Social insurance in Ninh Binh province today

socio-economic, financial, income, salary, etc. At the same time, depending on each regime, when building, biological factors must also be taken into account; average life expectancy of the country, nutritional needs; mortality probability, etc.

However, the basis for determining the conditions for receiving social insurance benefits must take into account a series of factors related to the entire system of regimes as well as each specific social insurance regime. For example, when determining the conditions for receiving social insurance benefits for old age, it must be based mainly on the biological basis of age and gender of the worker. Because the old age for receiving retirement benefits for each gender, each region, each country has certain differences. Therefore, there are countries that stipulate: men 65 years old and women 55 years old will retire. But there are also countries that stipulate: men 65 years old and women 60 years old... Or when determining the conditions for receiving benefits for occupational accidents and diseases, it is necessary to take into account factors such as: working environment conditions, labor protection,... These factors are often related and interact with each other and more or less affect the social insurance conditions of each regime and the entire system of social insurance regimes.

The duration of benefits and the level of social insurance benefits in general depend on each specific case and the time of social insurance premium payment of the employee on the basis of the correspondence between payment and enjoyment. At the same time, the level of benefits also depends on the general payment capacity of each social insurance financial fund; the general living standards of the population and employees. But in principle, this level of benefits is not higher than the salary or wages when the employee is working and it is only a certain percentage compared to the salary or wages. In developed countries, due to high wages, this rate is often low and vice versa, in developing countries, due to low wages, a fairly high rate must be applied. For example, in France, the pension benefit is only 50% of the highest salary (with the condition of paying social insurance for 37.5 years), sickness benefits are 50% of the salary, sick leave time

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receive benefits for no more than 12 months. Giving birth is entitled to social insurance benefits equal to 90% of salary within 16 weeks... In the Philippines, retirement benefits range from 42% to 102%, depending on different salary groups, sick leave is 65%, giving birth is entitled to 45 days off and benefits equal to 100% of salary...

However, the fact that countries stipulate social insurance benefits as a percentage of wages or salaries often leads to a deficit in the social insurance fund. Therefore, some countries have had to find solutions such as: paying immediately at retirement, or paying for life according to a percentage of a prescribed income level and receiving benefits according to a percentage of the prescribed level.

In addition to paying benefits according to social insurance regimes, the social insurance fund is also used for management costs such as: Salaries for those working in the social insurance system; depreciation of fixed assets, stationery and some other expenses... The idle fund must be invested to generate profits. The purpose of investing in the social insurance fund is to preserve and increase the fund source. The process of investing in the social insurance fund must ensure the principles: safety, profit, solvency and ensuring economic and social benefits.

From different concepts, understandings and approaches in different countries and periods, so far there have been many different definitions of insurance. In Vietnam, in the book "Insurance Textbook" of the National Economics University, published by the statistical publishing house in 2005, the most general concept of insurance is defined as follows: "Insurance is an activity in which the insurer commits to compensate the insured in case of a risk occurring within the scope of insurance, provided that the insured pays a fee to himself or a third party" [45, p.13].

The above definition is the most general of insurance, it specifies that the person

participating in insurance transfers the risk to the insurer (usually an organization)

business) by paying a fee to form a reserve fund. When an insured person encounters difficulties leading to losses, the insurance agency will use the reserve fund to subsidize or compensate for damages within the scope of insurance for the insured person registered with the insurance organization.

Insurance activities are essentially the process of redistributing income among participants to meet financial needs arising when accidents and risks cause losses to the insured. This is reflected in the formation of an insurance fund from the premiums paid by the insured. When the insured encounters an event under the contract, the insurance fund will compensate according to the agreement. Thus, the income of many people will be transferred to one person, which demonstrates humanity. The process of redistributing income in insurance is carried out.

Distribution in insurance is uneven, unequal distribution, meaning that not all participants are distributed and distributed an equal amount of money. Only a few insurance participants who are unfortunate enough to encounter risks under the insurance contract receive distribution, which also means that distribution in insurance is not compensatory, meaning that even if they participate in contributing to the insurance fund but do not suffer losses, they will not be distributed. However, in different types of insurance, this characteristic is also expressed differently. Specifically, with most types of commercial insurance, non-compensatory distribution is clearly expressed. For example: accident insurance, fire and explosion insurance, civil liability insurance, property insurance. health insurance... most insurance buyers are not distributed because they do not encounter incidents, only a few people are compensated. In some life insurance services currently being implemented such as old age insurance, university insurance, marriage insurance (implemented by international insurance company Prudential) or retirement insurance in social insurance, the nature of compensation in distribution is quite clear. In these forms of insurance,

Most insured people are covered when they meet certain conditions.

case agreed by both parties.

Through the above analysis, we see that insurance activities are based on the principle of "the majority compensates the minority" which is reflected in the process of establishing insurance reserve funds as well as the process of distributing compensation. This principle also demonstrates the mutual assistance, sociality and deep humanity of society in the face of the risks of each member.

In economic and social activities, if people want to survive and develop, they must first eat, wear, live and travel... To satisfy those minimum needs, people must work to make necessary products. When more and more products are created, people's lives become more and more complete and perfect, and society becomes more and more civilized. Thus, satisfying people's needs for living and development depends on their ability to work. But in reality, people do not always have favorable conditions, have full income and all normal living conditions. On the contrary, there are many difficult and unfavorable situations that more or less randomly arise, causing people to reduce or lose their income or other living conditions. For example, suddenly falling ill or having an accident at work, losing a job or when old age comes, the ability to work or the ability to take care of oneself is reduced... When falling into these cases, the necessary needs in life do not disappear, on the contrary, some increase, and some new needs even appear such as: needing to be examined and treated when sick; serious injuries and injuries requiring care and support... Therefore, in order to survive and stabilize life, people and human society must find many different solutions such as: sharing, supporting each other within the community; borrowing, lending or relying on state aid... Obviously, those methods are completely passive and uncertain.

When the commodity economy developed, hiring workers became popular. At first, the employer only committed to pay wages, but later had to commit to ensuring that the employee had a certain income to cover their necessary needs in case of illness, accident, maternity, etc. In reality, many times the above cases did not occur and the employer did not have to pay a single penny. But sometimes they happened in succession, forcing them to spend large sums of money at once that they did not want to. Therefore, the employer-employee conflict arose, and the workers united to fight to force the employer to fulfill the commitment. This struggle became increasingly widespread and had many impacts on the socio-economic life. Therefore, the State had to intervene and harmonize the conflict. This intervention, on the one hand, increased the role of the State, on the other hand, forced the employer and the worker to pay a certain amount of money every month, which was carefully calculated based on the probability of risks occurring to the employee. The contributions of employers and workers form a centralized monetary fund on a national scale. This fund is also supplemented from the state budget when necessary to ensure the lives of workers when facing adverse events. It is these binding relationships that spread the risks and disadvantages of workers, and the lives of workers and their families are increasingly stable. Employers also find themselves benefiting and protected, production and business are carried out normally, avoiding unnecessary disruptions. Therefore, the centralized monetary fund is established increasingly large and quickly, the fund's ability to handle major problems is increasingly guaranteed.

All of the activities with the above closely related relationships are considered by the world as social insurance for workers. Thus, social insurance is a guarantee to replace or partially compensate the income of workers when they encounter events that reduce or lose their ability to work.

unemployment on the basis of forming and using a centralized monetary fund to ensure the lives of workers and their families, contributing to ensuring social security.

Social insurance is an important part of the State's socio-economic policy; Social insurance is essential for all social classes, regardless of whether they are rich or poor, high or low status. The more developed a social insurance system is in a society, the more developed and stable that society will be, making workers feel secure, excited, and actively produce more material wealth for society. In that spirit, according to the Vietnamese encyclopedia, "Social insurance is the guarantee, replacement or compensation of part of the income for workers when they have reduced or lost income from their profession due to reduced or lost working capacity or unused labor through the formation and use of a financial fund contributed by the parties participating in social insurance, in order to contribute to ensuring economic security for workers and their families, and at the same time contributing to ensuring social security".

In our country, before the renovation period, on the basis of the 1946 Constitution, the Government issued decrees on sickness, maternity, work-related accident, and retirement benefits for state employees, namely: Decree No. 29/SL dated March 12, 1947 signed by President Ho Chi Minh regulating the subsidy regime for workers; Decree No. 76/SL dated May 20, 1950 and Decree No. 77/SL dated May 22, 1950 signed by President Ho, regulating the implementation of sickness, maternity, work-related accident, and retirement benefits for state employees.

Next is Decree No. 218/CP dated December 27, 1961 of the Government Council on the temporary regulations on social insurance regimes for civil servants and public employees, Decree No. 161/CP dated October 30, 1964 of the Council

Government on the regulations on treatment for soldiers. This is the first and most important document on social insurance in our country during this period, the documents clearly stipulate the subjects and scope of regulation. Regulations on social insurance regimes include 6 regimes: sickness, maternity, work-related accidents or occupational diseases, loss of working capacity, retirement, and death. Regulations on the rights and obligations of the parties involved in social insurance. Social insurance regimes are established based on the principle of distribution according to labor, in order to encourage people to actively work, boost production, and contribute to stabilizing the labor force in the national economy. The level of social insurance subsidies is based on working time, age, working conditions, and the state of reduced working capacity. The level of social insurance subsidies is closely linked to wages and must be lower than the wage when working. Regarding organization and management, the Ministry of Labor, War Invalids and Social Affairs manages 3 regimes: loss of working capacity, retirement, and death. The Vietnam General Confederation of Labor manages the implementation of three regimes: sickness, maternity, work-related accidents or occupational diseases.

Decree No. 236/HDBT dated September 18, 1985 of the Council of Ministers on social insurance regimes was amended to take into account preferential policies for those who participated in the two resistance wars and civil servants working in remote, difficult and arduous places and islands. Decree No. 236/HDBT added the conversion of working time according to the coefficient. Decision No. 133/HDBT dated November 1, 1985 of the Council of Ministers was to raise the pension rate to a maximum of 95% of the monthly salary before retirement.

Social insurance policies during this period still have many limitations such as: The subjects participating and enjoying social insurance regimes are only implemented for state employees and armed forces, social insurance policies are also intertwined with many other policies such as social incentive policies, civil policies, etc.

Number, staff policy... Social insurance financial resources depend mainly on the State budget, social insurance financial relations are not considered as important as social insurance revenue and expenditure. However, social insurance policies during this period have concretized the Party and State's policies in accordance with the socio-economic conditions of the country during this period.

Article 140 of the Labor Code of the Socialist Republic of Vietnam stipulates that “The State regulates the social insurance policy to gradually expand and improve material security, contributing to stabilizing the lives of workers and their families in cases of illness, maternity, retirement, death, work accidents, occupational diseases, unemployment, risks or difficulties. The social insurance regime is the concretization of the State's social policy regulations, regulations on forms of security, material and spiritual conditions for workers and their family members when they encounter a reduction or loss of income. Our State considers social insurance an important policy throughout the process of socio-economic development.

Since the establishment of the Social Insurance, on January 26, 1995, the Government issued the Social Insurance Regulations attached to Decree 12/CP for employees working in economic sectors and Social Insurance for officers, professional soldiers, non-commissioned officers, soldiers of the People's Army and the People's Police. The Social Insurance Regulations include 5 specific regimes as follows:

- Sick leave.

- Maternity leave.

- Occupational accident and disease regime.

- Retirement mode.

- Death benefit.

Social insurance in Ninh Binh province today - 2

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