SOCIAL INSURANCE, a comparatively new term which originated within the last dec ade in Germany (Socialversicherung) and France (assurance social), to cover that field of social or labor legislation, known heretofore as workingmen's insurance, labor insurance or even industrial insurance. The broadening of the term indicates not only the tendency to extend the methods of workingmen's insurance over other groups and social classes such as the agri cultural class or lower middle class, but also the desire to draw a clearer line of demarcation be tween this form of insurance and other branches of insurance conducted as a private business.
Though an enormous literature concerning Social insurance has grown up in America as well as in Europe, no generally accepted defini tion exists, and the new term is somewhat more difficult to define than the older term — work ingmen's insurance. In an official report pub lished by the United States government it is de fined as ((the method of organized relief by which wage earners, or persons similarly situ ated, and their dependents and survivors, be come entitled to specific pecuniary or other benefits, on the occurrence of certain emergen cies.° Dr. Fr. L. Hoffman defines it — uto com prehend.all efforts, methods and means to pro vide in conformity to insurance principles, a sufficient pecuniary method of wageworkers and others in moderate circumstances as against the economic consequences of industrial acci dents, disease, incapacity for work and finally dependence in old age resulting from sickness, infirmity or even imprudence or personal neg lect. The absence of a generally accepted defi nition results from the comparatively recent origin of the term and movement. The point of view is gradually gaining ground, however, that the term cannot be described simply on the basis of the groups to be insured, or the dangers against which insurance is provided, but largely on the basis of the methods, and the attitude of organized society, i.e., the state and its govern ment. Thus there exists private insurance operated for profit, and mutual insurance as a form of mutual protection, but in absence of a definite governmental policy mutual insurance is not necessarily social insurance, which latter comes into existence through legislative action.
Historically it holds true that social insurance is still largely workmen's insurance. That is ex plained by the fact that modern industrial so ciety is based upon a system of wage labor; that wageworkers exist by sale of their labor and, therefore, depend entirely upon the preser vation of their working capacity. On the other hand they are more exposed to all possible hazards because of the nature of their work and, therefore, are more in need of insurance protection. Finally the workingmen themselves have laid the foundation to social insurance through the development of mutual benefit so cieties through several centuries.
Divisions of Social The fol lowing divisions or branches of social insurance are at present recognized and exist in some countries: (1) Industrial Accident Insurance or Work ingmen's Compensation; (2) occupational dis eases insurance or compensation; (3) insurance against non-industrial accidents; (4) general sickness or health insurance; (5) maternity in surance; (6) invalidity insurance; (7) old age insurance; (8) funeral benefits insurance; (9) widows and orphans' pensions or insurance; (10) unemployment insurance.
This classification is based upon the forms of insurance in actual existence. Many efforts of a systematic classification have been made, usually on the basis of the economic or physical hazards involved. Barring vice and crime or general economic inefficiency and low wages, factors of a general character with which the social insurance method does not concern itself directly, the three conditions which threaten the workingmen's family are: (1) Absence of any wage-earner through premature death, which may be due to sickness, or industrial or non industrial accident; (2) the physical incapacity of the wage earner to earn, which may be tem porary or permanent, partial or total, and may be due to old age, sickness or accident; and (3) the inability of the able-bodied wage-earner to find a sale for his labor power.