ANNOTATED OUTLINE 20-2 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
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.
20-4 Social security benefits extended to workers in India may be put under the following heads Social Security Social Security in India Social security benefits in India
Sickness benefit in cash
Old age pension or retirement benefits
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 Social Security
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.
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.
The Maternity Benefits Act, 1961 Social Security
20-9 Social Security 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.
20-10 Social Security 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.