Social insurance knowledge

Social insurance is a social and economic system that provides income or compensation for those who lose their ability to work, are temporarily unemployed or suffer lo

Social insurance is a social and economic system that provides income or compensation for those who lose their ability to work, are temporarily unemployed or suffer losses due to health reasons. The following is what I organized, I hope you like it!

Basic concepts of social insurance

Social insurance is the most important part of the social security system. Therefore, when discussing the history of social insurance, social insurance cannot be separated from social security.

The development history of social insurance

There are two milestones in the history of social security: first, Germany initiated the social security system in Bismarck era; Second, in 1935, the United States established a perfect social security system and institutionalized social security, which had a great impact on the globalization of social security system after World War II.

In the development of social security system, World War II was a watershed. Generally speaking, the social security system before World War II may vary from country to country in terms of security items, coverage and security level, but the same thing is that social security only ensures that residents have the necessary means of subsistence. After World War II, social security entered another stage, and welfare countries appeared one after another, with Britain as the pioneer.

In 1970s, the practice of social security system reform appeared in industrial countries.

Characteristics of social insurance

Function 1

The objective basis of social insurance is the risks existing in the labor field, and the object of insurance is the laborer himself;

Function 2

The subject of social insurance is specific. Including workers, their relatives and employers;

Function 3

Social insurance is compulsory insurance;

Function 4

The purpose of social insurance is to maintain the reproduction of labor force;

Function 5

The insurance fund comes from contributions and financial support from employers and workers. Insurance coverage is limited to employees, excluding other social members. The insurance coverage is limited to all kinds of risks in labor risks, excluding other risks such as property and economy. [ 1]

Social insurance function

1. The function of stabilizing social life

2. The function of redistribution

3. Functions of promoting social and economic development: First, the social insurance system plays an important role as an important tool for demand management, thus playing an active role in the economy. Second, the effective use of social insurance funds can promote sustained economic prosperity.

Social insurance premium income

Calculation of social insurance premium

Social insurance must work out a certain proportion of the insured's burden according to the probability of various risk accidents and the total payment expenditure estimated in advance according to the payment standard as the standard for determining the insurance rate. Moreover, unlike commercial insurance, the calculation of social insurance rate needs to consider more social and economic factors besides risk factors in order to obtain a fair and reasonable rate.

Collection method of social insurance premium

1. proportional insurance system

This method is based on the wage income of the insured, and a certain proportion is stipulated to collect insurance premiums. Adopting the proportional system, the initial main purpose of social insurance is to compensate the income lost by the insured in risk accidents in order to maintain their minimum living. Therefore, we should refer to his usual income, on the one hand, as a standard to measure payment, on the other hand, as the basis for premium calculation.

The biggest drawback of the work-based proportional insurance system is that the burden of social insurance is directly related to wages. Whether employers and employees bear social insurance premiums or one of them bears social insurance premiums, the burden of social insurance is manifested in the increase of labor costs, which will lead to capital crowding out labor, which will lead to an increase in unemployment.

2. Equal insurance premium system

That is, regardless of the income of the insured or his employer, the insurance premium of the same amount should be charged. The advantages of this system are simple calculation and easy to be universally realized. Moreover, countries that collect insurance premiums in this way generally adopt an equal share system when paying fees, which is of equal significance. But its defect is that low-income people and high-income people pay the same premium, which is obviously unfair in terms of affordability. "People also: