socially be required to be insured against their

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Last updated: April 17, 2019

sociallyand economically. These strategies can broadly be divided into .(a) SocialInsurance(b) Socialassistance(c)Employers liability(d)National Provident Funds(e)Universal Schemes(a) Social Insurance : SocialInsurance is compulsorily a contributoryemploymentutility approach whereby the benefit liability is passed directly orindirectlyon length of employment or period of contribution. The periodic cashpaymentsprovided on the occurrence of a specified social security contingencies areusuallyrelated to current or past earnings of contribution period. Benefits arefinancedentirelyor largely from specified contributions paid by the employee or their employersor both ina publicly supervised fund. Risks and resources are pooled in a socialinsuranceprogram.The social insurance thus attains the objectives of poverty prevention andattackingcontingent poverty.

(b) Social Assistance: By itsvery meaning it is an assistance to the citizens of aparticularcountry/state. This is a means tested approach whereby benefits are providedinprescribed categories of need. Determination by a state of categorizationcriteria subjectsto a meanstest. A periodic flat rate cash payment are designed to bring a resident.stotalincome upto community accepted minimum level.

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In this strategy of social assistance theentirecost of the social security is paid from the general revenues of Government.Thus thesocialassistance gains the objectives of poverty alleviation.6(c) Employers Liability : Thisstrategy of social security is aimed at involving theemployerin providing social security benefits to his employees whereby employers arerequiredby law to provide benefits like employment injury, sickness, Pension, ProvidentFund,maternity to their employees and their dependents. Employers may be required tobeinsuredagainst their social security risks with public or private insurance carriers.This alsoattainsthe objectives of attacking contingent poverty.

(d) National Provident Funds:The fourth in the approach to provide social security toitscitizens is the approach of Provident Funds where the nation designs a schemeofcompulsorysavings whereby covered employees and their employers pay regularcontributionto a publicly administered or supervised fund. These contributions arecreditedto a separate account maintained for each employee. The balance in theiraccountsattractsinterest and is payable in Lump sum upon the occurrence of a specifiedcontingencies.

Again this strategy attains the objective of poverty prevention.(e) Universal Schemes : Theuniversal schemes are not linked to income, employment orany othermeans. These universal schemes are usually financed from general revenues.Theseprogrammes are mainly governmental programmes and include old age pension forpersons ofa certain age, pension for disabled workers, widows, widowers, orphans andfamilyallowances.

There are also programmes in this category of strategy that arefinancedin partfrom contributions from worker and employer even though they receivesubstantialsupport from general revenues. The objectives of these strategies are againpovertyalleviation.OBJECTIVES OF SOCIAL SECURITYThemeaning of the Social Security as discussed above clearly indicates theobjectives ofSocialSecurity in the developing countries. These objectives are to ensure:1. Supportin the event of unemployment or non employment for young orphans,destitutewomen, incurably sick, old persons when there is none to take care of them.2. Showingor providing work to those who can work which includes job security andincomeguarantee.3.

Standardisation of income for maintenance of life at an optimum level.4. Protection against fall inincome due to any contingency.

independentIndia .During theperiod of colonial India- if we look back to the period of pre – 1919 i.e.pre-worldwar I period, the then Indian Government started sensing the necessity to havesocialsecurity benefits to the working class or working population when the factorysystemstarted growing with the establishment of Cotton mills in Bombay in 1851 andJutemills inBengal in 1855. The conditions prevailing in these factories were inhuman.

Theworking hours were excessive, provisions for safety were nil. Workers welfare,holidays,leave, medical care were taboos to talk about by the working class of thatperiod.When theIndustrialists faced problems of their existence with the growing accidents intheindustriesand factories and the resultant fear psychosis developed among the workersleading tounrest among the working population, they felt that there should be somesort ofsops to be given to the working class.

This ultimately resulted in theenactmentof Fatal Accidents Act 1855 on the model of English Fatal Accidents Act1846. Thisact has its own limitations. Provisions of the Act were highly inadequate.

Moreover,the Act does not permit certain dependants viz. brothers, sisters to claimcompensation.The rate of compensation was also very much inadequate and uncertain.The periodbetween 1919 and 1941 is worth noting in the history of social security inthecolonial India. World War I had a tremendous impact on the attitude ofGovernmentandsociety towards labour. With the cessation of hostilities the world turned topeace andreconstructionwhich gave birth to the establishment of ILO. ILO adopted as many as17conventions and which later increased to 28 social security conventions.

But ofall theconventionthe convention no.102 concerning the minimum standard of social security issignificant.It is a comprehensive instrument covering almost every branch of socialsecurityprovidedin minimum standard in respect of benefits payable in large number ofcontingencieslike sickness, unemployment, old age, death, employment injury, invalidityetc.

Indiahas however ratified only the following five conventions viz. -1)Workmen’s Compensation (Accident) Convention 1925 (No.17)2)Workmen’s Compensation (Occupational Disease) Convention 1925 (No.18)3)Workmen’s Compensation (Occupational Disease) Convention (revised) 1934(No.42)4)Equality of treatment (Accident) Convention 1925 (No.

19)85) Laterin 1962 the Equality of treatment (social security) Convention wasratified.The periodfrom 1920 in the history of working class is worth noting. This is thebeginningof Trade Unionism in India.

Workers started organising themselves forredressalof their grievances. In India as well as in several other countries theagitationslaunched during 1920 have led India to the passing of Workmen’s CompensationAct, 1923.Though this Act was passed on 5.3.1923 it came into force from 1.7.

1924. Theobject ofthe act was to “eliminate the hardship experienced under the commonsystem, byprovidingprompt payment of benefits regardless of fault and with a minimum of legalformality.”(Law Commission of India, sixty second report on the Workmen’sCompensationAct, 1923, 1974, p.6.). After this Act, the Government of India enacted theProvidentFunds Act, 1925. It was made applicable to Railways and GovernmentIndustrialestablishments.

During the same period i.e. in 1929 the Government ofBombayadopted the Maternity Benefit Act followed by the Central Provinces in 1930.On therecommendation of the Royal Commission on Labour, Ajmer Merwar in 1934, Delhiin 1937,Madras and United Province in 1938 passed maternity benefit legislation. Inadditionto these provincial legislations the Central legislation passed was for theMinerswith theenactments of Mines Maternity Benefits Act 1941. These legislations providedfor thepayment of Maternity benefit to the women employed in Mines.

Anotherlegislationaiming atabrogating the doctrine of common employment and assumed risk was passed in1938 byenacting Employers Liability Act 1938. If we look at the recommendations of theRoyalCommission on Labour which enquired during 1929 into the working conditions onIndustrialLabour the concern for the welfare of the workers and provisions against oldagecan beunderstood in its own words -.Industriallife tends to break down the joint family system. Those workers who,at thebeginning of their industrial career, own a plot of land, are often unable toretainpossession, and with the passage of the years the connection with thevillagebecame loosened. Workers in the mines are unable to save out of their lowearningagainst old age. Those in intimate touch with the life of the workers knowsomethingof their misery in which they pass their old age. The necessity formakingsome provision against old age need to be emphasised. A few employers,railwayadministration and government department have made provisions for someof theirworkers, either by means of a PF or by instituting a system of pension.

It isappreciated that in thisreport it is impossible to make provision for meeting ever

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