One of the fundamental principles of social policy of the countries with the developed market economy is the obligatory social insurance whose mechanism allows to accumulate effectively and to distribute fairy the financial resources, providing the medical and social care for the workers and for the members of their families in risk cases. Presently there is a large number of jobs based on a quite new approaches of the to theory of research about the essence of the obligatory social insurance, however there is still no uniform, scientifically verified definition of this phenomenon. The majority of existing opinions reflect only separate parties of this social and economic institute, as type of social protection, concentrating attention at some specific functions of the substantial parties of this social phenomenon. Thus, social insurance should be considered from various points of view because the social economic phenomenon has a set of definitions. Concerning the definition of the essence of social insurance, six theoretic-methodological approaches have been determined:
1) A well-known theorist of social insurance N.A. Vigdorchik defined the social insurance as «a special form of the organized mutual help when the risk of misfortune is considered in advance, and the risk of material losses could be distributed also between all the participants» [2, p. 14]. According to our opinion this point of view shows interrelation of social insurance with commercial «a special form of the organized mutual help», «the risk of the for seen statistically counted misfortune», the possibility of material losses divided between other participants of the organization on the principles of solidarity and interchange, we called, in other words, social insurance assumes interchangeable participation of the all interested parties in the process.
2) The therminological and methodological multiaspect of social insurance has found the development in the definition given by one of the leading experts in the area of social insurance and management of social risks professor V. D. Roik: social insurance – «a set of social, economic and legal relations in the formation and distribution of the financial means which are necessary for the protection of the working population from social risks (economic aspect)», and also the system off «the rights and duties of subjects providing social guarantees insured for those who are (legal aspect)» [7, p.132 ].
3) There is such a point of view according to which social insurance methodologically coincides with personal insurance, i.e. with the standard insurance norms. For example, a well known expert in the field of the right of social security S. M. Kovalevsky considers that «the insurance mechanism providing protection from these risks, should be the insurance mechanism of personal insurance» [1, p. 14]. Otherwise, mechanism of social insurance could be worked out from the economic or commercial positions.
4) This approach to the essence of social insurance is based on the emergence of this insurance proceeding from the labor relations in the conditions of the market economy which is based generally on a private property of the means of production. Most detailable this approach to the definition of the essence of social insurance has been revealed by V. G. Pavluchenko in the manual «Social insurance» on the basis of the theoretical provisions of V.D. Roik stated in his book «Basis of social insurance».[6, p. 28]. It is necessary to add to the adherents of these views as E.E. Machulsky. [4, p. 26]. According to other adherent of this position such as V. G. Pavluchenko, the essence of the social insurance is expressed in the relations between wage labor and the capital, reproducing in the repeating cycles. Labor of the hired worker – as a specific good possessing the changing cost depending on social and economic development, based one the level of trade-union movement and other factors. There is a law of the cost of labor, and only on the basis of its action and functioning of the capital labor reproduction it because is carried out. For this author the cost of labor is a cost of the goods, services, the vital means are necessary for the person for the maintenance of normal activity, including the maintenance of the family, expenses for the education, medical care, satisfaction of cultural requirements, etc. In case when a worker can not participate in the working process (because off illness, disability, unemployment, etc.) there is a condition of material neediness for the worker (his family). Such a threat (risk) of nonparticipation in labor activity and material neediness is not a private affair (and risk) only of a certain worker. The specified risks gain public character. Therefore there is a need of solidary actions of all the participants of the process of production on ensuring the reproduction of labor at the moment of realization of the risk of material neediness. The market economy and the corresponding labor relations are being reproduced together with the specified risks for a considerable part of the population, creating threat to their material neediness because of the earnings loss and the are moval from production process. However the hired workers can't do without sale of the labor, as well as the capitalist whose object is receiving profit, can't exist without its purchase.
5) Such authors as Slivka A.V., Lomakina T.P., Shor I.M. united by the insurance theory have been presented in chapter 48 by Russian Federation Group and the Law Russian Federation «About the organization of insurance business in the Russian Federation» [8, p. 31]. According to the theory insurance is determined by the existence of the insurance risks and specific signs of social insurance to which they carry the following: binding character; the purpose – insurance protection of manpower; realization of a principle of collective solidarity; not always monetary form of social security; jurisdiction to bodies of social insurance. Authors note that, «these specific signs function within the general insurance theory and its fundamental principles and installations», namely: the attitude to risk as to the fundamental concept of insurance process; using of the insurance terminology; similarity of functions which possess commercial and social insurance (the risking function which the accumulation of insurance fees and their redistribution at insured events; investment function; preventive function).
6) T.A. Fyodorova and K.M. Gusova when defining of essence of social insurance start with social policy of the state, designating social insurance as the mechanism (or a form) of realization of this policy providing social protection of the population [3, p. 11].
According to our opinion, in all considered approaches of the definition of social insurance there are constructive elements opening its essence. However, from our point of view, in the definition of the essence of social insurance «social» is necessary ceed from the very concept.
In S.I. Ojegov's dictionary «social» is defined as public, relating to life of people and their relations in society. We consider that the essence of social insurance consists in public from a word «social» [5, p. 614]. The character processes of activity, interrelations and interdependence (interconditionality) of various social subjects of society and is defined by their specific relations in the risk of operating conditions.
Let us show, how we understanding.
The public relations, first of all, are economic, legal, sociopolitical relations which are objectively arising from the organic unity of interrelations, interactions and interconditionality of the existence and development of the citizens, their families, social groups and the state as a representative of the general requirements and interests of the specified subjects and society as a whole, providing condition of their satisfaction with a certain direct participation, necessary regulation and optimization at this level of social and economic and political development of society. The essence of a social status of citizens consists in real-life and being realized in the processes of public activity of material and non-material interests providing satisfaction of its (family) of material and non-material requirements. Depending on objective and subjective factors and the degree of realization of material and non-material interests of the citizens providing a certain level of satisfaction of its (family) various requirements, forms the appropriate material level and quality of life. The social status can not be only changed in time, but, it changing constantly under the influence of non-favorable facts. Positive influence is much rarer. For example, a sharp rise of prices, reduction of the volume of production, the loss of jobs, the reduction of the amount of production because of the financial crises. It reduces the social status greatly. In this regard each citizen is anxious about the protection of the social status from the negative impact of such events. First of all, everyone is interested in preservation, restoration or improvement of the major result of his social status – material level and quality of life. Each citizen is interested in preservation, restoration or improvement of his material level life quality, and social status which can worsen under some bad circumstances. For example:
the death of the citizen as a result of accident or professional disease, the whole family can the means off existence;
a trauma, a mutilation, other damages of health (including a disease) therefore the citizen can become a disabled person and will belong to social category (group) of disabled citizens; thus it can lose all or a part of the income, or there will be additional expenses on treatment that inevitably leads to deterioration of his (his family) material level and the quality of life, and the social status will be now;
the loss of work (unemployment) means another social category unemployed as a consequence the loss of earnings and means of livelihood;
disability at an old age leads to the loss of earnings, worsens material level and the quality of life (when there are no other sources of income), it brings the person to other social category – pensioners, etc.
As a result of objectively existing threats (risks) of making a harm to material level and quality of life of citizens, their social status, each of them and their collectives in the organizations (as cumulative worker). A realized need for the protection of the social interests is formed as a result a desire in the protection of his social interests appears. The citizen becomes aware of the necessity of social insurance from different damages and diseases, etc. Social insurance is necessary to rise up people’s material welfare the quality of life on the basis of rules and laws.
Social and insurance interest is an objective-subjective category and is a necessary condition of implementation of social insurance. Centuries-old experience shows that the most reliable and available source of necessary means at the specified losses, deterioration of social situation, the worse of material level and the quality of life of citizens is social insurance.
Thus, from above told it is necessary to draw a conclusion that the essence of social insurance consists in objective need of citizens in insurance protection of their social interests, directly expressed in its (families) property and non-property interests (in our their understanding), directed at satisfaction of his corresponding requirements in risk conditions of public forms of life and activity of social subjects with financial and economic participation and legislative regulation of these processes from the state.
The citizen – the individual, has social and insurance interest, that is, is interested in insurance protection of their social interests for the purpose of preservation, restoration or improvement of the material level and quality of life (including his families), the social status which can be worsen as a result of making damage to life, to health, its property, to its income and the existence conditions.
In the presence of the necessary financial means the citizen has the right and can carry out insurance protection of the social interests or social interests of other persons, including members of the family. When a person insurances himself, as we know, is at the same time the insurer and the insured person, and at insurance of other persons by him (insured) – only the insurer. The rights and duties of those and other subjects of insurance (beneficiaries) are regulated by rules of law generally by the insurance legislation, customs of a business turn in the insurance sphere. Thus, the essence of social insurance, in our understanding, is opened on the basis of the allocated theoretic-methodological approaches proceeding from which the following definition of the essence of social insurance is offered. The essence of social insurance represents a set of the organizational and legal and economic relations on protection the property and non-property interests (social interests) of the citizens for the purpose of preservation, restoration or improvement of their material level, quality of life and the social status, established de the low or by the social insurance treaty in case of unfavorable events. All these is possible of at the expense of monetary funds of insures created by them from insurance fees (awards) paid by the insurers and other sources of means.
- Babich A.M., Egorov E.V., Giltsov E.N. Social insurance in Russia and abroad. M, 1998, 68 p.
- Vigdorchik N. A. Theory and practice of social insurance (Theoretical bases of social insurance). M, 1925, 128 p.
- Gusov K.M. Right of social security. - M: Prospectus. 2001, 350 p.
- Machulsky E.E. Right of social security in the conditions of market economy: theory and practice of legal regulation. M: 2000, 210 p.
- Ojegov S.I. Russian dictionary. - M: Russian. 1987, 944 p.
- Pavluchenko V. G. Social insurance. M: «Dashkov and K». 2007, 412 p.
- Roik V.D. Bases of social insurance. - M: «ANKIL». 2005, 256 p.
- Slivka A.V., Lomakin T.P., Shor I.M. Theory of insurance and theory of social insurance: some common ground//Insurance business. 2007. №. 11.