The Research For Minimum Payment Trap In The New Rural Social Endow Ment Insurance

The problem of rural endowment is becoming more and more emergent because of pop-ulation aging. The large population in poverty and weakening function of conventional family and land endowment leads to insecure life of old rural people, Urgent need of social endow-ment insurance system to protect the elderly life of rural residents.A pilot runs of the new rural social endowment insurance (NRSEI) is carried out in Baoji, which turns out to be considerably effective. The system is based on individual payment, col-lective allowance and government subsidies, accompanied with complementary policies, i.e. the combination of fundamental annuities and personal account. One characteristic of NRSEI is dividing rural people’s payment into5categories based on the difference in their income. Everyone may choose a payment category according to their economic condition and forecast of endowment expenditure. During this study, it is found that a phenomenon that most people chose the category of least payment which will cause problems of government’s capital turn-over and endowment incapability.In this study, the cause of minimum payment trap (MPT) is addressed from the pers-pective of trust issue. There are two implications underlying rural people’s choice of mini-mum payment-insurance coverage and minimum payment. In terms of the two implications, the cause of MPT is investigated. On one hand, the consciousness of the village among rural people and identity of trust and feeling with each other, such the matter of face, push people to attend NRSEI. On the other hand, the so-called rational investors, i.e. the rural people who have little trust in the system and the local government, also prefer to attend the endowment insurance by paying the minimum limit. This study is carried out with the following5parts. In the first part of introduction, the status of researches on rural people’s endowment, opinion poll of insurance purchasing and MPT is widely reviewed. The second part is dealing with characteristics and current situation of Baoji Mode of NRSEI, which are discussed on the ba-sis of general information of Baoji and the reason to choose Baoji as the place for pilot run of NRSEI. In the third part, some behavior caused by the insurance trap and its consequence is investigated. The fourth part is aimed to discuss the underlying cause of the formation of MPT. Though they are buying the insurance under pressure caused by emotional identity, rural people tend to choose the minimum insurance payment because the subjective evaluation based on their accumulated awareness and the lack of trust in the system makes them remain conservative about this new policy. In a word, the two contradictory forces generated by the trust issue and emotional identity leads to the formation of the MPT. In the last part, several potential solutions dealing with the minimum endowment payment trap are suggested.During the policy implantation, Baoji people were unwilling to attend the insurance policy or chose low-level insurance alone. In this research, the trust issue of Baoji people was discussed in two aspects. i.e. interpersonal trust and institutional trust. The root cause was investigated by analyzing the impact of distrust on sustainability. Feasible approach was also discussed in order to improve the sustainable development of policy implantation. In this study, the implication of the new rural social endowment policy and the effect of’trust’on sustainable development was first addressed. After that, the phenomena of people distrust against the new insurance policy and the cause of trust crises were addressed in terms of interpersonal trust and institutional trust. At last, the influence of trust issue on the sustainable development of the new insurance policy and the probable method to build rural people’s trust were was investigated.