- any of various forms of insurance in which a government is an insurer, esp. such insurance that provides assistance to disabled or unemployed workers and to aged persons.[1915-20]
* * *Compulsory public-insurance program that protects against various economic risks (e.g., loss of income due to sickness, old age, or unemployment).Social insurance is considered one type of social security, though the two terms are sometimes used interchangeably. The first compulsory national social-insurance programs were established in Germany under Otto von Bismarck: health insurance in 1883, workers' compensation in 1884, and old-age and disability pensions in 1889. Austria and Hungary soon followed Germany's example. After 1920, social insurance was rapidly adopted throughout Europe and the Western Hemisphere. The U.S. lagged behind until the passage of the Social Security Act in 1935. Social Security in the U.S. now provides retirement benefits, health care for persons over a specific minimum age, and disability insurance. Social-insurance contributions are normally compulsory and may be made by the insured person's employer and the state as well as by the individual. Social insurance is usually self-financing, with contributions being placed in specific funds for that purpose. See also unemployment insurance; welfare.
* * *public insurance program that provides protection against various economic risks (e.g., loss of income due to sickness, old age, or unemployment) and in which participation is compulsory. Social insurance is considered to be a type of social security (q.v.), and in fact the two terms are sometimes used interchangeably.The first compulsory social insurance programs on a national scale were established in Germany under Chancellor Otto von Bismarck: (Bismarck, Otto von) health insurance in 1883, workmen's compensation in 1884, and old-age and invalidity pensions in 1889. Germany's example was soon followed by Austria and Hungary. The issue of social insurance elsewhere in Europe was dominated by a debate between those who preferred voluntary, subsidized insurance and those who advocated a compulsory system. Great Britain (United Kingdom) adopted national compulsory health insurance in 1911 and greatly expanded it in 1948. After 1920, social insurance on a compulsory basis was rapidly adopted throughout Europe and in the Western Hemisphere. The United States lagged behind Europe; until 1935, with the passage of the Social Security Act, government insurance programs were exclusively the responsibility of state or local governments. The three federal insurance programs adopted in the United States since 1935 provide retirement and survivor benefits, health care for persons over 65, and insurance against disability.Social insurance programs differ from private insurance in several ways. Contributions are normally compulsory and may be made by the insured's employer and the state, as well as by the insured himself. Also, benefits are not as strictly tied to contributions as in private insurance. For example, to make the programs serve certain social purposes, some groups are included among beneficiaries even though they have not contributed for the required periods of time. Benefits may be raised in response to increases in the cost of living, again weakening the link between contributions and benefits.Social insurance, however, differs significantly from other forms of public aid. Social insurance systems tend to be self-financing, with contributions placed in specific funds for that purpose. Because the payment of benefits is based generally on contributions made and not on need, the necessity for a means test is removed. Benefits become a right, and any stigma attached to receiving public funds is reduced. In certain countries, social insurance programs resemble private insurance in that the required contribution levels reflect varying degrees of risk. For example, contributions to unemployment insurance programs for employers with low discharge and layoff rates may be less than for those with higher rates.There are considerable variations among countries in the financing of social insurance programs. Australia, Sweden, and Denmark are among those in which the state bears a high proportion of the costs. The distribution of costs also varies within each country according to the particular program in question. For instance, it is common for employers to bear the full cost of workmen's injury insurance. See also social welfare program.
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Social insurance — is any government sponsored program with the following four characteristics: * the benefits, eligibility requirements and other aspects of the program are defined by statute; * explicit provision is made to account for the income and expenses… … Wikipedia
social insurance — ➔ insurance * * * social insurance UK US noun [U] ► GOVERNMENT, ECONOMICS money that employers and employees pay to the government so that people receive money when they are not able to work because of age, illness, etc.: »In most countries,… … Financial and business terms
social insurance — n: insurance of the individual against certain hazards (as unemployment, old age, and disability) that is undertaken, facilitated, or enforced by government as a social policy Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
social insurance — n. any insurance program undertaken by a government to provide income or payments to persons who are unemployed, disabled, elderly, etc … English World dictionary
social insurance — noun Social insurance is used before these nouns: ↑system … Collocations dictionary
social insurance — social security, government fund for social welfare … English contemporary dictionary
social insurance — noun government provision for unemployed, injured, or aged people; financed by contributions from employers and employees as well as by government revenue • Hypernyms: ↑social welfare, ↑welfare, ↑public assistance • Hyponyms: ↑national insurance … Useful english dictionary
social insurance — so′cial insur′ance n. gov any of various forms of insurance provided by a government, as unemployment insurance • Etymology: 1915–20 … From formal English to slang
social insurance — See insurance … Black's law dictionary
social insurance — Those forms of insurance intended primarily to enable an old or disabled person to live without resort to a public welfare agency … Ballentine's law dictionary