Insurance is an important part of people's lives. Now it is used in relatively different areas: loans, life, health, 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.
An insurance fund is the company's cash reserves necessary to compensate for damage from natural disasters and emergency situations. Today there are 3 forms of its organization:
- state;
- self-insurance fund;
- fund created by the organization.
Each system of compensation for harm has its own characteristics. Certain groups of citizens may 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 intended to compensate for damage caused by accidents and natural disasters. Cash is paid to people to eliminate the consequences of an unpleasant event.
The self-insurance fund was created thanks to the natural and monetary reserves of the entities. Its main task is to ensure the normal activity of the subject and its financial stability in a negative economic environment.
Foundation Fund
Each organization can create its own insurance fund. This will allow you to pay reimbursement and insurance amounts based on the terms and conditions. The formation of the system takes place in cash. Each participant agrees to pay dues.
The fund redistributes the loss of one of the participants among the others. To establish the desired size of the fund, the organization uses the methods of actual calculations.
In any case, insurance helps cover the cost of damage. The insurance fund consists of contributions that should fully cover potential losses. The participants pay the amount corresponding to the level of danger and the price of the property.
Contributions cover administrative expenses for management. They create a reserve, which covers losses in adverse periods. The company must have a specific profitability.
Fund Objectives
Such organizations perform quite significant functions, since they are useful to citizens. The tasks of the institutions include:
- collection of contributions;
- control over the use of funds;
- financing insurance payments;
- the performance of 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-governmental, then 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.
State type Russian insurance fund involves mandatory payment of contributions. In the law you can find information about the amounts that repay 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 is developing thanks to the investments of customers in the assets of enterprises and securities.
What is the difference between funds and state systems?
Compared to state structures, funds have a simple organization and a low level of bureaucracy; the amounts are paid more than those provided in state institutions, and according to the established rules.
The contract spells out risks that are recognized as insurance. If some conditions are not met, then payments should not be expected.
The structure of public funds
The RF Insurance Fund has many divisions that differ in rules. Each organization acts in accordance with its provisions. In Russia there is pension, social, medical insurance. The work of each institution is regulated by law. The Social Insurance Fund provides support to those who find themselves in a difficult life situation. These include job loss, the need for treatment.
Today, voluntary insurance programs are in place. If a citizen makes additional contributions, then he is guaranteed benefits or high payments. Voluntary services are also specified in law.
The state usually provides those services that it is unlikely to receive from private entities. For example, social and medical. And private companies need a profit. Government agencies are more reliable because the money paid is small, but guaranteed.
Types of funds
There is such a thing as an "extrabudgetary insurance fund." It does not include funds from the federal budget and subjects of the country. There are 3 types of insurance in Russia:
- medical;
- social;
- retirement.
The work of the funds is controlled by federal laws, regulatory documents and the Budget Code of the Russian Federation. Assets are formed through contributions.
Health insurance
The country has compulsory medical insurance, which is part of public administration. A medical insurance fund is an organization that provides payments to citizens with health problems. Activities are regulated by the constitution, legislative documents, decrees.
The MHI Fund is a legal entity, has separate property, and maintains an independent balance sheet. The organization has open accounts with the Central Bank. The main activity of the fund is the accumulation of money intended for the medical care of employed and unemployed citizens. With the help of the fund, the work of medical organizations is financed.
Social insurance
The Social Insurance Fund implements state policy in the field of ensuring a normal life for 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 wealth:
- maternity allowances;
- payments with the birth of a child and before 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 payment rules for the country are uniform. Regional branches exist in each region. The activities of companies provide assistance to citizens in insurance events.
Retirement insurance
The fund was created to manage pension finance. The funds are state property, cannot be withdrawn and are not included in the budget.
A pension fund is created by:
- contributions from the working population;
- bank notes from the federal budget;
- refunds;
- fines;
- voluntary contributions.
The funds are used to pay pensions and material assistance to disabled and elderly citizens. They also allow you to pay child benefits and provide other areas of well-being.
Mutual Insurance Features
Mutual insurance is a non-profit form of fund organization, 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 policyholder. This right is secured by a policy.
The participants of the fund include policyholders, and the reserve is formed through contributions. The funds are used to compensate for losses based on established rules.
Reciprocity of the fund means that losses are covered by the insurance participants themselves . 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 an insurance intermediary . In this industry, an important goal is to make a profit, and this is achieved thanks to tariffs, price increases, investment work.
An important principle of mutual insurance is non-profitability, since it is actively non-profit. When losses exceed revenues, additional contributions are made. Therefore, such organizations work on the principle of joint responsibility.
Pension contributions are paid by employers in favor of their employees. Thanks to this, 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.