Insurance fund - what is it? Insurance Fund of the Russian Federation

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Insurance is an important part of people's lives. Now it is used in relation to different areas: loans, life, he alth, real estate, transport. Each type of service has its own characteristics, but they are united by the fact that the insured person receives compensation upon the occurrence of a specific case. All this is fixed in the contract.

The insurance fund is the society's cash reserves needed to compensate for damage from natural disasters and emergencies. To date, there are 3 forms of its organization:

• government;
• self-insurance fund;
• a fund set up by an organization.

Each compensation system has its own characteristics. Certain groups of citizens can participate in them.

State fund and self-insurance

Thanks to national resources, a state insurance fund is being created. The organization can work in kind and in cash.

The fund is designed to compensate for damage from accidents that have occurred,natural Disasters. Cash is paid to people to eliminate the consequences of an unpleasant event.

The self-insurance fund was created thanks to the in-kind and cash reserves of the subjects. Its main task is to ensure the normal activity of the subject and its financial stability in a negative economic environment.

Organization Fund

Each organization can create its own insurance fund. This will allow reimbursement and sums insured to be paid based on terms and conditions. The formation of the system takes place in the form of money. Each participant is obliged to pay contributions.

Inside the fund, the loss of one of the participants is redistributed among the rest. To determine the required amount of the fund, the organization uses the methods of actual calculations.

In any case, insurance helps to cover the cost of damage. The insurance fund consists of contributions that must fully cover possible losses. Participants pay an amount corresponding to the level of danger and the price of the property.

Contributions cover administrative expenses intended for management. They create a reserve that covers losses in adverse periods. The company must have a specific profitability.

Objectives of the Funds

Such organizations perform quite significant functions, as they are useful to citizens. The tasks of institutions include:

• collect contributions;
• monitoring the use of funds;
• fundinginsurance payments;
• perform other functions approved by law.

Categories

An insurance fund is an organization that pays money to a person who has entered into an agreement with it. If the institution is non-state, then the contributions are paid voluntarily, the amounts are established by agreement of the parties. Customers have the opportunity to choose service packages and pay for them.

Russian insurance fund of the state type involves the mandatory payment of contributions. In the law, you can find information about the amounts that are repaid by certain categories of citizens. There are special deadlines for this. The law may indicate additional conditions as well as benefits. The funds of insurance companies are usually commercial, since each organization develops due to the investments of clients in enterprise assets and securities.

How are foundations different from public systems?

Compared to state structures, foundations have a simple organization and a low level of bureaucracy; amounts are paid more than those provided in public institutions, and according to established rules.

The contract specifies the risks that are recognized as insurance. If some conditions are not met, then payments should not be expected.

Structure of public funds

The insurance fund of the Russian Federation has many divisions that differ in rules. Each organization operates according to its provisions. Russia has pension, social and medical insurance. The work of each institution is regulatedlegislation. The Social Insurance Fund provides support to those who find themselves in a difficult life situation. These include losing a job, needing treatment.

Today there are voluntary insurance programs. If a citizen makes additional contributions, then he is guaranteed benefits or high payments. Voluntary services are also indicated in the legislation.

The state usually provides those services that are unlikely to receive from private structures. For example, social and medical. And private companies need profit. State structures are more reliable, since the money paid is small, but guaranteed.

Types of funds

There is such a thing as "off-budget insurance fund". It does not include funds from the federal budget and the subjects of the country. There are 3 types of insurance in Russia:

• medical;
• social;
• pension.

The work of funds is controlled by federal laws, regulations and the Budget Code of the Russian Federation. Assets come from contributions.

He alth insurance

The country has compulsory medical insurance, which is part of the state administration. A medical insurance fund is an organization that pays citizens in case of he alth problems. Activities are regulated by the constitution, legislative documents, ordinances.

The Compulsory Medical Insurance Fund is a legal entity, has separate property, conductsself balance. The organization has open accounts with the Central Bank. The main activity of the fund is the accumulation of money intended for medical care of employed and unemployed citizens. The fund finances the work of medical organizations.

Social Security

The Social Insurance Fund carries out the state policy in the field of ensuring the normal life of citizens. The funds are the property of the state and cannot be withdrawn. The main activity is the social protection of people, regardless of their material we alth:

• pregnancy, disability benefits;
• payments with the birth of a child and until the baby reaches one and a half years;
• burial allowance;
• compensation for treatment in a sanatorium.

The legislation establishes the payment of contributions from employers at approved rates. The rules of payment across the country are the same. Regional branches exist in each area. The activities of companies provide assistance to citizens in case of insurance events.

Pension insurance

The fund was created to manage finances in the pension sector. The funds are state property, cannot be withdrawn and are not included in the budget.

The pension fund is created thanks to:

• contributions from the working population;
• appropriations from the federal budget;
• reimbursement;
• fines;
• voluntary contributions.

Funds are used to pay pensions, material assistance to the disabled and the elderlycitizens. They also provide child support and other welfare benefits.

Features of Mutual Insurance

Mutual insurance is a non-commercial form of organization of the fund, with the help of which the property interests of citizens are protected. From a legal point of view, each participant has two statuses: the insurer and the insured. This right is secured by a policy.

The participants of the fund include policyholders, and the reserve is formed thanks to contributions. Funds are used to compensate for losses based on established rules.

The mutuality of the fund means that the insurance participants themselves cover the losses. In full form, this is ensured when the insurers themselves become consumers. Then the insurer is interested in mutual assistance.

If the fund is commercial, then the entrepreneur is considered to be the intermediary of insurance. In this industry, an important goal is to make a profit, and this is achieved through tariffs, price increases, investment work.

An important principle of mutual insurance is non-profit, as it is non-commercial activity. When losses exceed income, additional contributions are made. Therefore, such organizations operate on the principle of joint and several liability.

Pension contributions are paid by employers in favor of their employees. As a result, old-age benefits are formed. Payers can be citizens paying remuneration to individuals, organizations,entrepreneurs. When the payer belongs to different categories, he pays all contributions separately.