insurance system established by the state according to law, including basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance. The coverage, coverage and payment ratio of these insurances are clearly stipulated by national laws and regulations, aiming at providing basic living security for the broad masses of workers.

Second, the mode of payment

Commercial five risks: the payment method and amount are mainly determined by the enterprise and the insurance company through consultation. Usually, enterprises will bear most of the payment responsibilities, and employees may have to bear part of the expenses. The payment amount and proportion of commercial five insurance can be flexibly adjusted according to the economic situation, employee demand and market situation of the enterprise.

Five risks: the subject of payment includes both enterprises and employees, and the proportion and amount of payment shall be implemented in accordance with the provisions of the state or local government. Enterprises need to pay social insurance premiums according to a certain proportion of employees' total wages, and employees also need to pay according to a certain proportion of personal wages. The payment amount and proportion of social security five insurances are relatively stable, which is mandatory and normative.

Three. Purpose and function

Business five risks: its main purpose is to improve employee welfare, attract and retain talents, and at the same time reduce the economic burden of enterprises when employees encounter risks. The protection degree and scope of commercial five insurances are usually more flexible and extensive, and can be customized according to the needs of enterprises.

Five social security risks: Its main purpose is to ensure the basic life and social stability of citizens, and to provide necessary material help to workers in old age, illness, work injury, unemployment and childbirth through social assistance. The five social insurances are universal and fair, and they are an important part of the social security system.

To sum up:

There are obvious differences between commercial five insurance and social security five insurance in definition, coverage, payment method and purpose. Commercial five insurance is more flexible and customized, mainly used to improve employee welfare and attract talents; The five social security risks are universal and normative, aiming at providing basic living security for the majority of workers.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 2 provides that:

"The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, work-related injury insurance, unemployment insurance and maternity insurance, and protects citizens' right to receive material assistance from the state and society in accordance with the law in case of old age, illness, work-related injury, unemployment and maternity. "