Social insurance: varieties, conditions, insurance funds

In any developed country, social insurance is part of social policy. It allows you to create the financial reserve necessary for each person. In cases of disability, old age, motherhood, such a reserve comes into play. Off-budget insurance funds are responsible for the accumulation and use of funds intended for social insurance purposes. Their income consists of contributions from individuals and legal entities, and their expenses are strictly targeted.

social insurance

What it is

Official social insurance has a history of over 100 years. The very idea of ​​financial support in case of illness or injury appeared at the beginning of the 18th century, when workers from their own funds created general reserves – the prototypes of modern funds.

And legislative reinforcement followed at the end of the 18th century in Germany, thanks to the iron hand of Otto von Bismarck.

Of course, individual manifestations of social insurance can be discerned much earlier: in tsarist times, in reforms complementary to the abolition of serfdom, and even in Kievan Rus.

But it acquired full-fledged legislative content and state consolidation only at the end of the 20th century.

Social insurance in the broadest sense is part of the country’s political course. The consolidation of a number of legal provisions in the main law of the state required real guarantees of their implementation. One of these guarantees is social insurance.

Social insurance should be understood as a system of social relations that develop in connection with the formation, accumulation and distribution of funds from special funds created by individuals, legal entities and the state.

It can be thought of as a defense mechanism. When a certain social risk manifests itself, insurance acts as a shield that protects a person from threatening material distress.

What risks are we talking about? This can be illness, old age, work injury, loss of a breadwinner, etc. Such situations significantly complicate a person’s life, and at the same time are massive. And any unfavorable social phenomenon that damages an unlimited number of people must be regulated at the state level.


The branch of insurance law can be classified as private-public. Therefore, the first classification implies the division of social insurance into compulsory and voluntary.

Obligatory comes from the state, is regulated by laws and aims to create the necessary financial minimum for any member of the state. Voluntary is considered as a supplement for those wishing to strengthen their financial position, just in case. It can be carried out at the collective (corporate) or individual level.

Voluntary social insurance can provide great guarantees, provide for such cases that cannot be called risky, but related to the needs of a person. For example, a specific organization can form a corporate reserve fund, the funds of which are deducted to pay for employees’ sanatorium holidays.

Of course, the main meaning is assigned to the mandatory type, which, depending on the underlying risk, can be classified into:

  • medical;
  • pension;
  • state;
  • unemployment;
  • from industrial accidents;
  • for disability.

About the law

The primary law in the field of social insurance is the Federal Law “On the Basics of Compulsory Social Insurance”.

Who falls under the law:

  • legal entity and individual entrepreneur;
  • working persons;
  • persons who have reached retirement age;
  • temporarily disabled;
  • disabled people;
  • pregnant women;
  • women with children under 1.5 years old;
  • persons who have lost their breadwinner;
  • non-working persons (in established cases).

The law establishes the rights and obligations of the subjects, determines the managing and supervisory authority, the procedure for resolving disputes. A separate chapter deals with the budget insurance funds, which function on the basis of the principle of autonomy, which will be discussed in more detail below.

It should be noted that it was with the help of this law that social insurance was finally developed and put on rails as an element of state social protection.

funds, insurance

Insurance funds

The Federal MHI Fund operates on the basis of the Budget Code and the Federal Law “On MHI in Russia”. It also has its own charter, securing some organizational points.

The Federal Compulsory Medical Insurance Fund is a non-profit monetary institution.

Its budget consists of the following receipts:

  1. Contributions;
  2. Monetary penalties;
  3. Federal budget funds;
  4. Dividends from the investment of unoccupied funds;
  5. Other not prohibited receipts.

The employer’s contribution is calculated from the employee’s taxable income and amounts to 5.1%.

Funds from the FFOMS budget go for the following purposes:

  • fulfillment of the country’s obligations to members of society (not necessarily those who have Russian citizenship) on health protection;
  • distribution and transfer of funds to territorial funds;
  • management functions.

The reserve of MHI insurance funds is intended for the implementation of basic and territorial medical insurance programs. The programs are aimed at ensuring that any policy holder can receive free medical care.

In the CHI scheme, funds are assigned the role of the main money distributor. Policyholders make established payments to the Federal Fund and territorial funds. Accordingly, employers pay for their employees, and local administrations pay for unemployed citizens. Funds summarize the funds received and distribute them between insurance medical organizations. And already insurance companies conclude contracts with medical organizations, and pay for medical care.

Funding standards from a specific territorial fund, usually, exceed federal ones, so the subject’s program can offer a more significant list of types of medical care.

Many years have passed since the founding of FFOMS. Despite the frequent criticism of domestic medicine, it must be admitted that it satisfies the minimum needs of the population. At least, you can always count on a free examination, for example, an ultrasound scan, a consultation with a therapist, as well as some narrow specialists, tests, etc.

How the funds of the Social Insurance Fund of Russia are accumulated and spent is determined by the Budget Code, the Federal Law “On the Basics of Compulsory Social Insurance” and the Resolution “On the FSS of Russia”.

The fund is a financial and credit institution of a special type. His funds consist of:

  • contributions from employers and individual entrepreneurs;
  • dividends from the placement of unoccupied funds;
  • voluntary contributions from individuals and legal entities;
  • transfers from the federal budget;
  • monetary penalties (fines, etc.);
  • other permitted receipts.

The employer’s contribution is calculated from the employee’s taxable income and amounts to 2.9%.

The money from the fund is used for the following purposes:

  1. Payment of benefits for partial disability (sick leave), pregnancy, childbirth;
  2. Monetary support for pregnant women who register early, at birth and after until the child reaches 1.5 years of age;
  3. Payment of security due to an accident or an acquired disease;
  4. Issuance of social benefits for burial;
  5. Payment for vouchers to the sanatorium;
  6. Purchase of special equipment for disabled people;
  7. Carrying out preventive measures;
  8. Other established goals.

Pension Fund

The Pension Fund of Russia operates on the basis of a number of laws: the Federal Law “On the Basics of Compulsory Social Insurance”, the Federal Law “On Compulsory Pension Insurance in the Russian Federation” and others.

The Pension Fund of Russia is the country’s main pension insurer. Its budget is significantly higher than that of other insurance funds, and is consolidated (includes budgets of all levels).

Due to what is the formation of the budget of the Pension Fund of Russia:

  • insurance premiums;
  • budget money;
  • all kinds of monetary penalties (penalties, fines, etc.);
  • voluntary contributions from individuals and legal entities;
  • profit from investing free funds of the GPO;
  • reserve money for funded pension;
  • savings of persons entitled to a fixed-term pension;
  • other sources.

The employer’s contribution is calculated from the employee’s taxable income and amounts to 22%.

Money from the PFR budget is spent on:

  1. Issuance of pension provision;
  2. Delivery of pensions;
  3. Payment of contributions forming the pension savings fund;
  4. Transfer of money to a non-state fund, if a person has decided to create voluntary savings;
  5. Maternity capital programs;
  6. Social payments;
  7. Other purposes.

It is interesting that payments of this kind, such as for the care of disabled or disabled children, are issued by the Pension Fund. According to statistics for 2017, for example, about 487 billion rubles were allocated only for social benefits.

what are the funds

Funds income and expenses

Social insurance funds are collectively called “off-budget” for a reason, because they are formed in addition to the budget, at the expense of deductions from individuals and legal entities.

Foundations are created solely to support the population and cannot profit from their activities. It is no coincidence that even the profit from the placement of unoccupied funds in permitted assets is again used for good purposes.

The draft budgets are developed by the management bodies of the funds themselves, but then approval is required. At the end, the Accounts Chamber conducts project examinations.

The key feature of the budgets of social insurance funds is that they are not included in the system of budgets of all levels and cannot be used for purposes other than social. This principle is called the autonomy (independence) of the financial system of off-budget funds.

The funds’ income consists mainly of contributions, as well as investment income, penalties and other sources not prohibited.

State insurance

State insurance is the only type of social insurance carried out at the expense of the budget, not funds.

On the basis of Article 969 of the Civil Code of the Russian Federation, the state provides life, health and property insurance for certain categories of civil servants and other persons whose professional duties involve risks for themselves or for 3 persons. It applies to military personnel, employees of internal affairs bodies, employees of prisons and colonies, judges, arbitration assessors, etc.

In this case, the insured is the state represented by the ministry or executive authority. In fact, the insured person does not even participate in this relationship.

This type of insurance emphasizes the special importance of protecting and protecting the interests of people who risk their health and life for the benefit of society.


Social insurance is one of the manifestations of the state social protection of the population.

With its help, the consequences of manifested social risks, such as illness, loss of the ability to work, an accident during work, and the like, are leveled. Social insurance supports pensioners, pregnant women, mothers, disabled people.