Obligatory State Social Insurance as a Mechanism of Compensation of Social Risks

Abstract

The paper analyzes the peculiarities of the functioning of compulsory state social insurance system in Ukraine. Transition from the financing of compulsory state social insurance through the tax system to contributory scheme is crucial, since the concepts of «social tax» and «insurance premium» differ both in the socio-economic nature and the purpose in the social protection. The state nature of social security does not envisage the need of state financing of all social spending. Payment of insurance premiums, application of the conditions of the social security and legal responsibility are obligatory. State insurance is intended to ensure the legally certain standard of living for citizens. Insurance premium is one of the forms of reservation wage, which provides material payments and social services to workers in case of an insurance event. Insurance protection against social risks is determined as the object of legal relations for mandatory social insurance. Risk is actualized within the system of interconnected legal relationships. Their primary function is to ensure insurance protection of the economically active population in the event of social risk situation, its prevention and compensation of its consequences. Risk insurance function is transformed into a certain fee to the liability insurer for the consequences of risk due to the events, a list of which is consolidated in legislation. In the context of social security as a compensatory mechanism of social risks its following characteristics are distinguished: its only objective character, social insecurity, clear consolidation in the national legislation, the potential regularity for each person and warning functionality for events of the financial difficulties. Income and expenditure of the social funds constitute a significant part of the redistribution of the social product. It causes the need to create a backup system of compulsory social insurance. Since the unified social contribution remains the source of reserve funds, it is proposed to construct an appropriate model which is based on the use of elements of the theory of choice under condition of uncertainty. The main directions of improvement of the system of compulsory state social insurance are distinguished. They are: improvement of the mechanism of providing material support and social services to the insured persons, improvement of the differentiated insurance rates policy, providing of economic incentives for prevention of occupational risks.

Authors and Affiliations

V. I. NADRAGA

Keywords

Related Articles

Assessment of Competitiveness of Young Specialists with Economic Education in Ukrainian Labor Market

The article describes the method of estimating the competitiveness of young specialists in the labor market. The methodology provides subjective assessment obtained during a sociological survey of satisfaction of basic c...

БЕДНОСТЬ СЕЛЬСКОГО НАСЕЛЕНИЯ УКРАИНЫ

Бедность – социальное положение, характеризующееся наличием незначительных доходов, низким качеством рациона питания, ограниченным обеспечением товарами длительного пользования, низкой комфортностью жилья, а также недост...

Competence of Workers on the Labour Market of Ageing Societies in Poland and Germany

The purpose of this article is to answer the question, whether it is possible in an aging society, which is still actively involved on the labor market, to slow the aging process of knowledge and adapt to the changing ex...

БЛАГОУСТРОЙСТВО СЕЛЬСКИХ ПОСЕЛЕНИЙ УКРАИНЫ: СОВРЕМЕННЫЕ ПРОБЛЕМЫ И НАПРАВЛЕНИЯ ИХ РЕШЕНИЯ

Определены проблемы благоустройства сельских поселений и обоснованы направления их решения в условиях децентрализации, что будет способствовать уменьшению региональных диспропорций в со- циальном развитии сельских поселе...

ОЦІНКА ПОВ’ЯЗАНИХ ІЗ БАТЬКІВСТВОМ ПЕРЕВАГ ТА ВТРАТ ЗАРОБІТКУ В УКРАЇНІ

Проаналізовано фінансові втрати або переваги від батьківства в Україні. Із виконанням економічних моделей визначено відмінності у заробітках жінок та чоловіків, які мають дітей різного віку, а також залежно від соціально...

Download PDF file
  • EP ID EP287183
  • DOI 10.15407/dse2014.01.145
  • Views 101
  • Downloads 0

How To Cite

V. I. NADRAGA (2014). Obligatory State Social Insurance as a Mechanism of Compensation of Social Risks. Демографія та соціальна економіка, 21(), 145-157. https://europub.co.uk./articles/-A-287183