What is social insurance?

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1. Commercial insurance refers to a form of insurance that operates by concluding an insurance contract and aims at profit.

2. Social insurance is a social and economic system that provides income or compensation for people who have lost their ability to work, are temporarily unemployed or suffer losses due to health reasons.

The differences are as follows:

1, the nature of existence is different: social insurance is not for profit; Commercial insurance is operational, with profit as its purpose.

2. Different insurance methods: Social insurance is based on labor relations. As long as labor relations are formed, employers must handle social insurance for employees; Commercial insurance is purchased voluntarily, and the relationship between the two parties is established through contract.

3. Different management departments: social insurance is managed by government functional departments; Commercial insurance is managed by enterprise insurance companies.

4. Different participants: the participants in social insurance are laborers, whose scope is stipulated by law and limited by qualification conditions; The object of commercial insurance is anyone, as long as the insured is willing to insure and perform the contract.

5. Different coverage: social insurance can provide basic living security for the vast majority of workers; Commercial insurance only provides protection for some policyholders.

6. Different sources of funds: the social insurance fund is shared by the state, enterprises and individuals; The funds for commercial insurance shall be borne by individuals alone.

7. Different compensation treatment: Social insurance treatment generally takes the form of monthly payment, which is adjusted year by year with the increase of average social wage; Commercial insurance pays in accordance with the principle of "more investment and more insurance, less investment and less insurance, and no investment and no insurance".

8. The nature of time is different: social insurance is stable and continuous; Commercial insurance is one-off and short-term.

9. Different legal norms: social insurance is regulated by labor law and its supporting regulations, while commercial insurance is regulated by economic law, commercial insurance law and its supporting regulations.