A significant part of social security in Finland is provided through statutory insurances. This package is called social insurance. The insurance-based forms of social security include earnings-related pension, occupational accidents and diseases insurance, health insurance, unemployment security, and guarantee and national pensions.
Other types of mandatory and statutory insurance are accident insurance, motor liability insurance, patient insurance and environmental damage insurance. There is a specific act on each of them, obligating to take out an insurance policy in the situations defined in the act. Health insurance, income security for the unemployed and national pension are also based on insurance.
Employers take out pension insurance for their employees and self-employed persons for themselves.
The insured persons are paid pension
- for disability for work
- for old age
- following the death of spouse or parent (survivors' pension)
National pension and guarantee pension
National pensions and guarantee pensions are financed wholly by tax revenue. If a person's earnings-related pension is very small or the person has not acquired any pension rights the national pension and guarantee pension ensure a minimum income.
All people permanently resident in Finland are insured against sickness. The health insurance scheme is financed by employers, employees and the state together. Health insurance covers sickness and parents' allowances, reimbursement for medicine and travel expenses and reimbursement for expenses of private health care services.
All employees in Finland are insured against unemployment. The unemployment benefits are financed by the state and by employers and employees through their unemployment insurance contributions. If an employee or self-employed person has insured him/herself in an unemployment fund, the person is entitled to an earnings-related daily allowance if unemployed. Otherwise the person is paid the basic daily allowance or labour market support.
Insurance against occupational accidents and diseases
Employers shall take out an insurance against occupational accidents and diseases for their employees.
The insurance compensates for losses caused by occupational accidents or diseases.
Motor liability insurance
Vehicle owners take out insurance to cover all personal injury and damages to another party's property.
Patient insurance is taken out by professionals providing health care or medical care to compensate for harm caused to patients through accident or neglect.
Environmental damage insurance
Environmental damage insurance is taken out by an enterprise or corporation for whose activity permission by the environmental authorities is required.