Insurance is a set of government assistance measures to protect people from incidents of various nature, because of 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 the provision of legal and monetary guarantees, when an ordinary person has experienced significant changes in life:
- he undermined his health, and therefore he needed treatment;
- acquired the status of a person with disabilities;
- a situation of reduction or unemployment;
- loss of the breadwinner of the family.
In such situations, the insured Russian has the right to compensation for damage caused by negative influences. When an insured event occurs, a certain amount of money is paid to the citizen.
The Federal Law "On Compulsory Social Insurance" establishes in the Russian Federation the legal and economic foundations of this system on a mandatory basis. It defines the general rules for the functioning of the formed funds.
Concept
The social insurance system in Russia is a set of norms, guarantees and institutions whose activities are aimed at ensuring mandatory protection of poor 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 between different layers of the working population.
The structure includes compulsory social insurance and voluntary insurance.
A number of extrabudgetary companies are working in this direction, implementing municipal policies in the social sphere. 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 a mandatory element of the insurance industry.
The existing system can also be considered as part of state policy regarding insurance of entities and their specific protection against existing social and financial risks.
System History
Social insurance was first introduced in Russia in 1912. It included only sick leave and accident insurance, which concerned only employees of manufacturing companies.
In the USSR, the government was responsible for this aspect of work. Since 1933, work in this direction has been carried out by trade unions and a specially formed fund.
This time was the starting point for the formation of the first stock organization in this area. It has become a unique extrabudgetary institution. Before the collapse of the union in 1990, all social transfers were made through the fund.
During the 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, PFR and FSS were created.
At that time, the health care system was in a sad state, and the unemployment rate was immensely high. This was the main prerequisite for the adoption in 1991 of laws that relate to the employment of the country's population and medical insurance. However, their implementation began only in 1992.
As a result, the Employment Fund and the MHIF (with national and territorial divisions) were formed.
Since the early 2000s, the Employment Fund has been abolished. A prerequisite for this was the inefficiency of solving the tasks that the state set for it. 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 had the right to receive were made from the national budget. The difficulties of unemployment were recognized as state. The state, as before, decided them at its own expense.
Compulsory social accident insurance appeared in 2000. It is now being produced through the FSS and is the main instrument of protection of the inhabitants of our country by the state.
Subjects
The subjects of insurance are:
- insured: any person working in accordance with labor regulatory acts of the Russian Federation;
- policyholder: this is a company providing services to individuals;
- insurer: funds of Russia.
Who can be insured?
There are several groups subject to the compulsory social insurance system, which include people who can lose physical health, finances, business, and more.
They include:
- persons who work in municipal institutions and hold public office;
- participants and heads of industrial cooperatives responsible for the development of the company;
- Church employees
- convicted, but busy;
- stateless persons;
- IP;
- specialists working under an employment contract.
Classification of the system by purpose
You can organize social insurance for the intended purpose in the following form:
- motherhood;
- temporary disability (disease);
- compulsory social insurance for industrial accidents and occupational diseases;
- death of the insured citizen or younger member of his family;
- medical support;
- pension.
System organs
Since it is global, the areas of responsibility within it are distributed among structures that help citizens in the event of insurance situations of various types.
The bodies of the social insurance system are as follows:
Organ | Characteristic |
FSS | Sickness benefits, compulsory social insurance against accidents, motherhood. |
FIU | Pension payments, support for people of special social categories, capital. |
MHIF | 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
In Russia, there are three funds that manage the system at the municipal level. The Pension Fund (PF), the Social Insurance Fund (FSS) and the Compulsory Medical Insurance Fund (MHIF) are the unified centers in the social security system that coordinate and control the activities of territorial bodies.
Of course, this system is centralized. Management for each fund is formed 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 nature:
- National funds.
- Territorial offices of central companies.
- Administrative funds.
The existence of these parts ensures the effective 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 people who are responsible for the implementation of the main social and political tasks are different.
System financing
Extra-budgetary institutions do not depend on the state budget and the successes of senior management in fulfilling tasks. The main goal of ensuring this monetary independence is to give a guarantee and social justice in society, to ensure the redistribution of funds between different categories of residents of working age.
Funds funds are formed by the method of: donations; economic appropriations; tax payments; employer payments.
Voluntary insurance is included in the social insurance system. However, the allocation of funds for its financing is always individual. An insurer can be any person interested in the prevention of existing risks.
The role of the policyholder
The policyholder is the main subject of the social insurance system. Funds to the greatest extent are formed due to its deductions and are state guarantors of compliance with statutory rights. In the system they are at various levels. The policyholder at the regional level in the compulsory insurance system is usually the employer. He must pay payments on time and in full. An insurer of this kind should compile and submit statistics on the performance of their own obligations to the country and employees. However, the employer's insurance payments cannot in any way affect employee income. The one exception is the amount of income every month. The policyholder cannot charge compulsory insurance for the employee’s earnings, but in this regard, he can adjust the size of his salary.
Organization of the financial system
The budgets of funds are formed regardless of the annual balance of the country. Extrabudgetary funds are not subject to withdrawal. Funds are provided with the necessary finances in accordance with the established tariffs. Almost everywhere, they depend on the probability coefficient of the occurrence of the insured risk.
The collected funds are spent for those purposes that are established by the annual budget of the organization.
The government guarantees the stability of the monetary system of compulsory social insurance. In the event of a lack of funds, the company’s budget is supplemented by funds from the state budget.
There are simply no such guarantees in the voluntary insurance system.
Social Insurance System: Structure
The social insurance system in Russia includes: compulsory social insurance against cases of various kinds and voluntary insurance.
Mandatory state insurance is made in three extra-budgetary funds. The main forms of insurance work in this area are:
- temporary disability and disability insurance in connection with maternity;
- compulsory social insurance at work;
- Compulsory medical insurance;
- OPS.
The social insurance financial system is part of the country's “money tree”. Compulsory professional social insurance is carried out at the expense of funds accumulated in 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 a state.
FSS
The Social Insurance Fund is a municipal fund for extrabudgetary financing with funds that provide for compulsory insurance of Russian residents.
Main area of work:
- Material support measures in case of temporary incapacity for work, as well as due to illness, pregnancy and maternity leave.
- The fund provides the necessary finances leave for compulsory social insurance of occupational diseases, social burial, birth certificates, all the benefits that were provided to the woman in connection with motherhood (one-time payments for early registration, childbirth, monthly benefits for the baby).
- Allocation of funds for spa treatment for special privileged categories of people.
- Compulsory social insurance for accidents and illnesses associated with the implementation of official duties. One-time and constant payments are made, the costs of treatment and rehabilitation, measures to prevent occupational injuries are reimbursed.
- Provision of prostheses and technical equipment necessary for the rehabilitation of persons with disabilities.
Compulsory social insurance in the event 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.
FIU
The PF of the Russian Federation is an extrabudgetary municipal institution that manages the funds of the pension system, which controls the fulfillment of the rights of people to receive pensions and makes their payment.
This institute of the compulsory insurance system, the first of the largest municipal authorities in Russia, is responsible for a substantial share of GDP.
Field of work:
- calculation, assignment and payment of pensions;
- registration and issuance of certificates for obtaining capital;
- payment of maternal funds;
- work with insurers: those who pay insurance payments to the PF of the Russian Federation (employers, individual entrepreneurs and others);
- assignment of additional assistance to those pensioners whose pensions are less than the subsistence level.
MHIF
The Compulsory Health Insurance Fund is an extrabudgetary municipal fund that provides health insurance for Russians and a number of categories of foreign citizens who are located in our country.
The value of the fund is expressed in its functions:
- monitoring the sound implementation of the mandatory health insurance system;
- allocation of funds for mandatory medical insurance programs;
- supporting territorial compulsory health insurance funds.
The MHIF has 88 local branches that are responsible for insurance claims in most regions.
How are insurance premiums calculated?
Calculation of contributions of compulsory social insurance as the main and permanent payment is made by the accounting department of the company. It consists of a fixed part of the insurance rate and a variable share that the policyholder pays to the insurer.
The interest rate is fixed by the insurer and can vary from minimum to maximum depending on the state of the labor protection 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 the regulatory legal acts of Russia, depending on the types of financial work.
Individual entrepreneurs, individuals who engage in private practice on the basis of a license, pay the amount individually, depending on the amount of income.
The amount of social support to residents of the Russian Federation directly depends on the state of the companies in which they work, on the attitude of the employer to the staff. The internal atmosphere and concern for managing their subordinates in the form of insurance is a vivid indicator for the company.
Conclusion
Social insurance is a guarantee of citizen safety in the event of situations leading to unemployment.
The fundamental condition for the existence of the system is the constant deduction of payments by enterprises. Avoiding the transfer of funds to funds, even if it does not deprive the average citizen of the opportunity to use economic funds 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.