The reserve in the form of insurance, that is, insurance fund, is a kind of reserve formed by insurance institutions collecting insurance premiums from policyholders through signing contracts, which is used to compensate the losses caused by insurance accidents. Its operation process includes three stages: insurance premium collection; The accumulation and use of funds; Economic compensation.
Insurance funds generally have four forms:
(1) Central State Fiscal Reserve Fund
The fund is a monetary fund set up in the national budget, which is specially used to pay for unexpected expenses and special needs in the national economic plan, such as the relief of catastrophic natural disasters, foreign invasion, and "mistakes" in the national economic plan.
(2) Insurance funds of professional insurance institutions
That is, insurance companies and other insurance organizations raise insurance funds by collecting insurance premiums to compensate insurance units and individuals for losses caused by disasters or to pay insurance benefits due.
(3) Social security fund
As a national social policy, social security aims to provide a series of basic living guarantees for citizens. Citizens have the right to get material help from the state and society in case of old age, illness, unemployment, disaster and loss of working ability. Social security generally includes social insurance, social welfare and social relief.
(4) Self-insurance fund
That is, economic units raise insurance funds themselves to compensate for the losses caused by disasters and accidents. There are professional self-insurance companies abroad to raise funds to compensate the losses of parent companies and subsidiaries; China has? Safety production guarantee fund? , through the establishment of funds, the implementation of industry self-protection, such as the establishment of sinopec group? Safety production guarantee fund? This is the form.