Legal basis for compensation for social security losses caused by cancellation of individual industrial and commercial households.

The legal basis for compensation for social security losses caused by cancellation of individual industrial and commercial households is as follows:

1. Responsibility of individual industrial and commercial households: According to the law, individual industrial and commercial households should bear the responsibility of paying social insurance premiums on time. If individual industrial and commercial households do not pay on time, they should bear corresponding legal responsibilities.

2. Civil compensation: According to Article 13 of the Tort Liability Law, if an individual industrial and commercial household fails to pay social insurance premiums on time, the beneficiary (i.e. the insured of the individual industrial and commercial household) can claim the right of civil compensation from the individual industrial and commercial household and demand compensation for the economic losses caused by the inability to enjoy social insurance.

3. Administrative punishment: The administrative department of social insurance has the power of administrative punishment for individual industrial and commercial households' failure to pay social insurance premiums on time. According to Article 59 of People's Republic of China (PRC) Social Insurance Law, the scope of administrative punishment includes fines and recovery of social insurance premiums payable. Individual industrial and commercial households refer to business entities that operate in their personal capacity, take profit as the purpose, assume sole responsibility for their own profits and losses.