It helps to understand concept and application of social insurance

1. SOCIAL SECURITY IN INDIA

2. Framework
 Definitions of social security
 Concept of Social Securities
 Need of social security
 Mile Stones In Social Securities
 Types of social security
 Social Security in India
 Organized sector
 Unorganized sector
 New Initiatives by govt.

3. Protection Provided by
the society
Through series of
public measure
Against Social and Economic Distress
• Sickness
• Maternity
• Injury or Disablement
• Unemployment
• Old age
• Death
Social
Security

4. Social Security
o India has always had a joint family system that took care of social security
needs of all members.
o Social Securities can be provided by Institutional and non Institutional
agencies.
o India is a good example of having non-institutional form of social security
measures in the world.
o its own social security system- because of Self sufficient village economy,
Cast System, Joint Family System and organization of charity.
o It had a religious backing also.

5. Joint
Families
Caste System
Self Sufficient
Village Economy
How did it all
start?

6. Concept of Social Security
 Social security systems ensure the minimum level of living to
the needy by public assistance, and they also promote public
health and social welfare.
 Social security has a powerful impact at all levels of society. It
provides workers and their families with access to health care
and with protection against loss of income
 It provides older people with income security in their
retirement years
 For employers and enterprises, social security helps maintain
stable labor relations and a productive workforce

7.  Why We Need of Social Security
 Most of the rural and informal sector workers in the world
do not have any social security measures.
 In India almost 90% of families earn their livelihood from
the unorganized sector.
 Needs that necessitates social security :
 Physical risks: Sickness, old age, maternity, accidents, death.
 Economic risks : Unemployment
 Economic burden of larger family

8.  Social Security is the need of the hour
 To guarantee at least long-term sustenance to families when the
earning member retires, dies or suffers a disability.
 Help people to plan their own future through insurance and assistance.
 To prevent deprivation, assure the individual of a basic minimum
income for himself and his dependents and to protect the individual
from any uncertainties
 To protect entire family (dependents) by giving benefit packages in
financial security and health care.

9.  Social Security systems : They play three roles
 Deal with factors that cause needy circumstances
 Minimum level of living
 Promote public health and social welfare.

10.  Types of social security : social security is of two
types
 Social assistance : A method to provide benefits to persons usually for the
vulnerable groups of community ( Children, mothers, disabled, old age people
etc.) from general revenues of the state, it is non-contributory.
 Social insurance: A method to provide benefits to person through
contributions of beneficiaries with contribution/subsidies from employer and
state.

11. .
SOCIAL ASSISTANCE SOCIAL INSURANCE
• Non-contributory • Financed by contributions
• Receive benefits either in cash or in-
kind (food aid)
• Worker is actively involved in
economic planning for his future
• Involves a feeling of charity, sympathy • Inculcates a sense of responsibility for
future planning
• Designed to supplement the incomes
of particularly vulnerable groups
(elderly and disabled)
• Provide for various contingencies that
interrupt or stop earnings
• Example:
1. National old age pension scheme
2. National family benefit scheme
3. National maternity benefit scheme
• Example:
1. ESI scheme
2. Contributory provident fund scheme
3. LIC schemes

12. Workmen’s
Compensation
Act
Trade Unions
Act
Payment of
Wages Act
The Factories
Act
The
Employees’
State
Insurance Act
1923
1926
1936
1948
1948

13. Minimum
Wages Act
Employees’
Provident
Fund and
Misc.
Provisions Act
Maternity
Benefit Act
Apprentices
Act
Payment of
Bonus Act
1948
1952
1961
1961
1965

14. Contract
Labour(Regulatio
n and Abolition)
Act
Payment of
Gratuity Act
Equal
Remuneration
Act
Child
Labour(Prohibitio
n and Regulation)
Act
Sexual
Harassment at
Workplace(Preve
ntion,
Prohibition and
Regulation) Act
1970
1972
1976
1986
2013

15. Social security in India
 Organised sector –
 defined as workers who are having a direct regular employer-employee relationship within a organization
 Unorganised sector –
 The unorganized sector workers are those who have not been able to pursue their common interests due to
constraints like casual nature of employment, invariably absence of definite employer-employee relationship,
ignorance, illiteracy, etc.

16. The Acts : Social Security issues mentioned in concurrent list
 Item no 23 :
 Social Security and Insurance ,
 Employment and unemployment
 Item No 24 : Welfare of labour
 Working condition
 Provident fund
 Employer lability
 Workman’s compensation
 Old age pension
 Maternity benefits

17. The Directive Principles of State Policy
Article 41
Right to work
Right to
Education
Right to Public
Assistance
Article 42
Just and Humane
conditions of
work
Maternity relief

18.  Social Security measure In India: Scheme for Organised
Sector
 Includes establishments covered by the Factories Act, 1948, the Shops and
Commercial Establishments Acts of the States, Industrial Employment Standing
Orders Act, 1946, etc.
 It has a structure through which social security benefits are extended to
workers Provided through following acts:
 ESI Act,
 EPF & MP Act,
 Workmen’s’ Compensation Act,
 Maternity Benefit Act,
 Payment of Gratuity Act.
 Factories act
 Minimum wages act

19.  Scheme for organised sector : Employees’ State
Insurance Act, 1948
Medical Sickness Disablement Dependants
benefit
Other
• Full medical
care is provided
to an insured
person and his
family.
• Medical care is
also provided to
retired and
permanently
disabled insured
persons and
their spouses on
payment of a
token annual
premium of
rs.120/-
• Cash
compensation at
the rate of 70
per cent of
wages, for a
max of 91 days
in a year.
• Worker is
required to
contribute for
78 days in 6
months.
• Temporary
disablement : in
case of
employment
injury. - 90% of
wage.
• Permanent
disablement :
90% of wage in
the form of
monthly
payment
depending upon
the extent of
loss of earning
capacity
• Death occurs
due to
employment
injury or
occupational
hazards
• 90% of wage in
the form of
monthly
payment..
• Funeral
expenses : an
amount of
rs.10,000/-
• Vocational
rehabilitation
• Physical
rehabilitation
: in case of
physical
disablement due
to employment
injury.
• Old age medical
care

20.  The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
(EPF & MP Act)
 Basically meant for security of workers after their retirement.
 It provides for lump sum payment of provident fund, monthly pension and
deposit linked insurance.
 Covers 187 specific scheduled factories and establishments employing 20 or
more employees
 The Employees’ Provident Fund & Miscellaneous Provisions (Amendment)
Act, 1996 :
was made on 16th Nov 1995, : for the word family pension fund “ the Word
Pension Fund” shall be substituted

21.  The Workmen’s Compensation Act, 1923
 Act takes care of two contingencies namely disablement due to employment
injury and death due to employment injury.
 A lump sum compensation amount is paid to the disabled worker or the
dependants as the case may be during both the contingencies.
 The Workmen’s Compensation Act is not applicable to those workers who are
covered by the ESI Act.

22.  Maternity benefit act, 1961
 Extends to the whole of India
 Entitled for paid holidays not exceeding 12 weeks in the case of maternity and
during this period they are eligible to receive full wages.
 Woman should have worked for period of not less than 160 days in the 12
months immediately preceding the date of her expected delivery
 Maternity Benefits (Amendment)Act, 2017 : 27th March 2017
 In the principal Act, in section 5,— (A) in sub-section (3)— (i) for the words
‘‘twelve weeks of which not more than six weeks’’, the words ‘‘twenty-six
weeks of which not more than eight weeks’’ shall be substituted.
 ‘‘Provided that the maximum period entitled to maternity benefit by a woman
having two or more than two surviving children shall be twelve weeks of which
not more than six weeks shall precede the date of her expected delivery;’’;

23.  Payment of Gratuity Act, 1972
 Provides 15 days wages for each year of service to employees who have
worked for five years or more
 Payable on -
 Superannuation
 Retirement or resignation
 Death or disablement due to accident or disease
 Payment of wage (Amendment) Act, 2017 :
 28th Dec 2016, Changes in Section 6 of Payment wage Act 1936,
 All Wage Shall be paid in current coin, cheque or by crediting to bank account
of the employee

24.  Minimum wages Act
 To promote welfare of workers by fixing min rates of wages in certain
industries because in many industries where labor is not organised.
 To prevent exploitation of workers
 Minimum wages has to be paid without any deductions
 Payment of wages less than minimum wages on the ground of performance
or output is illegal
 Working hours should not exceed more than 48 hrs/week with a holiday
 Not more than 9 hrs/day with 1 hr rest in between
 If person works more than 48hr/week than extra hrs are considered
overtime and overtime payment is double the wage

25.  Unorganised Sector
 The unorganized sector workers are those who have not been able to pursue
their common interests due to constraints like casual nature of employment,
invariably absence of definite employer-employee relationship, ignorance,
illiteracy, etc.
 Are also generally low paid and a majority of them are devoid of any of the
social security benefits like life and medical insurance, health care, maternity
benefits, and old age pension etc.

26.  Category of Unorganised Sector :
1) Occupation: Small and marginal farmers, landless agricultural labourers,
fishermen, those engaged in animal husbandry, beedi workers, building and
construction workers, etc.
2) Nature of Employment: Attached agricultural labourers, bonded labourers
migrant workers, contract and casual labourers
3) Specially distressed categories: Scavengers, carriers of head loads, drivers
of animal driven vehicles, loaders and unloaders
4) Service categories: Midwives, domestic workers, fishermen ,barbers,
vegetable and fruit vendors, newspapers vendors etc

27.  Scheme for unorganised sector
Scheme Eligibility Fund Benefit
Varishtha pension
bima yojana(2003-
04)
Indian citizens aged 55
years and above
Only single
premium is payable
•Monthly pension-
rs 250-2000
• Loan facility available
National rural
employment
guarantee scheme
(2005)
Any adult member
volunteer to do
unskilled work
Government aided
scheme
Atleast 100 days of
guaranteed wage
employment in every
financial year to every
household
National social
assistance
program(1995)
Needy elderly persons
and poor households on
the death of the
primary breadwinner.
Employee-none
Employer-none
Government-100%
• Old age pension scheme
• Family benefit scheme
• maternity benefit scheme
Unorganized sector
social security
•Voluntary
•Age 36-50yrs
Income related and
flat rate
Triple benefit-
•Pension scheme

28.  Unorganized Workers Social Security Bill, 2008
 Ministry of labour & Employment has enacted the Unorganised workers social
security Act,2008.
 Govt of India has approved a proposal for convergence of 3 major social
Security Scheme for Unorganised workers on a single smart card platform –
 RSBY, AABY, IGNOAPS for old age protection

29.  Unorganised Sector Rashtriya Swasthya Bima Yojana, 2008
 Initially designed to target only the BPL households, but has been expanded to
cover -
 Building and other construction workers, Licensed Railway Porters , Street Vendors, Beedi Workers , Domestic
Workers, Mine Workers, Rickshaw pullers, Rag pickers, Auto/Taxi Driver and MNREGA Workers,
 Covers all BPL unorganized sector workers and their families (of five member )
 Beneficiary will be required to pay Rs 30 per annum as registration/ renewal
fee.
 Prescribed premium of Rs 750 per member-family will be borne by the Central
and State Governments in the ratio of 75:25.
 Benefits -
 cashless attendance to all covered ailments;
 Hospitalization expenses, taking care of most common illnesses,
 all pre-existing diseases to be covered,

30.  Unorganised sector : Janashree Bima Yojana, 2008,
 Provides insurance cover of Rs 20000 in case of natural death, Rs 50000 in case
of death or total permanent disability due to an accident, and Rs 25000 in
case of partial disability
 Premium is Rs 200 per beneficiary ( 50% of the from the ‘Social Security Fund’
and 50% contributed by the beneficiary/State Government/nodal agency)
 Eligibility criteria:
 Persons in the age group of 18 to 60 years
 Living below or marginally above the poverty line

31.  Mahatma Jyotiba Phule Jan Arogya Yojna (MJPJY)
earlier know as Rajiv Gandhi Jeevandayee Arogya Yojana ( RGJAY )
 OBJECTIVE:
 To improve access of BPL and APL to quality medical care for identified speciality services requiring
hospitalization for surgeries and therapies or consultations through an identified Network of health care
providers.
 SCHEME:
 The insurance policy/coverage under the RGJAY can be availed by eligible beneficiary families residing in all the
35 districts of Maharashtra.
 BENEFITS:
 The scheme entails around 971 surgeries/therapies/procedures along with 121 follow up packages in following 30
identified specialized categories.

32.  Newer Initiatives : Pradhanmantri Jan Dhan Yojana
 To ensure access to financial services, namely, Banking/ Savings & Deposit
Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
 Under the scheme:
 Account holders will be provided zero-balance bank account
 After Six months of opening of the bank account, holders can avail ₹5,000 overdraft from the bank.
 A person can transfer funds, check balance through a normal phone which was earlier limited only to smart
phones so far.

33. Social Insurance Schemes
Pradan Mantri
Jeevan Bima
Yojana
• Premium Rs.330/- Year
• Coverage: Rs.200000/-
• Age group : 18-50 years
Pradhan Mantri
Suraksha Bima
Yojana
• Accident cum Death Insurance
• Coverage: Rs.200000/-
• Premium: Rs.12/- year
Atal Pension
Yojana
• Workers in unorganized sector
• Age group: 18-40
• Govt. to contribute 50% of total contribution
or Rs.1000/- for the first five years

34. Indira Gandhi
National Old Age
Pension Scheme
• 65+ years of age
• Widows are entitled to a pension for one year
• Physically Challenged above 45 years are entitled
to pension along with education, lodging and
boarding facilities
National Family
Benefit Scheme
• Fully sponsored by Central Govt.
• Lump sum benefit for households below the
poverty line
• Rs.10000 in case of death of primary breadwinner
Janani Suraksha
Yojana
• Reduce Maternal and Infant Mortality Rate
• 100% Centrally Sponsored Scheme
Handloom
Weavers’
Comprehensive
Welfare Scheme
• Sponsored by both Central Govt. and State Govt.
• Health Insurance Scheme
Handicraft
Artisans’
Comprehensive
Welfare Scheme
• All artisans below 80 years of age
• Health care benefits
• Self and Dependents

35. Pension to Master
Crafts persons
• Above 60 years of age
• In receipt of National Awards, National merit certificates
or State Award
National Scheme for
Welfare of
Fishermen and
Training and
Extension
• Centrally sponsored
• Housing, Drinking water, community hall, etc. for fishers
• Improve Living Standards
• Skill Development
Janshree Bima
Yojana
• Life Insurance Protection to the rural and urban workers
below poverty line
• Aged between 18-59
• Covers 45 occupational groups
• Coverage: Rs.30000 for natural deathand Rs.75000 for
accidental or fatal death
Aam Admi Bima
Yojana
• Head of the family, one earning member
• Income falling below or marginally above poverty line
Rashtriya Swasthya
Bima Yojana
• Cashless Insurance for hospitalization in public as well as
private hospitals
• Family holding a yellow ration card to pay Rs.30 towards
registration for biometric enabled smart cards
• Medical care up to Rs.30000 per year

36. The Way ahead
 Policy and laws must be framed in such a way that they are mostly
concentrated for benefits of unorganized workforce.
 Public should made aware about the social security schemes.
 Effort should be made for public private partnership.