Insurance is a set of government assistance measures to protect people from incidents of a different nature, due to which a person may lose the opportunity to earn money.
There are a number of laws on compulsory social insurance, the essence of which is focused on providing legal and monetary guarantees when the average person has experienced a significant change in life:
- he undermined his he alth, in connection with which he needs treatment;
- acquired the status of a person with disabilities;
- situation of reduction or unemployment;
- loss of family breadwinner.
In such situations, the insured Russian has the right to compensation for damage caused by negative impacts. When an insured event occurs, a certain amount of money is paid to the citizen.
FZ "On Compulsory Social Insurance" establishes the legal and economic foundations of this system in the Russian Federation on a mandatory basis. Hedefines the general rules for the functioning of the formed funds.
The social insurance system in Russia is a set of norms, guarantees and institutions whose activities are aimed at ensuring the mandatory protection of low-income citizens and people with disabilities.
This system is the core of the country's social policy. However, it retains its financial independence and is not an element of the economic sphere of the state. The system includes a number of regulations governing the distribution of money among different sections of the working population.
The structure includes compulsory social insurance and voluntary insurance.
A number of extra-budgetary companies that implement municipal policy in the social sphere are working in this direction. The main organization is the Social Insurance Fund (FSS). It has a special status, and the system itself can be considered as a set of ways to insure the risks of disability and monthly income, which are an indispensable element of the insurance industry.
The current system can also be seen as part of government policy regarding the insurance of subjects and their specific protection against existing public financial risks.
History of system development
Social insurance was first introduced in Russia in 1912. It included only sick leave and he alth insurance.accidents, which concerned only employees of manufacturing companies.
In the USSR, the government was responsible for this aspect of labor activity. Since 1933, trade unions and a specially formed fund have been working in this direction.
This time was the starting point for the formation of the first fund organization in this area. It has become a unique non-budgetary institution. Until the collapse of the union in 1990, all social transfers were made through the fund.
During perestroika, the social insurance system was significantly transformed and received the usual Western European forms. For the first time in the history of the country, the FIU and the FSS were created.
At that time, the he alth care system was in a sad state, and the unemployment rate was immensely high. This became the main prerequisite for the adoption in 1991 of laws that relate to the employment of the country's population and the he alth insurance of people. However, their implementation began only in 1992.
As a result, the Employment Fund and the Compulsory He alth Insurance Fund (with national and territorial divisions) were formed.
Since the early 2000s, the Employment Fund has been abolished. The prerequisite for this was the unproductiveness of solving the tasks that were set by the state before him. The era of complete unemployment has passed, and with it the need to maintain such a structure has disappeared.
The rights of non-working citizens were not ignored. All payments that they were en titled to receive were made from the general state budget. The hardships of unemployment were recognized by the state. The state, as before, decidedthem at their own expense.
Compulsory social accident insurance appeared in 2000. It is now produced through the FSS and is the main tool for protecting the inhabitants of our country by the state.
The subjects of insurance are:
- insured: any person working in accordance with the labor regulations of the Russian Federation;
- insured: a company providing services to individuals;
- insurer: Russian funds.
Who can be insured?
There are several groups subject to the compulsory social insurance system, which include people who can lose physical he alth, finances, business and more.
- persons who work in municipal institutions and hold public office;
- members and heads of industrial cooperatives responsible for the development of the company;
- church employees;
- convicted but employed;
- specialists working under an employment contract.
Classification of the system by purpose
It is possible to systematize social insurance by purpose in the following form:
- temporary disability (illness);
- compulsory social accident insurance forproduction and occupational diseases;
- death of an insured citizen or a younger member of his family;
- medical support;
Organs of the system
Since it is global, the areas of responsibility within its framework are distributed among structures that help citizens in the event of various types of insurance situations.
The social security authorities are as follows:
Sickness benefits, compulsory social accident insurance, maternity.
Pension payments, support for people of special social categories, mother capital.
Treatment, therapy, provision of pharmaceuticals.
Each designated body is further divided into territorial branches for the convenience of working with insured citizens.
System Management Basics
There are three funds in Russia that manage the system at the municipal level. The Pension Fund (PF), the Social Insurance Fund (FSS) and the Compulsory Medical Insurance Fund (FOMS) are single centers in the social protection system, coordinating and controlling the activities of territorial bodies.
Of course, this system is centralized. Management for each fundformed from above and regulated by the President of the Russian Federation and the main legislative body of the country. This is reasonable, as it is part of the social policy of our state.
The system has a three-level character:
- General government funds.
- Territorial offices of central companies.
- Administrative funds.
The existence of these parts ensures the productive implementation of municipal tasks in the field of social protection of all residents of the state.
The controls at each level are similar, but the individuals responsible for the implementation of major social and political objectives are different.
Funding the system
Extra-budgetary institutions do not depend on the state budget and the success of top management in fulfilling tasks. The main goal of ensuring this monetary independence is to provide a guarantee and social justice in society, to ensure the redistribution of funds between different categories of people of working age.
Funds' funds are formed by: donations; economic appropriations; tax payments; employer payments.
Voluntary insurance is part of the social insurance system. However, the allocation of funds for its financing is always individual. Any person interested in preventing existing risks can be an insurer.
The role of the policyholder
The policyholder is the main subjectsocial insurance systems. Funds are formed to the greatest extent at the expense of his deductions and are state guarantors of observance of the rights approved by law. They are at different levels in the system. The policyholder at the regional level in the compulsory insurance system is usually an employer. He must make payments on time and in full. An insured of this kind must compile and present statistical data on the performance of his own obligations to the country and employees. However, the employer's insurance payments cannot in any way affect the income of employees. The only exception is the amount of income each month. The policyholder cannot collect compulsory insurance from the salary of an employee, but in this regard, he can adjust the amount of his salary.
Organization of the financial system
The funds' budgets are formed regardless of the country's annual balance. Funds of extra-budgetary companies are not subject to withdrawal. The funds are provided with the necessary finances according to the established tariffs. Almost everywhere they depend on the probability coefficient of the occurrence of the insured risk.
The collected funds are spent for the purposes set by the organization's annual budget.
The government guarantees the stability of the monetary system of compulsory social insurance. In case of a lack of funds, the budget of companies is supplemented by funds from the state budget.
In the system of voluntary insurance, such guarantees are simplyno.
Social Security System: Structure
The social insurance system in Russia includes: compulsory social insurance against cases of various kinds and voluntary insurance.
Compulsory state insurance is provided to three off-budget funds. The main forms of insurance work in this area are:
- insurance for temporary disability and maternity disability;
- compulsory social insurance at work;
The financial system of social insurance is part of the "money tree" of the country. Compulsory occupational social insurance is provided at the expense of funds accumulated in the budgets of all levels, as well as at the expense of trust funds.
Budget assistance exists only for those people who cannot protect their rights without the state.
The Social Insurance Fund is a municipal fund of extra-budgetary financing with funds that provide for compulsory insurance of Russian residents.
Main area of work:
- Measures of material support in case of temporary disability, as well as due to illness, pregnancy and maternity leave.
- The Fund provides the necessary finances for compulsory social insurance leave for occupational diseases, social burial, birth certificates, all the benefits that were provideda woman in connection with motherhood (one-time payments for early registration, for childbirth, monthly benefits for a baby).
- Allocation of funds for sanatorium and resort treatment to special preferential categories of people.
- Compulsory social insurance of accidents and illnesses that are associated with the implementation of official duties. One-time and ongoing payments are made, the costs of treatment and recovery are reimbursed, and measures to prevent occupational injuries.
- Providing prostheses and technical equipment needed for the rehabilitation of disabled people.
The organization of compulsory social insurance in case of disability and in connection with motherhood is a set of measures to provide citizens of the country with compensation in the event of an insurance situation.
PF RF is an off-budget municipal institution that manages the funds of the pension system, which controls the fulfillment of people's rights to receive pensions and pays them.
This institute of the compulsory insurance system, the first of the largest municipal bodies in Russia, is responsible for a significant share of GDP.
Field of his work:
- calculation, appointment and payment of pensions;
- registration and issuance of certificates for obtaining maternity capital;
- payment of maternity funds;
- work with insurers: those who pay insurance premiums to the Pension Fund of the Russian Federation (employers, individual entrepreneurs and others);
- assignment of additional assistance to those pensioners whose pensions are less than the subsistenceminimum.
The Mandatory Medical Insurance Fund is an off-budget municipal fund that provides medical insurance for Russians and a number of categories of foreign citizens who are in our country.
The value of the fund is expressed in its functions:
- control over the reasonable implementation of the funds of the CHI system;
- allocation of funds for CHI programs;
- providing support to territorial compulsory medical insurance funds.
MHIF has 88 local offices that are responsible for insurance claims in most regions.
How are premiums calculated?
The calculation of compulsory social insurance contributions as the main and permanent payment is made by the company's accounting department. It consists of a fixed part of the insurance rate and a variable share that the insured pays to the insurer.
The interest rate is fixed by the insurer and may vary from minimum to maximum depending on the state of the labor safety criterion.
When calculating insurance premiums for compulsory social insurance, the amount of deductions by insured citizens is taken as a base. Insurance rates are set and controlled by Russian regulations depending on the types of financial work.
SPs, licensed private practitioners pay the amount individually based on their income.
The amount of social support for residents of the Russian Federation directly depends on the state of companies, inwhich they work, from the attitude of the employer to the staff. The internal atmosphere and concern for the management of their subordinates in the form of providing insurance is a bright indicator for the company.
Social insurance is a guarantee of the security of a citizen in case of situations leading to unemployment.
The fundamental condition for the existence of the system is the constant deduction of payments by enterprises. Avoiding transferring funds to funds, even if it does not deprive the average citizen of the opportunity to use economic means in case of a difficult situation, but reduces the national budget, negatively affecting the economy. Failure to pay statutory contributions is a crime in the Russian Federation.