Benefits of a provident institution

Benefits of a provident institution

Provident institutions - provided that the role of the provident institutions is to propose, in the context of collective contracts, guarantees to employees to protect them from the risks of life, these provide financial benefits to victims affected by the occurrence. a disaster against which they were insured.

We have seen that the provident institutions did not operate only in the branches related to the category of "insurance of persons", as they were intended to guarantee against three main risks of life:
- disease,
- incapacity for work and disability,
- the death.

The benefits they deliver aim to cover economically these risks and, consequently, claims compensation essentially takes three forms:

(1) repayments of health costs, in addition to reimbursements made by social security (in case of illness),
2) daily allowances (in case of incapacity for work or disability),
3) Payment of death and / or annuities for spouses and orphans (in case of death).

Other benefits are now issued by the provident institutions, as part of the implementation of what has taken the name of "social action". Since these non-profit organizations alone have the improvement of the conditions of protection of employees, series of measures are put in place to help those who, among them, face difficult situations. They may be people with severe or disabled illness, people who are affected by the death of a relative, by a situation of divorce, in terms of over-indebtedness, etc.

The missions that the provident institutions are set as part of this "social action" are:
- to facilitate access to medical care and promote the prevention of the poorest people,
- help people in difficulty,
- provide support to the family by facilitating the integration of young people,
- to listen, advise and guide by promoting the development of social action services.

The measures of "social action" are financed by the establishment of funds drawn on contributions paid. This is how this system can allow, for example, to provide one-off support to an employee in a difficult situation.
The different types of provident institutions

Providenton institutions count three types of pension institutions, differing from each other by the nature of the agreement which has been the foundation of their creation, or in relation to the extended branches they bring together:

- Professional institutions can cover a profession, a professional category or a professional branch.

The legal act at the origin of their creation may be either a collective agreement (regulatory text in which all the statutes of the employees are defined within a professional branch, after the negotiations between the unions and the representatives Employers) or a collective agreement (agreement only dealing with one or more specified subjects relating to working and employment conditions, and signed between one or more employers, or one or more employer trade union organizations and one or more trade union organizations salary).

- Interprofessional institutions represent companies and employees who create this type of insurance organization. They can collect several companies and / or occupations, and / or cover multiple professional branches.

- Finally, corporate institutions bring together, as their name suggests, employers and employees working within the same company. The legal act at the origin of their constitution is the conclusion of a collective agreement or a collective agreement within the company.