The difference between social security and commercial insurance

The differences between commercial insurance and social security are as follows:

1, different in nature, guaranteed by social insurance, 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, the employer 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, the management system is different, and 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.

The materials required for commercial insurance are as follows:

1, driving license;

2. Last year's insurance policy; Generally speaking, it is not necessary to provide insurance renewal for the same company. When insurance is transferred to other companies, individual companies will have requirements.

3. If the applicant is an individual, an ID card is required; If the applicant is an enterprise, organization code certificate.

To sum up, social insurance and commercial insurance are both related and essentially different. Functionally, both of them are social risk resolution mechanisms. Social insurance is the main body of multi-level social insurance system, and commercial insurance can be used as a supplement to social insurance and is an integral part of multi-level social insurance system.

Legal basis:

Article 64 of People's Republic of China (PRC) Social Insurance Law

Social insurance funds include basic endowment insurance fund, basic medical insurance fund, industrial injury insurance fund, unemployment insurance fund and maternity insurance fund. In addition to the basic medical insurance fund and maternity insurance fund combined accounting, other social insurance funds are accounted for separately according to social insurance types. Social insurance funds implement a unified accounting system throughout the country. The social insurance fund is earmarked for special purposes, and no organization or individual may occupy or misappropriate it. The basic old-age insurance fund will gradually implement national overall planning, and other social insurance funds will gradually implement provincial overall planning. The specific time and steps shall be stipulated by the State Council.