What's the difference between commercial insurance and social insurance?

1. Different in nature and function. Social insurance is compulsory, mutual aid and welfare, and its function is to give workers the right to enjoy social insurance benefits and obtain living security through law; Commercial insurance is voluntary, compensatory and profitable. It uses economic compensation means to make insured enterprises and individuals get economic compensation according to economic contracts when they suffer losses.

2. Different legislative categories. 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.

There are different ways to increase the insurance premium. Social insurance premiums are raised in accordance with the unified payment ratio stipulated by the state or local governments, which are shared by the state, collectives and individuals and enforced by the administration; Commercial insurance is based on the principle of voluntary insurance, and the insurance premium depends on the type of insurance and the situation of insurance.

4. Insurance payment methods are different. Social insurance payment is based on the insured's payment years (working years), on-the-job salary level and other conditions, and the payment standard is based on ensuring basic living; Payment of commercial insurance shall be carried out in accordance with the economic contract.