Voluntary social insurance: features and benefits

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Voluntary social insurance: features and benefits

Voluntary social insurance in contrast to compulsory, is a type of activity that is carried out by non-state institutions. It is difficult to overestimate the benefits of it, especially considering that the usual system often does not meet the increased demands of citizens.

The main task of voluntary social insurance is to provide people with additional social protection. And in the current difficult time, such an “airbag” for the vast majority of citizens of our country is unlikely to be superfluous.

Basic principles of voluntary social insurance

This type of insurance is based on the free decision of the insured (individual or organization) and the insurer to conclude a contract.

Distinctive features of additional insurance are the democracy of fund management, the implementation of the principle of self-government, social partnership between employers and employees.

The provisions of the current legislation are taken as the basis for the contract of voluntary social insurance. Specific conditions and subtleties of the contract are developed by the insurer.

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The choice of this type of insurance does not cancel the mandatory insurance premiums, that is, compulsory and voluntary insurance do not mutually exclude each other, but complement each other.

Voluntary social insurance is carried out at the expense of:

  • insurance premiums;
  • own income of citizens;
  • employers who insure employees from the company’s income.

Consider the main features of voluntary social insurance:

  • the presence of legal grounds, the desire of the insured;
  • making one-time or periodic contributions;
  • the presence in the contract of restrictions on the term of insurance;
  • voluntary choice of the type of insurance policy;
  • the amount of payment for an insured event is established by agreement of the parties and is prescribed in the contract.

Voluntary social insurance is based on the principles of solidarity and mutual assistance. This type of insurance is common in traumatic and hazardous industries. A person who has made all payments in a timely manner can count on receiving a payment upon the occurrence of an insured event.

The difference between compulsory and voluntary social insurance

With compulsory insurance, tariffs and rates are prescribed in legislative acts, and with voluntary insurance, they are assigned and indicated in the contract.

With compulsory insurance, the guarantor of the performance of the contract is the state. If voluntary – an agreement with the insurer.

Insurers pay premiums to companies, which are accumulated in special funds. With voluntary social insurance, the funds are in non-governmental organizations and various mutual insurance societies.

Funds from compulsory insurance go to the Social Insurance Fund and the Pension Fund of the Russian Federation. This is enshrined in law. Contributions are under the control of the tax authorities.

Contributions to voluntary social insurance funds are formed from the personal funds of citizens and the income of organizations, so government agencies do not require them to report on the distribution of funds.

With voluntary insurance, a person himself determines what risk and for what amount he is going to insure.

Voluntary insurance is always limited in terms. The continuity of this type of insurance is ensured only by renegotiating the contract.

Types of voluntary social insurance

Often, voluntary insurance contracts are included in the social package of managers and employees of various enterprises in conditions of hazardous production. Insurance is issued for employees who ensure the continuity of production, as well as for trainees and trainees who do not have sufficient work experience.

Main types of voluntary insurance:

  • Movable and immovable property owned by a person, material assets, securities.
  • Vehicle. Risks are insured with full or partial payment.
  • Animals – exotic, domestic, agricultural, including thoroughbred horses.
  • Mortgages.
  • Medical – covers the costs of outpatient / inpatient treatment, rehabilitation measures in the postoperative period, dental services, pregnancy management for women.
  • Personal liability of the insured to third parties.
  • Personal voluntary social insurance. It includes property interests relating to human life, harm to his health, disability after accidents at work.

Insurance premiums for voluntary social insurance can be paid in different ways – once a year or once in a certain period (quarter, half a year).

The amount of payments depends on various factors – the insurance contract, the income of the insured, etc.

profitability and efficiency of their business. The guarantee of the fulfillment of obligations to state bodies and creditors is the property of the individual entrepreneur. If they fail to fulfill their obligations, they are financially liable.

Individual entrepreneurs have the right to insure production activities, property, income received, as well as conclude a contract for personal insurance.

Voluntary social insurance for individual entrepreneurs has a number of advantages, among which there is the possibility of receiving at the expense of the FSS:

  • temporary disability benefits;
  • benefits for pregnancy and childbirth;
  • a one-time allowance for women registered with medical institutions in the early stages of pregnancy;
  • a one-time allowance for the birth of a child;
  • monthly allowance for child care until he reaches the age of 1.5 years;
  • social benefit for burial.

And there is also an opportunity for individual entrepreneurs to take out insurance against the risks that accompany their business activities.

Registration of an individual entrepreneur in the Social Insurance Fund

Registration of voluntary social insurance consists in submitting the following documents to the FSS department: an application, a copy of an identity document, a passport of an individual entrepreneur, a certificate of registration with a tax authority (TIN), a certificate of state registration of an individual as an individual entrepreneur (OGRN), extracts from the Unified State Register of Individual Entrepreneurs (EGRIP). Documents are submitted in person, by mail, at the MFC and through the State Services portal.

When filling out the application, the following information is indicated:

  • The date the application was completed.
  • Name of the territorial body of the FSS.
  • Full name, place of residence and contact phone number of the applicant.
  • Passport data.
  • Information about the state registration of individual entrepreneurs in the tax authorities.
  • Primary occupation.
  • Address of the place of business.
  • Information about issued licenses (if any).
  • Number and date of conclusion of the employment contract.
  • Account number in a credit institution.
  • Date of receipt of payroll.

After three working days after receiving the FSS of the documents indicated in the list, the applied citizen is registered with the assignment of a number and code of subordination to him. A notice is generated, one copy of which is handed in by the method specified in the application – in person or by mail.

Individual entrepreneurs who have voluntarily registered with the FSS are entitled to insurance support with the timely payment of contributions for the year that preceded the year of the insured event.

You can pay contributions at a time or in part – by months, quarters and semesters. But this must be done before the end of the year in which the application was submitted. Payment is made to the account of the FSS branch in cash or by bank transfer.

The amount of annual insurance premiums is calculated in this way: the minimum wage (established at the beginning of the year) is multiplied by the rate of insurance premiums (2.9%), the result is increased by 12 times.

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