The full name of medical insurance is social medical insurance, which is a social security system established by the state to protect and improve the health of employees. It is enforced by state or local legislation, regardless of individual will. At the same time, as a social welfare undertaking, it is non-profit.
Commercial insurance, on the other hand, is an insurance operated by insurance companies in the form of economic compensation, which is an aspect of social and economic activities, and is realized by signing contracts between insurers and policyholders on a voluntary basis. Take Ping An Insurance Company as an example, it has launched many commercial insurance, including medical insurance, property insurance and travel insurance. The biggest advantage of Ping An Commercial Insurance lies in its wide coverage, which can supplement the single social medical insurance and bring comprehensive protection to consumers more widely.
Medical insurance and commercial insurance are also different in function and insurance object. Commercial insurance takes natural persons as the insurance object, and its function is that when the insured citizens have medical expenses due to accidental injuries or diseases, they can get certain economic compensation to reduce losses, not to protect the basic life of the insured, nor to maintain social justice. Social medical insurance mainly targets workers. When workers pay medical expenses due to illness, the social insurance department or its entrusted unit will give them basic compensation, which is conducive to social stability and social equity, and is actually the redistribution of national income.