A scheme for the payment of benefits by a government or government agency, in respect of contingencies to which people generally are liable (e.g., old age, sickness, accidental injury, death or unemployment), the benefits being payable in whole or in part out of a fund of contributions by insured persons and/or their employers. Membership of the scheme is commonly compulsory.
Compulsory insurance legislated to provide minimum economic security for large groups of people, particularly those with low incomes. It is primarily concerned with the costs and loss of income resulting from sickness, accidental injury, old age, unemployment, and the premature death of the head of a family. See also Legislated Coverages and Social Security.