Here is a compilation of essays on ‘Social Security’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Social Security’ especially written for school and college students.
Essay on Social Security
Essay Contents:
- Essay on the Introduction to Social Security
- Essay on the Origin and Growth of Social Security Idea
- Essay on the Economic Significance or Importance of Social Security in India
- Essay on the Social Security Measures Adopted in India
- Essay on ILO and Social Security
- Essay on the Benefits Provided under Social Security (Scope of Social Security)
Essay # 1. Introduction to Social Security:
Social security is a dynamic conception, which is considered in all advanced countries of the world as an indispensable chapter of the national programme to strike at the root of poverty, unemployment and disease.
It has been considered most essential for the industrial workers, though, with the development of the idea of a welfare State, its scope now includes all sections of society.
Social security is that security that society furnishes, through appropriate organisation, against certain risks to which its members are exposed. These risks are essentially contingencies against which the individual of small means, or the worker, cannot effectively provide for by his own ability or fore-sight alone or even in private combination with his fellows.
It is characteristic of these contingencies that they imperil the ability of the working man to support himself and his dependents in health and decency. As the State exists for the general well-being of people, it is a proper function of the State to promote social security.
While all State policy has some bearing on social security, it is convenient to regard as social security services only such schemes as provide the citizen with benefits, designed to prevent or cure disease, to support him when unable to earn and to restore him to gainful activity.
Not all such measures, however, can be considered as affording security, for security is a state of mind as well as an objective fact. To enjoy security one must have confidence that the benefits will be available when required, and, in order to afford security, the protection must be adequate in quality and quantity.
Social security is a very comprehensive term and includes in it, schemes of social insurance and social assistance as well as some schemes of commercial insurance. It is necessary, therefore, to distinguish between these terms and have a clear idea about the scope of each, though, generally, the terms social insurance and social security have been used by some in the same sense, because social insurance forms the most important part of any social security scheme.
The mutual conflict between the employer and the employees over the question of adequacy of their respective shares in social produce constitutes the crux of the labour problem, of which collective bargaining and industrial conflict are the two most important aspects.
As industrialisation advances and worker is increasingly alienated from his previous socio-cultural world and thus faces various insecurities with regard to income and employment in addition to the natural ones for which the new order does not have structural provision.
Industrialisation brought about by industrial revolution has meant urbanisation. In ancient times if a person was unable to work on particular day, he was cared for by the village community or by the members of his family. But now urbanisation has so deeply uprooted these values that in times of sickness, unemployment, old age and other similar contingencies a worker has nothing to fall back upon.
In modern times social security is influencing both social and economic policy. Social security is the security that the State furnishes against the risks which an individual of small means cannot, today, stand up to by himself even in private combination with his fellows.
The quest for social security and freedom want and distress has been the consistent urge of man through the ages. This urge has assumed several forms according to the needs of the people and their level of social consciousness the advancement of technology and the peace of economic development.
“Social security envisages that the members of a community shall be protected by collective action against social risks causing undue hardship and privation to individuals whose private resources can seldom be adequate to meet them. It covers through an appropriate organisation, certain risks to which a person is exposed.”
The concept of social security is based on ideals of human dignity and social justice. The underlying idea behind social security measures is that a citizen who has contributed or is likely to contribute to his country’s welfare should be given protection against certain hazards.
Social security means a guarantee provided by the State through its appropriate agencies, against certain risks to which the members of the society may be exposed. Social assistance scheme provides benefits for persons of small means granted as of right in amount sufficient to meet a minimum standard of need and financed from taxation and social insurance scheme provides benefits for persons of small earnings granted as of right in amounts which combine the contributory effort of the insured with subsidies from the employers and the States.
Social security measures are significant from two points. First, they constitute an important step towards the goal of a welfare State. Secondly, they enable workers to become more efficient and thus reduce wastage arising from industrial disputes. Lack of social security impedes production and prevents formation of a stable and efficient labour force. Therefore, social security measures are not a burden but a wise investment which yield good dividends.
According to the report of the National Commission tin Labour, social security has become a fact of life and these measures have introduced an element of stability and protection in the midst of the stresses and strains of modern life. It is a major aspect of public policy today and the extent of its prevalence is a measure of the progress made by a country towards the idea of a welfare State.
Every one as a member of the society has the right to social security and is entitled to realisation through national efforts and international co-operation and in accordance with the organisation and resources of each state of economic, social and cultural rights indispensable for his dignity and the free development of his personality.
Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical cases and necessary social services and the right to security in the event of unemployment, sickness, disability, widowhood, old age, or other lack of livelihood, or circumstances beyond his control.
The role of International Labour Organisation in certain standards of social insurance has been significant. The Social Security Convention adopted in 1952 embodies universally accepted basic principles and common standards of social security.
In our country a number of social security legislations have been enacted from time to time. The earliest of such legislation is the Workmen’s Compensation Act which ensures payment of compensation in case of a personal injury caused by an accident arising out of and in the course of employment. Maternity Benefit Acts have also been passed by the Parliament and also in different States.
In U.P. it was passed in 1962. This Act primarily provides for maternity leave to woman workers. The Employees’ Provident Fund and Family Pension Fund and Deposit-Linked Insurance Fund Act, 1952 provides for retirement benefits. The Industrial Disputes Act ensures retrenchment and lay-off benefits.
Essay # 2. Origin and Growth of Social Security Idea:
In the past, the ancient mode of covering social risks was based on a system of poor relief. Legislation was undertaken for that purpose in many countries and poor houses were established. However, the whole system of poor relief was based on voluntary charity, and only local authorities were made responsible for giving relief to the poor.
This was found to be very insufficient, and it was soon realised that the risk of the individuals, especially those engaged in production, should be considered the responsibility of the whole society, Besides, poor relief only tackled, to some extent, the problem of want, but, “Want” in words of Sir William Beveridge, “is only one of the five giants on the road of reconstruction and, in some ways the easiest to attack. The others are Disease, Ignorance, Squalor and Idleness”. Hence, social assistance and social insurance schemes came into existence.
Social security originated in Germany, when in 1881, Emperor William I urged upon the Reichstag to adopt social insurance schemes. Bismarck was also a great supporter of social insurance in Germany. The Law, providing for sickness insurance in Germany, was passed in 1883; for workmen’s compensation on a compulsory insurance kasis in 1884, and for old age and invalidity insurance in 1889. Unemployment insurance was instituted as late as 1925.
The State intervention in matters of social welfare also greatly increased with the beginning of the present century as the evils of laissez-faire policy were realised to a greater extent; and as a result many schemes have been evolved in various countries by the State for providing a minimum standard of well-being for the industrial workers, who have suffered most at the hands of the capitalists, due to nonintervention of the State for a long time.
The wide-spread progress of social security schemes in different countries, in recent years, has been largely due to the efforts and activities of the International Labour Organisation, which deserves all the credit for its valuable work in this regard. It entered upon the task of drafting standards of social insurance laws in 1920, for the various countries.
In 1919, it adopted Conventions on maternity benefits; in 1921, 1925 and 1934, on workmen’s compensation; in 1927 and 1936 on sickness insurance; in 1933 and 1934, on invalidity, old age and survivors insurance; in 1928, on minimum wages; in 1934 on unemployment insurance and in 1944, on income security and medical care.
These Conventions have been ratified by many countries and closely followed in several other which have not yet ratified them. For a country, intending to adopt social insurance for the first time, they constitute a model to follow and approximate.
The Preparatory Asian Regional Labour Conference, held in New Delhi in 1947, also adopted a comprehensive resolution on social security, recommending that the progress of social security schemes in various Asian countries should be accelerated. In 1938, there was also a very important Social Security Act, passed in New Zealand, which provided for a universal and compulsory social insurance system financed out of a social security tax.
The war of 1939-45, further strengthened the necessity introducing or promising to introduce social insurance measures which, by welding together the different strata of population in a common purpose, by mitigating injustice, by protecting the people healthy, and by alleviating economic anxieties, increase a country’s power of defence.
The aftereffects of the War, which created a scarcity of many countries and gave rise to the problem of reconstruction, further, pointed out the necessity of some schemes of social security. Almost every industrially advanced country in the world has now recognized the importance of social insurance, and the problem of social insurance planning has been taken up in many of them, and in several cases the plans have been finalised and put into practice. In countries, like the U.S.A., Australia, Canada and New Zealand, extensive schemes of social insurance have been adopted.
The Beveridge Report of British Social Insurance and Allied Services which was published in London, in 1942, and became the talk of the world, have now been put into practice. It envisages complete compulsory State insurance against every form the personal want and insecurity. The Marsh Report on ‘Social Security’ for Canada, and the Murray-Dingell Bill of the U.S.A. also provide examples of the wide scope of social insurance schemes as applied in many countries.
Essay # 3. Economic Significance or Importance of Social Security in India:
Although social security measures had been introduced in many countries decades ago, in India they were introduced only after the independence of the country because of the lack of official sympathy and the weakness of trade unions. Thus, the importance of social security measures in India cannot be exaggerated.
It is a well-established fact that ours is a poor country and the wages of our workers are so low and so niggardly as to permit anything but a below subsistence standard. In some parts of the country, it is too low to maintain a minimum standard. Sir William Beveridge has rightly remarked that “the more you are poor, the more you need social security. Really social security is a measure to increase the national welfare.”
Indian workman is composed of social evils like disease, unemployment, ignorance, squalor and illiteracy which endanger the safety of their life. They find themselves unable to fight against these contingencies due to their low earnings, high prices, high birth and death rates etc.
The worries for maintaining himself and his dependents ultimately affect the efficiency of the worker to a great extent. The provisions of social security measures may prove to be of great help to the workers in emergencies. Many social evils such as beggary, dishonesty, prostitution etc., take place only in poverty and can be removed through to social security schemes.
The working conditions in Indian industries are quite unhygienic and distressing. The worker is insecure as regards employment. He may be kicked out of job at any time unsympathetically. The social security measures provide security to the worker against unemployment.
The constitution of India has affirmed to all people of the country, inter alia, social and economic justice, but this has yet to be secured by peaceful social and legislative steps. The underlying idea behind social security measures is that a citizen who has contributed or is likely to contribute to his country’s welfare should be given protection against certain hazards.
Realising the importance of social security and assistance, the universal Declaration of Human Rights proclaims—”Everyone, as a member of society, has right to social security, and is entitled to realisation, through national efforts and international cooperation and in accordance with the organisation and resources of each state of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.”
Essay # 4. Society Security Measures Adopted in India:
Social Security measures in India were negligible before the Independence of the country. It was partly due to lack of official sympathy and the comparative weakness of the trade unions in pressing their demands for such measures. After Independence, India declared herself as a welfare state and, as such, several social security measures were introduced.
Some of the important social security measures are given below:
(1) Workmen’s Compensation Act, 1923:
In 1923, the government of India passed the Workmen’s Compensation Act intended to provide for the compensation to those workmen who sustain personnel injuries by accidents arising out of and in the course of their employment. The Act was amended several times viz. in 1962, 1976 and finally in 1984.
The Act applies to all permanent employees employed in railways, factories, mines, plantations, mechanically propelled vehicles, construction work and certain other hazardous occupations without any wage limit. The Act does not cover those employees who are covered by The Employees’ State Insurance Act and are in clerical or administrative capacity or in armed forces or on casual work.
The State Government administers the Act and is empowered to extend the application of the Act to other classes of persons or diseases not covered by the Act.
The State Governments have appointed Labour Compensation Commissioners for the settlement of disputed cases.
The employer is liable to pay, under this Act, the compensation in case of personnel injury caused by accident arising out of and in the course of employment. No compensation is, however, payable if the incapacity does not last for more than 3 days or is caused by the default of the worker, not resulting in death. Besides bodily injury, compensation is also payable in the case of certain occupational diseases as given in Schedule III. The State Governments are empowered to add any other disease to the list of diseases.
The amount of compensation payable depends on the nature of injury and the average monthly wages of the worker concerned.
For this purpose, injury has been divided under three categories:
(i) Causing death,
(ii) Total or partial permanent disablement, and
(iii) Temporary disablement.
The rates of compensation are fixed for all types of injuries according to wage-ranges.
The rates of compensation under the Act have been raised by The Amendment Act of 1984 and fixed as follows:
(i) In case of permanent disability, the compensation will be a minimum of Rs.24,000 and a maximum of Rs. 1.14 lakh.
(ii) In case of death on duty, the compensation will range from Rs.20,000 to 9,000.
(2) Employees State Insurance Act, 1948:
In order to provide sickness benefits to workers, the Employees State Insurance Act was passed in 1948. The Act applies to all non- seasonal factories run with power and employing 10 or more workers or 20 or more workers, if run without power. It covers all types of employees—manual, clerical, supervisory and technical—not drawing a salary of more than Rs.1600 per month. The scheme is compulsory and contributory. Compulsory in the sense that all workers covered under the Act must be insured and contributory in the sense that it is financed by the contributions from employees and employers.
The administration of the scheme has been entrusted to an autonomous body called the Employees State Insurance Corporation. The corporation is managed by a Governing Body of 40 persons representing the union and the State Governments, Parliament, employers and employees’ organisation and the medical profession.
This body elects a Standing Committee consisting of 13 members. A third body called Medical Benefit Council is constituted consisting of 26 members to advise the corporation on matters relating to medical benefits. State-wise regional boards have also been constituted.
The scheme provides five types of benefits to the insured workers and their dependents are:
(i) Sickness Benefits:
Sickness benefit is available to an insured worker in case of certified sickness. It consists of cash payment of 56 days in a continuous period of 365 days. No payment shall be made for an initial period of two days. The daily rate of payment is half of the average daily wage.
(ii) Disablement Benefits:
It is available in case of industrial accidents and injury. The nature of benefit differs with different types of disablements viz. temporary, permanent partial and permanent total disablement. In case of temporary disablement, the worker is paid at 7/12 of the full wages, during disablement. In case of permanent partial disablement the compensation will be paid at full rate on the basis of percentage of disablement. In case of permanent total disablement it will be paid at full rate for the whole life.
(iii) Maternity Benefit:
This benefit consists of a cash payment to the insured women worker at twice the rate of sickness benefit or 75 paise per day (whichever is higher) for a period of 12 weeks (6 weeks before and 6 weeks after the delivery). In case of miscarriage, the benefits shall be given for 6 weeks after miscarriage at the prescribed rates.
(iv) Dependents Benefit:
In case of death of an industrial worker during the course of employment as a result of injury, his dependent will be paid on the basis of relationship of deceased with the dependent. The widow will get 3/5 of the full wages till she survives or remarriages. Dependent sons will get 2/5 of deceased wages till the age of 15. Dependent’s each daughter will get 2/5 of deceased wages till the age of 15 or marriages (whichever is earlier).
(v) Medical Benefits:
This benefit is given to a worker claiming sickness benefit, maternity benefit or disablement benefit. This benefit is also available to the family members of the worker. It consists of free medical treatment at dispensaries and hospitals run by the corporation or at home of the sick.
The scheme was implemented in October 1948. As on 31st December 1983, there were 103 E.S.I, annexes and 1,073 dispensaries, including mobile dispensaries.
(3) Maternity Benefits Act, 1961:
Before Independence many States passed the Maternity Benefits Act for the expectant mothers but there was only one Central Act in this respect, the Mines Maternity Benefit Act 1941. The two other Central Acts providing maternity benefits to woman workers were also passed after Independence, the Employee State Insurance Act 1948 and the Plantation Labour Act 1951.
With a view to achieving the uniformity and minimum level of standard of maternity benefits, Central Government enacted in 1961 the Maternity Benefits Act 1961 which was amended in 1972 by the Maternity Benefits (Amendment) Act 1972. The Act applies to all mines, plantations and factories and also to all shops and establishments employing 10 or more workers except those covered by the Employees State Insurance Scheme.
The expectant mothers are entitled for 12 weeks leave, i.e. 6 weeks up to and including the day of delivery and 6 weeks immediately following that day, if they have put in 160 days service during twelve months preceding the date of expected delivery.
(4) Coal-Mines Provident Fund and Bonus Scheme Act, 1948:
The Coal-mines Provident Fund and Bonus Act were passed in 1948 to make the old age provisions for all coalmine workers (including the workers of the National Coal Development Corporation). The Act was amended in 1950, 1951 and 1965. Under these Act two different schemes, i.e., the Coal-mines Provident Fund Scheme and the Coal-mines Bonus Scheme are in application and these schemes have been amended several times.
Under the Provident Fund Scheme the employers contribute 8% of their total emolument to the fund and an equal contribution is made by the employees. In June 1-963 a provision was made in the scheme whereby the members are allowed to contribute voluntarily upto another 8% of their emoluments. The scheme is administrated by a Board of Trustees, consisting of equal members of representatives of the Government, employers and employees.
A Special Reserve Fund was set up to make the payment to outgoing members. A Death Relief Fund has also been set up to ensure a guaranteed minimum payment of Rs. 750 to the dependents of the deceased whose accumulations in the fund are less than the amount at the time of death. The employees Family Pension Scheme 1971 also applies to coal-mine workers.
(5) Employees Provident Fund Act, 1952:
The Act was passed in 1952 covering factories employing 50 or more workers in 6 major industries, viz., iron and steel, textiles, engineering, cement, paper and cigarettes. By an amendment in 1960, the scheme was extended to all factories of five years standing and with 20 or more workers. An exemption has been made for new undertakings, for a period of 3 years. Establishments employing between 20 and 50 persons are also exempted for 5 years. The scheme is contributory and compulsory.
The rate of contribution was 6-1/4% of the total emoluments of the employee which was raised to 8.33% with effect from 1st August 1988. The employer also contributes an equal amount to the fund. The rate of contribution is 10% where it was 8.33% earlier. The amount at the credit of this fund (including employer’s share depending upon the period of service) is paid in the event of death, permanent disability, super annulation, retrenchment, migration or on leaving the service. In the event of death, the balance in the fund is paid to the legal representative.
A special Reserve Fund was made for making the payment to outgoing members.
A Death Relief Fund has also been set up for affording financial assistance to the tune of Rs. 1,000 to the nominees of the deceased whose pay does not exceed Rs.500 p.m. at the time of death The Provident Fund Act 1952 was amended in 1971 to provide for the benefit of family pension to the members of the deceased in case of their death while in service.
(6) Family Pension Scheme, 1971:
A family pension scheme was started in 1971 for industrial workers who are covered by Provident Fund Schemes (Coal-mines Provident Fund and Employees Provident Fund). Under this scheme a financial assistance (Pension is provided to workers monthly after retirement till he survives and to his widow thereafter till she survives) is provided to the worker depending upon the employee’s last salary.
In case of premature death the pension is paid to his widow during her life time. The scheme is financed by the Central Government and the Provident Fund. All the administrative expense of the scheme is borne by the Central Government.
Under the scheme, an insurance benefit is also given to the dependent of the employee subject to a maximum of Rs.2000 in case of premature death of the employee. In case of retirement, a cash benefit of a maximum of Rs.9000 is also given.
(7) Compulsory Group Insurance:
The scheme was introduced by the Central Government with the cooperation of the Life Insurance Corporation and applies to certain groups of workers. The employees contribute certain amount monthly towards the premium. If the member dies while in service, an amount of Rs.10,000 is paid to the heir of the deceased. The U.P. Government has introduced the scheme for teachers, lawyers and police employees. The Government of Haryana has also taken certain steps.
(8) Payment of Gratuity Act, 1972:
The Government has also passed the Payment of Gratuity Act 1972 under which employees of such factories, mines, oil fields, plantations, ports, railways, companies, shops or other establishments in which 10 or more workers are entitled to get gratuity after rendering a continuous service of 5 years with the same employer.
The gratuity is payable at the rate of 15 days wages (pay + dearness allowance) for each completed year of service or Rs.50,000 or 20 months’ wages, whichever is less. The scheme applies to workers 2,500 or less including dearness allowance. In seasonal factories, workers are entitled to 7 days’ wages for each season as gratuity.
(9) Deposit-Linked Insurance Scheme, 1976:
This scheme was launched on 1st August 1976 for the benefit of employees covered under Employees Provident Fund Scheme, and Coal-mines Provident Fund Scheme Under this scheme, a legal heir of the deceased or the nominee under provident fund schemes will get the average amount of balance in the provident fund account of the deceased in three years preceding his death or Rs. 10,000 whichever is less. This scheme is financed by the Government and the employers. Workers or employees are not to contribute anything towards the scheme.
(10) Unemployment Allowance:
Unemployment allowance is given to those unemployed whose names are registered in employment exchanges. The scheme is current in 10 states. Punjab, Kerala, West Bengal, Gujarat, Maharashtra, Tamil Nadu, Karnataka and Rajasthan. The rates of assistance under the scheme range from Rs.40 to Rs. 100 p.m.
(11) Social Security Certificates:
Social security certificates were introduced on 1st June 1982. These certificates can be purchased by any person who is between 18 and 45 years of age, maximum for an amount of not exceeding Rs.5000. The holder of the certificate will get three times of the amount invested after 10 years. There will not be any premature payment but in case where the holder of the certificate dies after two years from the date of purchase the legal heir can claim the maturity value of the certificate immediately.
(12) Personal Accident Insurance Special Security Scheme, 1985:
The scheme is applicable to landless labourers’, small and marginal agriculturists and artisans’ families. Assistance is provided under the scheme to the tune of Rs.3000 in case of death of an earning member in a family. The income of which does not exceed Rs.5000 per annum. There are 78 districts, covered under the scheme.
The various social security measures are in operation in India to provide adequate cover to the workers against certain contingencies but these are not said to be adequate. Much more required in this direction by the Central and State Governments. The employers should also come forward and contribute liberally to such schemes.
The above schemes are only for workers of organised sectors. There is no such scheme for workers in unorganised sector. There are so many pitfalls in our social security measures such as no proper administrative machinery to carry out the schemes. There is hardly any coordination in the planning and the legislations.
Essay # 5. ILO and Social Security:
The International Labour Organisation was founded in 1919. The primary purpose of this organisation was of promoting social justice and improving the living and working conditions of workers throughout the world. It made a beginning in this field by emphasising the importance of comprehensive social security measures in the preamble to its constitution, in which it is promised, “protection of the workers against sickness, disease and injury arising out of his employment, the protection of children, young persons and women, provision for old age and injury.”
It can safely be said that, the wide spread progress of social security schemes in different countries, in recent years, has been largely due to the efforts and activities of the International Labour Organisation, which deserves all the credit for its valuable work in this regard.
It entered upon the task of drafting standards of social insurance laws in 1920, for the member countries. In 1919, it adopted convention on maternity benefits, in 1921, 1925, 1933 and 1934, on invalidity, old age and survivorship insurance respectively, in 1928 in minimum wages; and on 1934 on unemployment insurance.
In order to implement these measures, the I.L.O. took certain steps:
(i) It tried to create international standard by way of recommendations regarding the definition of social security,
(ii) It collected and spread the information about social security schemes in various countries.
(iii) It provided technical assistance and guidance to the member countries so that social security schemes may be properly formulated by them,
(iv) It promoted social security measures with the help of other social organisations.
In order to achieve a comprehensive social security programme for workers and bring about coordination in all activities related to all aspects of social security; the I.L.O. has worked in close collaboration with the United Nations, the World Health Organisation, the Organisation of American States, the European Economic Community and the League of Arab States.
The latest trends regarding the provision of comprehensive social security were brought out by its recommendations on income security and medical care adopted in 1944.
This was followed by adoption of social security (Minimum Standards) Convention 1952, which divides social security measures into nine components:
(i) Medical Care,
(ii) Sickness Benefits,
(iii) Unemployment Benefit.
(iv) Old Age Benefit,
(v) Employment Injury Benefit,
(vi) Family Benefit,
(vii) Maternity Benefit,
(viii) Invalidity Benefit, and
(ix) Survivors Benefit.
The convention is in force in member countries.
In June 1959, the International Labour Organisation adopted, yet another Recommendation (No. 112) concerning occupational Health Services.
The Recommendation envisages that occupational health service should be established in or near a place of employment for the purpose of:
(i) Protecting the workers against any health hazard arising out of works or conditions in which it is carried on,
(ii) Contributing towards the workers physical and mental adjustment,
(iii) Contributing to establishment and maintenance of the highest possible degree of physical and mental well-being of workers.
Significance:
We have defined that social security is the security which the society especially state and employer furnish through appropriate organisation against the risks which an individual of small means cannot, today, stand up by himself or even in private combination with his fellow countrymen.
Thus, social security measures have a twofold significance for every developing country. They constitute an important step towards the goal of a Welfare State, by improving living and working conditions and affording the people protection against the uncertainties of the future.
The Royal Commission on Labour noted that majority of industrial workers had migrated from villages. The new environments of urban settings had created for them unprecedented problems, e.g. an absence of pleasures of family life, malnutrition, food adulteration in cities, over-crowding in sub-substandard houses and various types of industrial hazards all militating against the good physique and health of the worker—which he originally possessed when he migrated from the village.
The Labour Investigation Committee also studied in great detail the medical and health care amenities provided to workers outside the workplace. It stated that although provision of such amenities was largely the function of municipal and local bodies, it was also the responsibility of employers partly to provide such facilities to their workers.
The committee, therefore, supported the more, then reported to be under consideration of the Government of India, for unified scheme of social insurance to provide medical and health care in respect of three contingencies—sickness, employment injury and child birth.
Article 41 of the Constitution of India says that, “the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness, and disablement and in other cases of undeserved want.”
These measures are also important for every industrialisation plan, for not only do they enable workers to become more efficient, but they also reduce wastage arising from industrial disputes. The man days lost on account of sickness and disability also constitute a heavy drain on the slender resources of the worker and on the industrial output of the country. These measures also reduce absenteeism and labour turnover and help in the formation of stable and efficient labour force. Thus, lack of social security measure impedes production and prevents the formation of stable and efficient labour force.
Considering the Importance of Social Security, the International Social Security Association rightly said, “No peace without social justice and no justice without social security.”
Evolution:
Measures adopted by different societies for protecting the needy individuals have been manifold. Beginning with individual act of charity and philanthropy, these devices progressed to include mutual benefit schemes, both formal and informal. Then followed state sponsorship and state participation, finally culminating in the present pattern where social security measures form a major plank of Governmental policy in many countries.
In early stage, workers sought protection against the contingencies they were exposed to through small savings, employer liability or private insurance. Later, protective legislation became common on the theory that the employer who set up a factory created an environment which was likely to cause injury to his work people and the loss sustained by the victim should be a charge on the employer.
Public authorities and private corporations beyond a particular size had the capacity to discharge this liability, but all wage earners did not necessarily work in big undertakings, Small employers who were predominant, found it difficult to give benefits to their workmen, particularly when claims were made in a bunch in respect of any accident.
Mutual-aid Societies of workers grew up with the object of helping their members in times of sickness with simple medical care and payment for funeral, if death occurred, in return for public contributions. There were the earliest social insurance institutions, though their arrangement lacked system.
Gradually, they were brought under Government supervision. Trade unions often acted as mutual-aid societies, but they could afford to disburse benefits only for comparatively brief spells as they depended solely on the contributions of their members. The societies could not safely undertake old-age or life insurance.
Insurance offices under the guarantee of the state, which offered facilities for three types of insurance to persons of small means, were the next stage. Life insurance could not adapt itself satisfactorily to the exigencies of social security operations, but insurance companies played an important role in supplementing the protection afforded by social security schemes.
These traditional approaches gave rise to two main currents in the movement towards social security; social assistance, representing the unilateral obligation of the community towards its dependent groups, and social insurance, based on compulsory mutual-aid.
Essay # 6. Benefits Provided under Social Security (Scope of Social Security):
The various benefits normally provided under a social security scheme are as follows:
1. Medical Care:
Free medical care is provided as and when needed.
2. Sickness Benefit:
Cash benefit is provided in the event of sickness. This is often conditional which is given on fulfilling certain contribution conditions and is usually limited in duration.
3. Maternity Benefit:
Cash benefit is paid to insured woman or even to the wife of an insured man in the event of confinement. This is usually payable for six weeks before and six weeks after the delivery at rates which vary from half of the wages to full wages. In some countries some additional lump sum allowances are also paid to enable the family to buy new clothings, toilet equipment and other things for the baby.
4. Unemployment Benefit:
Unemployment benefit is payable to able bodied workers who are willing and available for employment but are unable to find any work. Entitlement to this benefit is also conditional on having paid certain contribution and is usually limited to certain number of days or weeks.
5. Accident Benefit:
Cash benefit is paid for accidents at work. This may be in the forms of Temporary Disablement Benefit payable while the disablement lasts or it may be in the form of pension for life, the amount of benefit depends on the extent of Permanent Disablement. The benefit may also be the form of pensions for varying duration to dependents of deceased insured person.
6. Old Age and Invalidity Benefit:
Pension is also payable in the event of invalidity, retirement or death of the employee. Invalidity and retirement pensions are payable to the worker and the survivorship pensions are payable to his dependents. For all these pensions, different qualifying conditions are attached.
7. Family Benefit:
Lastly, in some of the western countries, it is now recognised that it is the responsibility of the State to support the family in bringing up children.