The difference between social insurance and commercial insurance

Legal analysis: the difference between social insurance and commercial insurance;

(1) Different implementation methods: Social insurance is enforced by national legislation and belongs to government behavior. All workers who meet the statutory conditions must participate in social insurance in accordance with national laws and regulations; Commercial insurance is a kind of commercial behavior. Insurers and policyholders follow the principle of equality and voluntariness and take out insurance independently.

(2) The purpose of implementation is different: social insurance is the basic right of workers, not for profit, and its starting point is to protect the basic livelihood of workers and maintain social stability; Commercial insurance is the business activity of financial enterprises, and its fundamental purpose is to obtain profits, and on this premise, to give economic compensation according to the insurance contract.

(3) Different characteristics: social insurance is compulsory, mutual aid and welfare; Commercial insurance is voluntary, compensatory and profitable.

(4) Different sources of funds: social insurance premiums are raised according to the unified payment ratio stipulated by the state or local government, and are enforced by the Administration; The commercial insurance premium depends on the type of insurance and the dangerous situation, and shall be borne by the insured.

(5) The government bears different responsibilities: social insurance is the basic right enjoyed by citizens, and the government bears the ultimate responsibility for social insurance; Commercial insurance is restricted by market competition mechanism, and the main responsibility of the government is to supervise commercial insurance according to law and protect the interests of policyholders.

(6) Different types of legislation. Social insurance is the obligation of the state to workers and belongs to the category of labor legislation; Commercial insurance is a kind of financial activity, which belongs to the category of economic legislation.

(7) Different levels of security: social insurance payment is based on the insured's payment years (working years), on-the-job salary level and other conditions, with the premise of ensuring the most basic life; Commercial insurance premium is paid according to the signed economic contract. As long as the insurance conditions are met, the insured can get a high level of protection.

(8) Different implementation subjects and targets: governments at all levels set up special institutions to be responsible for fund raising, payment and management, and their targets are social members within the legal scope; Commercial insurance is operated independently by insurance companies at all levels, and the applicant can be anyone who meets the underwriting conditions.

Legal basis: Article 2 of People's Republic of China (PRC) Social Insurance Law The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance. To ensure citizens' right to receive material assistance from the state and society in accordance with the law in cases of old age, illness, work injury, unemployment and maternity.

Article 2 of the Commercial Insurance Law of People's Republic of China (PRC) The term "insurance" as mentioned in this Law refers to the commercial insurance behavior in which the applicant pays the insurance premium to the insurer in accordance with the contract, and the insurer assumes the responsibility of paying the insurance premium for property losses caused by possible accidents agreed in the contract, or when the insured dies, suffers from disability or illness or reaches the age and time limit agreed in the contract.