20-1 EXCEL BOOKS SOCIAL SECURITY

INTRODUCTION ANNOTATED OUTLINE 20-2 ANNOTATED OUTLINE INTRODUCTION The basic purpose of social security is to protect people of small means from risks (such as accidents, illness, invalidity, disease, old age etc) which impair a person’s ability to support himself and his family. Social Security

Objectives of social security 20-3 Objectives of social security Social security measures aim at three things Compensation: Offer financial help when the worker is in a state of physical distress due to accidents, sickness, invalidity, disease, and old age. Restoration: Enable the worker to recover from the shocks injected by the inhuman industrial work, rehabilitate himself and get on with his work in a usual manner. Prevention: Extend monetary assistance to workers so that they can get rid of sickness, idleness, disease etc. Social security benefits are provided in two major ways in India: Social insurance: In this scheme, a common fund is established with periodical contributions from workers out of which all benefits in cash or kind are paid Social assistance: In this case, benefits are offered to persons of small means by the government out of its general revenues. Social Security

Social Security in India 20-4 Social Security in India Social security benefits extended to workers in India may be put under the following heads Social security benefits in India Medial care Sickness benefit in cash Old age pension or retirement benefits Invalidity pension Maternity benefit Accident benefit Survivor’s benefit Social Security

The Workmen’s Compensation Act, 1923 20-5 The Workmen’s Compensation Act, 1923 Welfare facilities could be classified into two categories; Intramural (provided within the establishment) and Extramural (undertaken outside the establishment ). Intramural and Extramural welfare measures: ILO The Act aims at compensating the worker adequately in case of injuries or accidents suffered by him during and in course of employment. Coverage: all workers employed in factories, mines, plantation, transportation, construction works, railways, ships etc; does not apply to casual workers Administration: the commissions appointed by respective governments Benefits: three conditions must be met: There must be an injury It should be caused in an accident It must be caused during the course of employment Assessment: entire liability for compensation is placed on the employer; so many employers in small industry find it difficult to pay the compensation. Social Security

The Employee’s State Insurance Act, 1948 20-6 The Employee’s State Insurance Act, 1948 The ESI Act offers medical help and unemployment insurance to industrial workers during their illness. Coverage: all factories run with power, employing 20 or more persons drawing less than Rs. 3000 per month Administration: ESI Corporation, an autonomous body set by the central government. Funds: employer contributes 4% of the wage bill and employee contributes 1.5% of his own wages towards the ESI Fund Benefits: the scheme provides for 5 types of benefits to injured persons through an extensive network of more than 500 centres all over India: Social Security

The Employee’s State Insurance Act, 1948 20-7 The Employee’s State Insurance Act, 1948 Sickness benefits Maternity benefits Disablement benefits Dependents' benefits Funeral benefits Assessment: Not popular with unions and employees, as many complain About inadequacy of facilities and benefits. There is considerable delay In making payments to workers. Employers often get away without Making any payments to injured persons Social Security

The Maternity Benefits Act, 1961 20-8 The Maternity Benefits Act, 1961 It provides for payment of maternity benefits to women workers on certain conditions; Benefits: maternity leave upto 12 weeks; with full wages; additional sum of Rs.25 paid if employer offers no medical care; the women employee, however, must have worked for at least 100 days in 12 preceding months Assessment: employers discharge women employees on first signs of pregnancy and thereby escape liability; most women employees are ignorant about the provisions of the act, and do not claim benefits. Social Security

The Employees’ Provident Funds And Miscellaneous Provisions Act, 1952 20-9 The Employees’ Provident Funds And Miscellaneous Provisions Act, 1952 The EPF and Miscellaneous Provisions Act offers retirement benefits to workers in the form of provident fund, pension and deposit linked insurance. Group Insurance Group life insurance scheme provides insurance cover to several employees working under one employer, as long as they remain in service of that employer. Social Security

An Overview of Social Security Measures In India 20-10 An Overview of Social Security Measures In India Social security measures have not been able to live up to the expectations of workers in India on account of several reasons. why social security measures have failed to live up to the promise? Cover only workers in organised sector. Does not offer unemployment insurance Several schemes hare in-built weakness; as a result, the beneficiaries are put to lot of trouble and inconvenience. Lack of funds, facilities, trained staff to implement the schemes. There is considerable overlapping of schemes Most measures are in the nature of social assistance and not social insurance. Mostly employers have to make contributions. Social Security