The General Authority for Pensions and Social Security has confirmed that social insurance is an important part of the country’s economic and social system, as insurance contributes to providing a fixed monthly income for the insured or his family, when any natural or abnormal risks arise, which contributes to supporting the social stability of the family and its members. And raising the level of local consumption, which improves economic returns.
The Authority said, as part of its awareness campaign, “Know Your Law,” that one of the most important pillars on which social insurance is based is the Constitution, which was approved in Article (16) of it, stating that “society includes in its care childhood and motherhood and protects minors and other persons who are unable to care for themselves for any reason.” Such as illness, disability, old age, or forced unemployment, and he undertakes to assist and rehabilitate them for their own benefit and the benefit of society, and the laws of public assistance and social insurance regulate these matters.”
This article of the Constitution refers to two types of social support, one of which is insurance, the resulting of which is considered an acquired right for its subscribers and their eligible families within a legislative system that has its own laws and rules that regulate this process. This right results from subscription, which represents one of the sources of funding for the insurance system through deductions. A monthly salary to which each individual contributes to the system in exchange for the benefits he receives at the end of service, whether the benefits are a retirement pension or an end-of-service reward.
Insurance takes several forms, including what is fixed-term, with specific benefits, and what is mutual, such as the insurance system applied by the UAE and most Arab countries. This type of insurance is characterized by the fact that it depends on mutual cooperation between members of society to provide financial and social protection for individuals in the event of the occurrence of certain risks. It is based on the concept of solidarity and joint contribution to achieve financial protection for the insured or pensioner, so that it extends protection to their families after their death, assuming that the state takes care of these groups as if their breadwinner is still alive.
As for the other type of support, it is regulated by public aid laws, which is the aid that the individual receives without his financial participation. This aid is provided within programs and projects implemented by ministries such as the Ministry of Community Development according to specific conditions with the aim of securing a decent life for some groups and people with limited income, and in a way General The Pensions Authority is not a granting body and does not provide financial aid or assistance to any person or entity outside the categories specified by law who acquire their rights as a result of participation in the insurance system.
Insurance covers natural risks such as old age and death, or unnatural risks that may occur during participation in insurance, such as disability, whether resulting from a work injury or not, as well as occupational injuries and diseases arising during the practice of the profession or because of it, so that if the insured is exposed, God forbid, For any of these risks, and any of them leads to an impediment to his ability to work, the Pensions Authority shall pay a fixed monthly pension to him or his family in accordance with the terms and conditions.
According to this, social insurance is, in fact, an idea based on securing the future through a long-term project, in which retirement is not viewed as a goal but rather as a means of securing the future when reaching an age stage in which the insured is unable to perform his work, either due to reaching the age of Old age or any type of disability or occupational disease during the period of work.
Therefore, looking at insurance should be in the light of considering it a type of partnership between the concerned parties that contribute to the success of this system and enhancing its ability to meet all the goals that it aspires to achieve in the service of society, and that any party’s failure to fulfill its obligations takes insurance away from its path and goals, which it follows. First and foremost is enhancing family and social stability for participants and their families.
This awareness imposes great importance on talking about the roles and responsibilities assigned to each party, as the Authority is concerned with maintaining the financial sustainability of its fund by investing resources well in order to enhance its ability to fulfill its obligations towards current and future generations, and the subscriber is of great importance in enhancing his level of awareness about insurance. So that he can know how to benefit from it and obtain the best benefits that it provides, employers have the role of maintaining the subscription rules in order to preserve the rights of subscribers and support them, as this is one of the most important collective responsibilities.
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