A device for the pooling of risks by their transfer to an organization, usually governmental, that is required by law to provide indemnity (cash) or service benefits to oi on behalf of covered persons upon the occurrence of certain pre-designated losses. Social insurance is usually characterized by all of the following conditions: coverage is compulsory by law; except during a transition period following its introduction, eligibility for benefits is derived, in fact or in effect, from contributions having been made to the program by or in respect of the claimant or the person as to whom the claimant is a dependent: there is no requirement that the individual demonstrate inadequate financial resources, although a qualified status may need to be established; the methods for determining the benefits are prescribed by law; the benefits for any individual are not usually directly related to contributions made by or in respect of him but instead usually redistribute income so as to favor certain groups such as those with low former wages or a large number of dependents; there is a definite plan for financing the benefits that is designed to be adequate in terms of long-range considerations; the cost is borne primarily by contributions which are usually made by covered persons, their employers, or both; the plan is administered or at least supervised by the government; and the plan is not established by the government solely for its present or former employees. Examples in this country include social security, railroad retirement, and workman’s and unemployment compensation. In other countries, health insurance is often a government sponsored social insurance program.