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Thursday, 27 November 2014

What is The Diferences Between Social Insurance and Commercial Insurance

Social insurance
Generally called the Social Security ( National Social Security System ) is a program organized insurance required by the law , with the aim to provide basic protection for the welfare of society . Social insurance is an insurance program obligatory organized by a legislation , with the aim to provide basic protection for the welfare of society

Social insurance in general :
  • Social insurance offered through some form of government and mandatory ( compulsory basis)
  • Social insurance is designed to provide benefits to a person whose income is lost due to social and economic conditions or because of an inability to control individual solutions
  • The scope of social insurance
  • Guarantee accident insurance
  • Security retirement and pension insurance
  • Guarantee health care
  • Guarantee funerals
  • Unemployment insurance Guarantee
Commercial insurance
  • Join voluntary : If commercial insurance , the inclusion of participants voluntarily because they want to be protected.
  • Profit : The commercial insurance principle behind the system uses capital to make profits for the company . " Insurance Fund on a commercial insurance company ( private ) used for the development of the company ".
  • The benefits in accordance with the premium paid : Not all benefits covered by commercial insurance , Dinna say , the premium is calculated is also adjusted to the prevalence of illness , age , type of illness , sex and so on . So getting sick or getting older as much risk of disease , the higher the costs untu premiums .

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