What is social insurance?
The first social insurance was invented in the secondhalf of the 19th century. So we can say that this guarantee of financial security in difficult situations, the phenomenon is quite young in the world. Trade-union social insurance appeared in England, and state insurance in Germany. At the end of the 19th century, these two countries were the most advanced, and therefore they became the most progressive in matters of social guarantees. Bismarck created the first state social insurance fund, which was filled with the state and collected duties. One-third of the insurance premiums were paid by employers, and two-thirds by employees who receive salaries. Thus, trade union and hospital budgets were filled, as well as mutual funds.
The concept of social insurance
In order to understand this phenomenon, it is necessaryknow what social insurance is in the modern world. This phenomenon has become mandatory in all countries and it is now impossible to imagine that somewhere there is no such thing as secure old age. Social insurance is the system that provides protection for the elderly, disabled people, all who have the right to pension provision. This system consists of a number of functional tools that ensure the collection of funds, the formation of a social insurance fund, the distribution of funds between those who are paid, the tracking of income to all those in need, the correct collection of all documents.
Types of social insurance
Social insurance can be collective,state and mixed. Collective insurance is not compulsory social insurance. Only people who join the trade union participate in it. Monthly deducting contributions, they form an insurance fund. Subsequently, by decision of the collective management body of the trade union, the money is distributed among the needy. State social insurance is compulsory and is formed from taxes, which are deducted by all active able-bodied citizens. The employer is obliged to withhold from each employee taxes in the social insurance fund. State insurance finances not only pensions for elderly members of society, persons with disabilities, but also maternity benefits, child allowances, as well as pensions for children deprived of breadwinners. There are projects that trade unions implement together with the state, and this type of insurance is called mixed.
State benefits from the social insurance fund
Let us dwell on the stateBenefits that are guaranteed by the social insurance fund. Most often, citizens use payments on a sheet of temporary incapacity for work, that is, on sick leave. In the same way, the fund pays for sick leave sheets for the illness of the child to parents. The fund also provides payments for maternity and maternity benefits and children. It is also due to social insurance that financially unemployed people are supported. Vouchers to sanatoriums and children's camps for low-income families are purchased from the social insurance fund.
Social insurance against accidents andoccupational diseases involves payments in the event that an employee is injured in the workplace, if, as a result of continuous performance of professional duties, he acquired a specific disease. The size of payments will be determined by Federal Law No. 125 of 1998.