Main differences between commercial insurance and social insurance

The difference between commercial insurance and social insurance;

1, different in nature: social insurance is guaranteed and not for profit; Commercial insurance is operational and aims at pursuing economic benefits.

2. The foundation is different: social insurance is based on labor relations. As long as labor relations are formed, employers must handle social insurance for employees; Commercial insurance is voluntary insurance, and the rights and obligations of both parties are established in the form of contracts.

3. Different management systems: social insurance is managed by government functional departments; Commercial insurance is operated by an insurance company of enterprise nature.

4. Different objects: the object of participating in social insurance is workers, whose scope is stipulated by law and limited by qualifications; The object of commercial insurance is a natural person, and the applicant is generally not restricted, as long as he is willing to insure and fulfill the terms of the contract.

5. The scope of protection is different: social insurance solves the living security of the vast majority of workers; Commercial insurance only solves some problems of the insured.

6. Different sources of funds: the social insurance fund is shared by the state, enterprises and individuals; Commercial insurance funds are only a single source of insurance premiums for policyholders.

7. Different treatment schemes: the principle of social insurance benefits is to ensure the basic livelihood of workers. Insurance benefits are generally paid monthly and adjusted every year with the increase of average social wages; Commercial insurance determines the claim standard according to the principle of "more insurance, less investment and less insurance, no investment and no insurance".

8. Different timeliness: social insurance is a stable and continuous system of the country; Commercial insurance is a one-off, short-term enterprise behavior.

9. The legal basis is different: social insurance is legislated by labor law and its supporting regulations, while commercial insurance is legislated by economic law, commercial insurance law and its supporting regulations.

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