Commercial insurance refers to the form of for-profit insurance operated by professional insurance enterprises through the conclusion of insurance contracts. Commercial insurance relationship is a contractual relationship concluded by the parties voluntarily. The insured pays the insurance premium to the insurance company according to the contract, and the insurance company shall be liable for the property losses caused by the possible accidents agreed in the contract, or the death, disability, illness or reaching the agreed age and time limit of the insured.
The so-called social insurance refers to a social security system that forms a social insurance fund by collecting insurance premiums to provide basic living security for members who lose their working ability or job opportunities due to old age, illness, maternity, disability, death and unemployment.
Insurance characteristics
1. The business entity of commercial insurance is a commercial insurance company.
2. The insurance relationship reflected by commercial insurance is embodied in the insurance contract.
3. The objects of commercial insurance can be people and things (tangible and intangible), and the specific objects are people's life and body, property, interests, responsibilities and credit related to property.
4. The business of commercial insurance should aim at profit, so as to obtain the maximum profit and ensure that the insured can enjoy the maximum economic security.
An insurance company shall take the following organizational forms:
1, Limited by Share Ltd; Division is also called "division? Insurance Co., Ltd. A joint-stock insurance company refers to a joint-stock company established and engaged in insurance business with the approval of the national insurance regulatory agency. All its capital is divided into equal shares, and shareholders are liable to the company to the extent of their shares, and the company is liable to the company's debts with all its assets.
2. Wholly state-owned companies. That is to say, in addition to these two specific forms of insurance companies, other forms of enterprises. No organization or group may engage in commercial insurance business. Limiting the business subject of commercial insurance business to insurance companies established in accordance with this law and prohibiting other units and individuals from engaging in commercial insurance business is conducive to protecting the legitimate rights and interests of policyholders, insured and beneficiaries, maintaining the normal order of the insurance market and giving full play to the protection role of insurance.
References:
Baidu encyclopedia commercial insurance